'Never underestimate the power of enthusiastic buyers who do not know what they're doing,' the 'Mad Money' host said.
"Sometimes the stock market roars and it makes perfect sense, but there's also plenty of stupidity, especially during earnings season when there's so much news that it's hard to keep track of what's going on," he said.before the morning bell, surged more than 7% Tuesday and Cramer was perplexed. The energy giant, which raised its dividend by 2.
The rally drew scorn from Cramer, who said it is vying for "dumbest action of the year" and noted that the stock made bigger gains on this quarter report than it did when the company announced that it raised its dividend in the first half of the year. "Not only are they telling you business is terrible, BP is trying to distance itself from crude while preserving cash, but maybe that dividend hike was a mistake," the host said. Tuesday's rally was a
"bigger gain than they got in February when they told you business was great and they raised the dividend." As for Sorrento, Cramer noted that he recommended the stock was a buy when it was at $8 a number of weeks ago. When the company announced last Wednesday a new saliva-based Covid-19 test that yields within half an hour, the stock price rose 3%."Turns out the market was just stupid because today, on the exact same news ... Sorrento rallied 31% to just under $13. The stock market's supposed to be efficient, but somehow it took Wall Street six days to process this news.
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