It's almost Friday!
Jim Cramer's got some thoughts on Slack's earnings, Dollar General's earnings and the U.S.-China trade war.
Slack posted earnings after the bell Wednesday, Dec. 4.
The messaging company reported a third-quarter net loss of 2 cents per share on revenue of $168.73 million, a nearly 60% increase year over year. Analysts were expecting a loss of 8 cents per share on revenue of $156.02 million.
Fourth-quarter guidance was slightly off, however, with the company expecting to lose between 6 cents and 7 cents per share. Wall Street is expecting a loss of 6 cents per share.
And, yet, post-earnings, the stock was highly volatile.
So, with a stock that boomeranged post-earnings, what's the playbook?
Why Are We Talking Five Below and Dollar Tree?
"We've got a winner and new champion when it comes to tariffs and mitigation: Five Below (FIVE) - Get Five Below Inc. Report. The clever, rapidly expanding Philadelphia novelty store blew the numbers away and talked about how its price increases MORE than mitigated current and future tariffs with China," wrote Cramer.
"...Who is at the mercy of tariffs? That's clearly Dollar Tree, hence the chaos on its conference call. Do you know that Five Below has a number of $5.50 products now with no push back from consumers? At the same time, it is opening a Ten Below store -- and that, too, seems to be a positive test. Another leg of what was a one-legged stool," he continued.
So, what's the key for survival for these companies?