Stocks traded lower Wednesday after the Federal Reserve noted the U.S. economy was strengthening but kept interest rates near zero.
TheStreet’s Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about how to trade AMD, meme stocks AMC Entertainment and Microvision and markets on Wednesday.
AMD: Buy Or Sell?
Advanced Micro Devices (AMD) – Get Report shares were dropping Wednesday even after the chipmaker forecast solid current-quarter sales and a robust full-year outlook on improving demand and easing of tensions in the global semiconductor supply chain.
Cramer said AMD is a buying opportunity because the stock is going down and there is nothing wrong with the company. “The only thing bad about AMD is it’s buying Xilinx. When AMD is up, you short AMD and you buy Xilinx. I think the arbitrage is what’s keeping it down,” said Cramer.
AMC Entertainment (AMC) – Get Report on Wednesday said it would not ask shareholders to approve the potential sale of 500 million more shares and added it hopes to sell up to 43 million shares in an at-the-market offering, in a Securities and Exchange filing.
Cramer said he won’t be too surprised if AMC CEO Adam Aron might be selling the stock furiously because the stock is up so much.
Cramer said Microvision (MVIS) – Get Report, depending upon who you talk to, is a nothing-little company. “It doesn’t do anything, it has never been successful. This is why 20% of the stock is short. Or you can argue that a $2 stock is now a $23 stock. It’s a $3.7 billion stock with actually no revenue. Microvision remains a plaything between the longs and shorts,” said Cramer.
Cramer said companies that are reporting unbelievable numbers are just not getting any credit. He added that companies like Microsoft (MSFT) – Get Report and Boeing (BA) – Get Report are leading the market down on Wednesday. “It’s interesting because there is no good news at Boeing and Microsoft had a stellar quarter,” Cramer said.