Tech stocks’ Thursday declines might not last long, Jim Cramer says

CNBC’s Jim Cramer broke down Thursday’s market action and praised recent quarters, saying that while tech stocks have taken a hit, they won’t stay down for long. Apple And Amazon.

“After Apple’s good quarter and great guidance and Amazon’s great quarter and great guidance, I wouldn’t be surprised if the money went right back into tech,” he said. “The technician will be on the field again tomorrow.”

Stocks fell during the session as investors analyzed Big Tech’s quarterly reports. S&P 500 While it lost value by 0.99%, Dow Jones Industrial Average Technology-heavy, down 0.23% Nasdaq Composite It fell by 1.58%.

Part of the day’s weakness was owed to: MetaThat’s the earnings report, Cramer said. While Facebook said it thought its parent company was posting solid results, investors were alarmed by the company’s plans to increase spending on artificial intelligence.

Meta said it expects capex to range between $70 billion and $72 billion, up from the previous forecast of $66 billion to $72 billion. The stock fell more than 11%, its biggest one-day loss since 2022.

Cramer suggested that the weakness in Meta spread to other related names in the group, including the semiconductor giant. Nvidia – finished the day with a 2% decrease.

He compared Meta’s quarter to those of Apple and Amazon; Both posted earnings results after Thursday’s close and saw shares move higher in extended trading.

Cramer said he was pleased with Apple’s revenue guidance and CEO Tim Cook’s assertion that he expects China to return to growth in the current quarter.

Amazon has made great progress on both the top and bottom lines, Cramer said, adding that it also offers strong guidance. He said Wall Street was primarily focused on results from the company’s web services division, and AWS managed to beat forecasts, with revenue growth rising from 17.5% to 20.2%.

“Maybe Meta is spending like a drunken sailor, but Amazon is doing just fine and is effectively putting up big numbers in the process,” he said.

Sign up now For CNBC Investment Club to follow Jim Cramer’s every move in the market.

Disclaimer CNBC Investing Club Charitable Trust owns shares of Meta, Nvidia, Amazon and Apple.