Stocks were falling Friday after the biggest technology companies in the U.S. posted earnings that topped Wall Street expectations but issued tepid outlooks for the rest of 2020.
TheStreet's Katherine Ross discussed breaking news in the stock market. Cramer spoke about stock market reactions to the earnings reported by tech giants Apple and Amazon and oil major Exxon Mobil.
Amazon: Buy Or Sell?
Amazon reported earnings of $12.37 per share on revenue of $96.15 billion. Analysts were expecting the company to report earnings of $7.41 per share on revenue of $92.7 billion.
Cramer said if you wanted a forecast for Amazon their CFO could have easily just given a double number. "They are spending a fortune on making sure that their workforce is healthy. They are right to spend that money. Only the real pushions on Wall Street decided they didn't like that. It was a great quarter. To me, their stock should be up not down."
Exxon Mobil: Buy Or Sell?
Exxon Mobil (XOM) - Get Exxon Mobil Corporation Report posted a narrower-than-expected third-quarter loss Friday, following a similar report from rival Chevron Corp., as the biggest U.S. oil companies continue to focus on cost cuts amid a plunge in global oil prices.
Group revenues, Exxon said, fell 29% to $46.2 billion, a figure that also topped analysts' estimates of a $43.7 billion tally.
It also said it was reassessing its natural gas holdings in North America and could take impairments on assets with a book value of as much as $25 billion to $30 billion - but only if it changes its long-term development plans. It is evaluating those assets this quarter, which include properties it added with its 2010 purchase of XTO Energy, a deal worth roughly $30 billion at the time.
Cramer said their $30 billion write off was pathetic. "Wouldn't that deal happen when they bought XTO? I castigated them on air and said that XTO got the better part of the bargain."
Apple: Buy Or Sell?
Apple (AAPL) - Get Apple Inc. Report shares slumped lower Friday after the tech giant declined to provide current quarter guidance amid the global coronavirus pandemic, clouding better-than-expected fourth-quarter earnings.
Apple said iPhone revenues came in at $26.44 billion, down more than 20.7% from last year and just off the Street forecast of $26.5 billion thanks in part to the late launch of the iPhone 12.
Cramer said he was not worried about the drop in Apple's iPhone revenues. "Not one bit. 5G is available and they're selling a 4G phone. That's like AOL when people stayed with it. I found it ridiculous that all the analysts seemed to think that this was a major sea change for Apple. And things are wrong. It's the opposite. It was a really good quarter."
Apple and Amazon are key holdings in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.