Did you miss "Mad Money" on CNBC? If so, here are some of Jim Cramer's top takeaways.
What happens when a market darling suddenly turns on a dime? You need to determine whether you have a broken stock or a broken company, Cramer told viewers, as he dove into the recent decline in Autodesk (ADSK) - Get Autodesk, Inc. Report .
Autodesk had been one of the top 20 best performing stocks in the S&P 500 up until Thanksgiving, with shares that were up 75% for the year. But that all changed when the company last reported earnings, sending shares tumbling from $130 to just $109 in a single day.
Did Autodesk miss earnings by a mile? Slash estimates? Forecast a huge slowdown? No. In fact, earnings were better than expected, but the company gave a tepid outlook, lowering the top end of their subscription guidance from 675,000 subscribers to just 650,000.
This small change may not seem like a big deal, but for a high-flying stock, you can't just beat earnings, you need to crush them. That adds a new level of uncertainty to Autodesk, which caused Cramer said say he wouldn't start a new position in the company. Instead he'd be patient and see what next quarter brings.
Over on Real Money, Cramer wonders what industry will Amazon.com (AMZN) - Get Amazon.com, Inc. Report destroy next or what happens if people stop buying iPhones. Get more on his insights with a free trial subscription to Real Money.
Cramer and the AAP team find it interesting that the Allergan (AGN) - Get Allergan plc Report CEO is buying shares. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
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At the time of publication, Cramer's Action Alerts PLUS had a position in AGN.