Jim Cramer: Price target boosts are actually moving stocks higher

"Welcome to the world of the bull market, 2021, where brokerage houses routinely raise their price targets each day, often on the same stocks, and the public just laps it up," the "Mad Money" host said. Subscribe to CNBC PRO for access to investor and analyst insights: cnb.cx/2Vtntx6
Investment firms are making a habit of raising stock price targets and the market appears to be confirming the calls being made by analysts, CNBC’s Jim Cramer said Tuesday.
“Almost every single time a Wall Street analyst says a stock’s going higher, perhaps far higher, the market proves them right. There are just that many bulls out there - people who want to believe,” the “Mad Money” host said.
“It’s incredible that something as prosaic as price target boosts are actually moving stocks higher, the ultimate self-fulfilling prophecies,” he said.
The comments came after major U.S. averages clawed back some of their losses Monday. The Dow Jones Industrial Average picked up 60 points to close at 31,068.69 with a gain of 0.19%. The S&P 500 inched up 0.04% to 3,801.19, and the Nasdaq Composite rose 0.28% to a 13,072.43 close.
“Welcome to the world of the bull market 2021, where brokerage houses routinely raise their price targets each day, often on the same stocks, and the public just laps it up,” Cramer said.
After the coronavirus pandemic and lockdowns last year led analysts to slash corporate estimates and price targets across various sectors, they are reassessing the path forward for businesses as they and the broader economy attempt to recover from recession, he said.
“Instead of a vicious cycle down the drain, we got a quick pivot, followed by what’s known as a virtuous cycle higher, led by the endless, ready-made price target boosts that Wall Street’s so good at,” he added.
Cramer said recent calls being made in research notes are fueled in part by last year’s historic government intervention, including by Congress and the Federal Reserve, in the first half of 2020 to absorb some of the economic fallout from coronavirus lockdowns. Cramer called it the “most effective federal response to a recession in living memory.”
The stock market recovered from the February-March meltdown and returned to new highs later in 2020 as Covid-19 developments sparked optimism on Wall Street about a V-shaped economic recovery.
“This moment is a nightmare for the bears but nirvana for the bulls, especially with the government finally pushing to vaccinate everyone over 65,” Cramer said. “As long as the virtuous circle of number bumps ... keeps propelling stocks higher, you’ve gotta stick with the bull market.”
» Subscribe to CNBC TV: cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC News on Twitter: cnb.cx/FollowCNBC
Follow CNBC News on Instagram: cnb.cx/InstagramCNBC
www.cnbc.com/select/best-credit-cards/
#CNBC
#CNBCTV

评论 

  1. jacob kornblue

    jacob kornblue

    3 天 前

    People need to realize that retail investors are having an effect in the market. Everyone says it's nothing compared to the big money but take a look at youtube videos and the next day after stocks are hyped. Just sayin

    • Diana Shelton

      Diana Shelton

      2 天 前

      I agree with you. I really do believe retail investors are impacting the market.

  2. Zheng Si

    Zheng Si

    3 天 前

    The stock, NLLSF, is better than PLUG, but its price is only around $4. It delivers various solutions to produce, store, and distribute hydrogen from renewable energy worldwide. It operates through three segments: Nel Hydrogen Fueling, Nel Hydrogen Solutions, and Nel Hydrogen Electrolyser. The company produces

  3. Laftis Kuno

    Laftis Kuno

    4 天 前

    laser focus these 3: PLUG, FCEL, GEVO

  4. Anupam Wadhwa

    Anupam Wadhwa

    4 天 前

    You're Goddamn Right.

  5. Robert Brechin

    Robert Brechin

    5 天 前

    Not sure about the logic of so many deaths and such turmoil and "markets will run on and on..." Maybe no smart accountant has done an actuarial of the Covid deaths. Maybe, the impact will be like hundreds of thousands of rich estates handed down all at once? Jim - you can call them Robinhoods. You can called them bellboys. They are one and the same through the ages. I'm thinking of getting out before greed squeezes my lungs dry.

  6. noud

    noud

    5 天 前

    Where did the money come from, am I dreaming ore is the rest of the world hat sleep.

  7. Benya Creek

    Benya Creek

    5 天 前

    And also easy to explain why the bubble blow

    • CNBC Make It.

      CNBC Make It.

      4 天 前

      + 1 (7 8 1) 7 8 6 - 8 1 6 7

    • CNBC Make It.

      CNBC Make It.

      4 天 前

      Thanks to my broker I am rich Finally I left the walls of poverty I advise people to trade with him and learn how crypto can be more interesting Here is his WhatsApp info for those who care to know more

    • CNBC Make It.

      CNBC Make It.

      4 天 前

      Investing in crypto currencies has just made my smile a little brighter than before

  8. Aj Jones

    Aj Jones

    5 天 前

    Tsla 1k got it 🚀🎯

  9. mrpmj00

    mrpmj00

    5 天 前

    buy AMAZON, ZOOM, FACEBOOK, NVIDIA, capitol riot means a covid19 petri dish; we need another lockdown. we have streaming and don't need to travel or go to a commercial theater and avoid covid19, mass shooting (gun sales doubled in 2020), police killing nonwhites like George Floyd, and exploding RVs like in Nashville, capitol rioters bringing pipe bombs

  10. paintballer819

    paintballer819

    5 天 前

    Ayyy POUND THE TABLE

  11. Guillemo Dred

    Guillemo Dred

    5 天 前

    Money earned from work and ingenuity is trampled by the gusher of free money from the Fed. Honest work has never been worth less.

  12. V M

    V M

    5 天 前

    Look at this crook bragging about unstoppable stock market, the one can’t go up without stimulus. Putting poor further into poverty. Drunk Bull.

  13. Ed Lopow

    Ed Lopow

    5 天 前

    MANUFACTURING IS WAY UP. THE ECONOMY IS GOOD. ONLY THE ENTERTAINMENT AND RESTAURANTS HAVE SOME TROUBLE NOW. STOCKS TO THE MOON. TAKE US THERE YOU BALD HEADED PROPHET!!!!!!!!!

  14. Dennis An

    Dennis An

    5 天 前

    Everyone should know that the rise in stock prices have been correlating with the increase in bond yields. Cramer knows it, I know it, and now you know it. Don’t believe me? Go check your charts and don’t be fooled by entertainers with a history of losing money. If Cramer gets a button that sounds like a rocket and uses that instead of the “buy” button for a week, I pledge not to talk crap about Cramer for life.

    • Nelley Vanderwall

      Nelley Vanderwall

      天 前

      @Dennis An thank you for the explanation! That make sense :) Thanks for the heads up

    • Dennis An

      Dennis An

      天 前

      @Nelley Vanderwall in theory, there is only a limited amount of money on the market no matter what(excluding inflation). So with inflation adjusted, that means as bond prices go up, stock prices go down. As inversed, stocks go up when bond prices go down(yield rate is opposite of bond prices). Cyclicals(finance, oil, travel, leisure) usually track 5/10yr bonds and tech/e-commerce tend to follow 20/30yr bonds. Be careful in the market and be extremely selective. I would express worry about investing in ETFs.

    • Nelley Vanderwall

      Nelley Vanderwall

      4 天 前

      Yeah you are right about the bond yields, I saw Cathie Woods talking about it. But what does it mean? Is it a bad thing? Sorry newbie here.

  15. Rick DuMond

    Rick DuMond

    5 天 前

    Twitter? Hahahahaha...I think not

  16. Life is Options

    Life is Options

    5 天 前

    Ya 12 month price targets from the most bullish guy being hit in 2 days .... I wonder how this will end

  17. J C

    J C

    5 天 前

    Cramer says he’s been in for 40 yrs but seems to neglect the late 1990s when price targets kept moving. What he’s not telling you is that these analysts have to move targets up or they make their forms look bad and lose business or street cred. Cramer should be warning you about the hyper inflated prices and how analysts “KNOW NOTHING”. But I guess he just waits until things look bad and it’s too late to respond. Good luck folks in the next year, but we will have a deep correction if not recession.

    • Terry Lee

      Terry Lee

      3 天 前

      Just wait till bear comes.

  18. Metal Bum

    Metal Bum

    5 天 前

    Glad I moved some gold into bitcoin. It’s like a brand new growth commodity.

  19. RogerM

    RogerM

    5 天 前

    Smells like inflation everywhere. Go check the past and learn about the market speculation.

    • Harry B. Allsachs

      Harry B. Allsachs

      5 天 前

      Explain like I'm five please!

    • Kev A

      Kev A

      5 天 前

      Can you elaborate?

  20. Andres Lozano

    Andres Lozano

    5 天 前

    Square!!!! 🚀

  21. Trader Gators

    Trader Gators

    5 天 前

    Stocks to the MOON!

    • zrRyan2

      zrRyan2

      5 天 前

      Stonks only go up, lol

  22. Origraphy With Kanha

    Origraphy With Kanha

    5 天 前

    Potty

  23. HELPME100

    HELPME100

    5 天 前

    Ugh consumables 😘

  24. Like Gods

    Like Gods

    5 天 前

    I buy PSEC only. It pays me monthly , Jesus Christ is God 777

  25. Jesse james

    Jesse james

    5 天 前

    🚀🚀🚀🚀

  26. Travis Davis

    Travis Davis

    5 天 前

    Tesla is extremely overvalued due to idiots buying stocks on margin and analysts pulling numbers out of thin air.

    • Rick Hammond

      Rick Hammond

      天 前

      Try doing extensive research instead of throwing out an ignorant statement next time.aka Catie Wood

    • Philip Vuong

      Philip Vuong

      5 天 前

      @Ed Woolsey I think anyone calling anyone a fool when it comes to stocks is foolish when the future is unknown. Amazon had a price of 105 in April 23rd 1999 kept falling to as low as $5.97 in September 28th 2001. Amazon achieve a huge valuation further in the future, but it would have not have been foolish to be fearful and sell, and buy back at a lower price.

    • Travis Davis

      Travis Davis

      5 天 前

      @zrRyan2 Volkswagen Group records higher deliveries in 2019 Despite shrinking overall markets, worldwide deliveries grow by 1.3 percent to 10.97 million vehicles Market share expanded in all regions, in some cases significantly Strong growth of around 80 percent in electric vehicles to more than 140,000 units Despite shrinking overall markets, the Volkswagen Group grew its worldwide deliveries by 1.3 percent to 10,974,600 vehicles in 2019. Market shares were expanded in all regions, in some cases significantly. Volume growth was achieved in Europe (+3.9 percent) and South America (+3.2 percent) while there were slight falls in North America (-0.5 percent) and Asia-Pacific (-0.4 percent). Strong growth was recorded with electric vehicles. As a result of many new models within the framework of the Group’s electric offensive and growing interest on the part of customers, there was a rise of around 80 percent to more than 140,000 vehicles.

    • zrRyan2

      zrRyan2

      5 天 前

      @Travis Davis check your research. VW's EV deliveries in 2020 was not even close to that.... but to be fair, in 2021, they should hit that #, which is awesome.

    • Travis Davis

      Travis Davis

      5 天 前

      @Ed Woolsey Volkswagen sold about 150k ev’s in 2020 plus 10million ice cars and Tesla is worth 6 times as much as Volkswagon.

  27. Ibrahim Nelson

    Ibrahim Nelson

    5 天 前

    10:43 has the best 😍💋 💝💖❤️

  28. Cameroncool5679 Hoff

    Cameroncool5679 Hoff

    5 天 前

    LETS GO CRAMMMMERRRR

  29. 904TallerTim

    904TallerTim

    5 天 前

    ✌🏿

下一个