LIVE: Jim Cramer on Social Media Stocks, Bitcoin, Nio, Stock Market Monday – TheStreet
As Wall Street points mildly into the red in intraday trading Monday, Jim Cramer said he’s seeing encouraging signs for market bulls. Noting how stocks moved away from steeper losses in premarket trading, Cramer said, “It’s almost like a gun goes off and the horses leave the gate when they see markets down a lot.”
However, Cramer said he remains fixated on news out of Capitol Hill after Wednesday’s riot. “We really want – more than anything else – to stop thinking about Washington,” Cramer said.
Twitter (TWTR) – Get Report followed in the footsteps of Facebook (FB) – Get Report, Instagram, Snapchat (SNAP) – Get Report, and others by suspending President Donald Trump’s account permanently over the weekend.
Twitter announced its decision late Friday, citing concerns the President’s accounts could be used to incite more violence following a rally in Washington D.C., where Trump continued to claim unproven election fraud concerns to attendees. Following the rally, a mob stormed the Capitol, which led to the deaths of at least five people, including a Capitol police officer.
In the video below, Jim Cramer and Katherine Ross talk social media stocks, bitcoin, President Trump and everything moving the stock market Jan. 11:
“After close review of recent Tweets from the @realDonaldTrump account and the context around them we have permanently suspended the account due to the risk of further incitement of violence,” Twitter said in a statement.
The move has, however, put pressure on the social media stocks as investors sell following the decision, with Twitter down over 6% Monday.
Cramer said investors may not have fully recognized the full impact removing the President’s account will have on the platform as users will no longer see the latest out of the White House. “I don’t have to check with Twitter every minute anymore,” Cramer said.
The riot at the Capitol has led to calls from both Democrats and Republicans for Vice President Mike Pence to invoke the 25th Amendment, where the Cabinet and the VP could remove President Trump from office.
If the Amendment isn’t invoked, House Speaker Nancy Pelosi has threatened to impeach the President for the second time in his single term administration. On Sunday, Pelosi told House Democrats that an impeachment vote could take place this week, with just nine days left before the inauguration of President-elect Biden.
And then there’s Bitcoin.
Bitcoin’s two-day drop, which saw the cryptocurrency lose about $10,000 at its lows, is the worst drop since March.
Bitcoin, on Friday, hit $42,000–a record high. Cramer said investors should continue to treat the asset like a stock.