We have seen several big cap tech stock blow-ups on earnings this week. So called Meta stock crashed over 24% on Thursday after the company reported a total earnings disaster the night before. The company is losing billions on this Metaverse thing, which is turning into a fad that no one really wants, so it’s not even really a fad. It also revealed that online ad spending is in decline, due to the economy. Google reported the same thing too this week and also saw a big stock hit. It revealed that Youtube ad spending is also shrinking, with a huge decline in crypto and stock trading ads. Now last night Amazon crashed on earnings.
The losses provoked Jim Cramer to actually cry on air, and beg forgiveness for sucking people into Meta, as you can see from this Tweet.
Ever made a stock pick so bad that it made you cry on national TV?— Genevieve Roch-Decter, CFA (@GRDecter) October 27, 2022
Well, now Jim Cramer has…pic.twitter.com/Aa62z8nGQV
Should you feel sorry for Cramer?
Well, it’s a bear market and stocks are prone to imploding in a bear market.
He can’t really tell his viewers, though, that its a bear market, because then they’ll change the channel and his producers would fire him.
The problem is that the masses don’t want to hear that- all they want is stock picks and to be told that they should hold on and ride things out and they’ll be fine.
So, he is in a trap where he must deliver what they want.
If an investment advisor tells their clients to sell and the market goes up they will lose their clients, but telling them to hold on in a bear market like this keeps the clients even if it causes horrible losses.
Some brokers use drugs or turn to drink to help deal with the stress and feelings of guilt that this can all cause.
It looks like Cramer just cries.
It’s a bear market.
And it’s a tough one.
It’s not fun for anybody.