What Cramer is watching Thursday — Tesla up big, airlines bounce back, Disney's dilemma

Published Thu, Apr 21 20229:39 AM EDTUpdated Mon, Apr 25 202210:32 AM EDT

What I am looking at April 21, 2022 Is Tesla (TSLA) the opposite of Netflix (NFLX)? Is the electric car maker the big Nasdaq stock that pulls up the Nasdaq? Tesla shares soared more than 7% in premarket trading after reporting record quarterly profit and beat the Streets estimates for sales and earnings. The terrible linkage of all big high-fliers can be flipped pretty easily in a thin market …Tesla has supply problems like everyone, but far fewer because of its amazing supply chain. Tesla CEO Elon Musk wants more lithium and wants it to cost closer to the means of production. Spot Lithium price is 10 times higher than the cost of extraction. So it's not like we are talking 90% margins here. Can more people please get into the lithium business? Do you like minting money? Well the lithium business is for you. Same day that Mexico nationalizes the lithium business. Musk doesn't disagree with the idea that he might have $500 billion at end of day but with inflation maybe that's $20 billion. Very little about the cyber truck and NOTHING about Twitter (TWTR). Dedicated Robitaxi was talked about in the call with investors. No steering wheel OR pedals ... lowest cost per mile … still has 20 million electric vehicles annually by the early 2030s. "Tesla Shanghai coming back with a vengeance." RBC Capital downgrades Chevron (CVX) to hold and upgrades Exxon Mobil (XOM) to a buy. The analyst is worried about Chevron's Tengiz oil volumes in Kazakhstan, which are transported through Russia. Exxon is more de-risked. I think Chevron remains best in class and you should not sell it … I will say that to the Club members, too. Lam Research (LRCX) missed on Wall Street forecasts for revenue and earnings not due to lack of demand, but because it cant get all the chips it wants. Still, the results signal that there is a slowdown in orders for chips that go into consumer products — INCLUDING cellphones, which may be because of demand destruction from inflated prices. The supply issues are not going away any time soon. But the company has such strong demand for everything else … $100 billion wafer fabrication equipment business this year … Incredible demand. United Airlines (UAL) with a tremendous outlook — management said it expects to return to profitability this quarter as travel demand surges. This presages what I think American Express (AXP) will say tomorrow. It sure doesn't seem like we are going into a recession. Barclays raises price target to $58 from $50. American Airlines (AAL) up more than 10% in premarket trading after a smaller-than-expected loss and predicting return to profits in the second quarter. Lululemon Athletica (LULU) had a very positive analyst meeting. But two odd takeaways: the company's low unaided brand awareness and its lack of LULU branding … They spent $500 million on the Mirror start-up in the pandemic in June 2020. It's a mirror that can be used for a huge number of classes for $39 a month. But there's no real LULU branding. Could this end up being their Peloton (PTON) as home subscription businesses seem to be waning? Worth asking. Align Technology (ALGN) price target lowered to $600 from $740 at Piper Sandler, which cites China Covid lockdowns, global supply chain challenges and questions around the company's Moscow R & D operation. Disney (DIS) … theme park boom … and yet analysts see it as a subscription business. When is this company going to get a break? Did the problems start with the $71 billion acquisition of Fox's entertainment assets and NOT the launch of Disney+? Should we stop blaming CEO Bob Chapek already? Getting long in the tooth. CSX is very strong: The railroad operator beat quarterly earnings and revenue estimates. Freight long term is strong. Great read through to the U.S. economy. Earnings of 39 cents per share versus 37 cents consensus. Revenue jumped 21% to $3.41 billion. CEO Jim Foote was pleased but "not yet satisfied with our service performance." Needs more train and service employees. Where are the buyers of the 20-year Treasury, which at about 3.04% is now higher the 30 year? We used to think European buyers would have to come here. But they aren't. Club holding Procter & Gamble (PG) price target raised to $150 from $140 at Credit Suisse, but keeps at neutral. Analyst is clearly behind given top-line momentum. Will he be dragged into an upgrade? Wells Fargo (WFC) says Apple (AAPL) will report in-line iPhone results when it reports earnings late next week. Meta Platforms (FB) price target lowered to $272 from $336. Reels and service message block (SMB) are the issue. Do these guys know what they are doing? I think so but they have an odd way to do it. Alphabet (GOOGL) — FANG revulsion continues, price target lowered to $3,400 from $3,500 at Credit Suisse. 22 price-to-earnings ratio. Blackstone (BX) adjusted earnings came in at $1.55 versus $1.07 expected by the Street. The private equity firm's shares jumped 4% in premarket trading. Abbott (ABT) price target lowered to $135 from $143 at Raymond James. AT & T (T) beat on top and bottom lines. Dow shares were up 2% in premarket trading after chemical maker beat estimates for sales and earnings, helped by higher prices. "We see strong demand" … JPMorgan says Boeing (BA) making progress with 787 deliveries, but timing has slipped. Wedbush piece on Amazon (AMZN): demand much better than expected. (Jim Cramer's Charitable Trust is long AAPL, AMZN, CVX, DIS, FB, GOOGL, PG. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Tesla car owner Tim Shim, 42, shows on his mobile phone that his car is fully charged in Singapore October 25, 2021.

Edgar Su | Reuters

What I am looking at April 21, 2022

Is Tesla (TSLA) the opposite of Netflix (NFLX)? Is the electric car maker the big Nasdaq stock that pulls up the Nasdaq? Tesla shares soared more than 7% in premarket trading after reporting record quarterly profit and beat the Streets estimates for sales and earnings. The terrible linkage of all big high-fliers can be flipped pretty easily in a thin market …Tesla has supply problems like everyone, but far fewer because of its amazing supply chain.
Tesla CEO Elon Musk wants more lithium and wants it to cost closer to the means of production. Spot Lithium price is 10 times higher than the cost of extraction. So it's not like we are talking 90% margins here. Can more people please get into the lithium business? Do you like minting money? Well the lithium business is for you. Same day that Mexico nationalizes the lithium business. Musk doesn't disagree with the idea that he might have $500 billion at end of day but with inflation maybe that's $20 billion. Very little about the cyber truck and NOTHING about Twitter (TWTR). Dedicated Robitaxi was talked about in the call with investors. No steering wheel OR pedals ... lowest cost per mile … still has 20 million electric vehicles annually by the early 2030s. "Tesla Shanghai coming back with a vengeance."