Jim Cramer and Katherine Ross are discussing the shocking April jobs report, earnings from Square (SQ) - Get Report and DraftKings (DKNG) - Get Report and whether or not Cramer still believes we could see a "Super-V" recovery in the video below:
April's Jobs Report
The U.S. economy added far fewer than expected new jobs last month, the Labor Department said Friday, underscoring the uneven nature of the economic recovery despite trillions in spending and record-low interest rates.
The Bureau for Labor Statistics said 266,000 new jobs were created last month, with headline unemployment rate edging slightly higher, to 6.1%. The April report came in far lower than expert expectations of 978,000. This suggests the gradual reopening of non-essential business, as well as the accelerated vaccine rollout, isn't being played out in labor markets where prospective workers are potentially demanding higher wages.
Is Square a Crypto Play?
Square's first-quarter earnings and sales topped analysts' forecasts amid explosive growth in digital transactions.
Adjusted earnings of 41 cents a share in the quarter topped analysts' forecasts for 17 cents. Revenue soared almost four times in the quarter to $5.06 billion.
Bitcoin revenue amounted to $3.51 billion, up from $306 million a year earlier and estimates of $2.06 billion.
DraftKings Reports Earnings
DraftKings reported a loss of $346.3 million, or 87 cents a share, compared with a year-earlier loss of $68.7 million, or 37 cents a share. The company reported a pro forma loss of $82.1 million in the year-ago quarter.
Revenue totaled $312.3 million, up 252.6% from a year ago and handily beat analysts' estimates of $236.2 million.
"The results showed that Americans continued to bet on sports and play games like poker and blackjack on their phones despite the U.S. economy reopening as vaccine distribution ramped up," CEO Jason Robins said in a statement Friday. "The guidance assumes that announced professional and college sports calendars come to fruition. “DraftKings is off to an outstanding start in 2021.”
A Super-V Recovery?
"Sometimes, reality can be a lot better than our expectations, Jim Cramer told his Mad Money viewers Thursday. Last year, in the depths of the pandemic, no one thought that science would prevail over COVID-19 so quickly, or that our economy could sustain so many shutdowns and supply chain interruptions," wrote TheStreet's Scott Rutt in his Mad Money recap. "As the pandemic wore on, pundits began to speculate on what shape the recovery would take. First, they predicted an L-shaped recovery with no upside. Later, they thought we might see a W-shaped recovery with a surge from stimulus payments, followed by a second decline."
"But while investors speculated, consumers took their stimulus checks and invested in their homes, paid down debt and boosted their savings. Younger people invested their checks in the stock market. And eventually, American science prevailed, creating highly effective vaccines in less than a year," Rutt wrote. "What we ended up with wasn't an L, or a W, or a U or even a V, but rather a "Super-V," where it appears stocks are much better off than they were before the pandemic. The implications of such a strong recovery are only now becoming obvious, Cramer said, and that's why stocks are able to continue powering higher."