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Jim Cramer's Breaking Down Tesla's $100 Billion Market Cap, IBM's Earnings, and Phase Two

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And just like that, it's hump day. 

Jim Cramer's watching Real Money stock of the day IBM IBM, Tesla's market cap, and he's got some thoughts on phase two of the trade deal.

Is it Time to Prep for Phase Two?

Cramer says hold your horses. But let's break down why it's top of mind for investors.

President Donald Trump has been talking trade while in Davos, Switzerland for the World Economic Forum.

"And yes, we’re starting phase two very soon. But the relationship that we have now with China is probably better than it’s ever been. The relationship I have with President Xi, president for life. Okay? It’s not bad. But the relationship I have with President Xi is, you know, I think extraordinary, considering he’s for China, I’m for us," President Trump told CNBC's Joe Kernen earlier Wednesday morning. 

Talkin' Tesla

Tesla officially has a market cap of over $100 billion and it's nearly $600 a share.

Tesla shares have more than doubled over the past six months as analysts and investors reset profit expectations for the electric car market's industry leader amid stronger-than-expected quarterly delivery figures, the ongoing expansion of production facilities in China and a more disciplined approach to communications and stewardship from founder and CEO Musk. 

Jim Cramer wrote about Tesla in his Real Money column Wednesday morning.

The title of his column? "Think of Tesla as a tech equity, not an auto stock."

So, can anyone catch up?

And, Finally, IBM's Earnings 

Real Money Stock of the Day IBM released earnings that came in at $4.71 per share, 2 cents ahead of the Street consensus forecast. Group revenues, IBM said, were largely flat to last year at $21.78 billion, but that figure topped analysts' estimates of a $21.64 billion tally.

"With our high-value mix and focus on productivity, we expanded our gross margin and we had strong free cash flow generation," IBM CFO James Kavanaugh told investors on a conference call late Tuesday. "With this trajectory, in 2020, we expect to grow revenue, operating earnings per share and free cash flow, and expand operating gross margin." 

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