Cramer’s Friday Reflections on Cloudflare, DraftKings, Expedia, Booking, and Hershey

Jim Cramer’s daily rapid fire looks at stocks in the news outside the CNBC Investing Club portfolio provided valuable insights into the market trends. One of the companies under scrutiny was Cloudflare, whose shares were sinking 16% after the second-quarter revenue outlook fell short of analyst estimates. Despite this, Cramer believes that the company is not necessarily losing market share, but the slower growth rate is a cause for concern.

On the other hand, DraftKings reported a better-than-expected quarter with revenue up 53% and $22 million in adjusted EBITDA. CEO Jason Robins emphasized the rationalization of their business model, which Jim Cramer views as a positive sign for potential stock growth. Expedia, on the other hand, saw a 14% drop in shares due to first-quarter bookings missing estimates, with Vrbo weakness being a major factor.

Booking Holdings, Expedia’s rival, fared better due to its international exposure, earning praise from Cramer for their strong performance. Hershey, the chocolate company, delivered top and bottom-line beats despite challenges with higher cocoa prices. Cramer sees opportunity in the declining cocoa prices and suggests considering alternative investments like Mondelez, which utilizes chocolate in its products.

Overall, the analysis of these companies showcases the dynamic nature of the stock market and the importance of staying informed on industry trends and developments. Investors should consider a diversified portfolio approach and be mindful of market fluctuations to make informed investment decisions.

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