NEW YORK (TheStreet) -- What is going on with the stock market? Price action for some big stocks may not have been what many investors had expected following their earnings reports this week, said TheStreet's Jim Cramer.
Look at Facebook (FB). It beat analyst expectations on the top and bottom lines, he said. Despite its incredible growth, the stock sold off. Cramer suggested it was because investors were disturbed to learn teen users are not using Facebook as much.
While Facebook has said it will not bombard its platform with advertisements, investors worry the ads are driving teens away, causing the stock to drop, he said. However, that means Cramer is looking to buy more for his Action Alerts PLUS charitable portfolio on the dip.
Meanwhile, Exxon Mobil (XOM) barely beat earnings expectations and went higher. According to Cramer, this is because Exxon investors finally feel compelled to buy shares since the company has largely failed to deliver encouraging results until now.
American International Group
(AIG), another AAP holding, reports earnings after the close on Thursday. Cramer said the company has a book value of $60 per share. He'll be watching to see if investors sell the stock following the report. He would be a buyer if that's the case.
He called AIG "the right stock for this time in the bond market and for this time in the insurance cycle."
-- Written by Bret Kenwell in Petoskey, Mich.Follow @BretKenwell
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts