CNBC’s Jim Cramer on Tuesday gave investors his blessing to consider buying downed tech stocks after Target’s last quarter signaled good news for the Federal Reserve’s fight against inflation.
“The real greenlight here is in beaten-down tech.… They might deserve a bit of a revival if they have revenues and a total romp if they have buybacks and dividends,” he said. he said.
“This is not a subtle market. I don’t want you to overthink it because sometimes it can be easy,” he added.
Cramer’s comments came after Target said in its most recent quarter that it would have to pour out its excess inventory, which would have hampered the company’s profits.
The host of “Mad Money”, who the other day advised investors to buy only the decline in oil stocks, whose Target news suggests that inflation is rising. This opens the door for investors to buy stocks that previously could not be handled in an environment of high interest rates, he said.
Listed ServiceNow, Broadcom and Salesforce as names that were more attractive after the Target news, Cramer said he was still moving away from short-term retail stocks.
He also warned investors that this change in the market could disappear as fast as it can, due to economic volatility.
“Of course, this market is so volatile that this whole move could be reversed when we get the big consumer price index number over the weekend.” He said.
Disclosure: Cramer’s Charitable Trust owns parts of Salesforce.
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