High-Flying Travel; Micron Downgrade Reasonable: Jim Cramer's View

Jim Cramer shares his views every day on RealMoney. Click here for a real-time look at his insights and musings.

Cramer: Travel Is Flying High on Stellar Earnings

Originally published May 9 at 12:21 p.m. EST

Travel had the makings of the greatest short. With airline reservations having precipitous declines after President Trump announced his travel ban from certain Muslim-majority countries, you had to figure that anything tourism would have plummeted in the first quarter.

We knew for a fact that bookings for everyone in the industry fell after the Jan. 27 and Mar. 6 executive orders, so why not bet against this $250 billion industry, especially when the experts were predicting declines of as much as $18 billion if the bans stayed in place for the next couple of years.

In a market starved for short selling ideas, here at last was a terrific one that had saying power and would take you right through into April and May.

It only got better after the United Continental (UAL) drag-a-thon occurred, where you had to figure there would still be another leg down in the revenue per passenger mile of the airlines and the hotel reservations numbers, especially the ones in the big cities where the tourism decline had to be crushing.

Turns out though, it wasn't--and the upshot is that those who did bet against travel and leisure are truly on the ropes after some sharply better-than-expected numbers.

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