Jim Cramer dismisses Snap and Albemarle stocks: Here’s why these picks are off his radar

Jim Cramer, the renowned host of CNBC’s Mad Money, has raised significant concerns about Snap Inc. (NYSE: SNAP) and Albemarle Corporation (NYSE: ALB), advising investors to reconsider their positions in these stocks.

Cramer’s latest commentary reflects his bearish stance on Snap’s declining performance and his skepticism about Albemarle’s prospects amid broader industry challenges.

Cramer labels Snap ‘irrelevant’ amid plummeting shares

Snap Inc.’s stock has plunged nearly 50% in the past month, falling from around $17 on July 10th to approximately $9 in premarket trading on Tuesday.

This dramatic decline has prompted Cramer to label Snap as “not investable” and “irrelevant.”

Despite Snap’s second-quarter financial results slightly surpassing expectations, Cramer is disheartened by the company’s poor forward guidance.

The Santa Monica-based firm, valued at $15 billion, has projected earnings of up to $100 million for the current quarter, falling short of analysts’ expectations of $110 million.

Snap’s CEO, Evan Spiegel, attributed this shortfall to “legal and regulatory burdens” and a “weaker brand advertising environment” in his recent letter to shareholders.

Additionally, Snap’s lack of a dividend further diminishes its appeal to income-focused investors.

Cramer advises caution on Albemarle

In addition to Snap, Cramer has expressed reservations about Albemarle Corporation, a major player in the lithium mining sector.

Although he acknowledges Albemarle’s strong position in the lithium market, Cramer believes the company’s focus on electric vehicles (EVs) may be premature.

He cites issues such as inadequate charging infrastructure as significant barriers to the accelerated adoption of EVs.

Unlike Snap, Albemarle does offer a dividend yield of 2.13%, making it more attractive to income investors.

However, the stock has experienced a substantial decline, down 45% from its mid-May peak.

The company’s second-quarter earnings fell dramatically to 4 cents per share, well below the 53 cents per share forecasted by analysts.

This marks a significant drop from the $7.33 per share earned in the same quarter last year, reflecting broader financial struggles.

Cramer’s advice underscores his cautious approach to these stocks.

For investors considering Snap, Cramer’s remarks suggest re-evaluating their positions due to the company’s financial instability and weak future outlook.

Similarly, while Albemarle’s dividend yield might be appealing, the company’s recent financial performance and sector-specific challenges warrant a careful review.

Both Snap and Albemarle face significant hurdles that could impact their long-term performance.

Cramer’s insights provide a critical perspective for investors looking to navigate these turbulent waters and make informed decisions about their investment portfolios.

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