Jim Cramer reveals 3 stocks to buy — plus, why he is not selling the Intel plunge

The Nasdaq fell more than 2% Friday and was down 4.7% month-to-date, as post-earnings declines hit Amazon and Intel; Intel dropped 28%, while Amazon recovered from a 6% session low to about 2% lower. Jim Cramer said he would not recommend buying Intel’s decline but called Amazon a buy. Starbucks fell more than 2% despite a strong quarter and upbeat holiday outlook, while spun-off FedEx Freight rose more than 13% after top- and bottom-line beats; Cramer called Starbucks and FedEx buys, while cautioning against chasing FedEx’s nearly 3% gain.

Analysis

The useful signal is dispersion, not the broad tech downdraft: markets are distinguishing between spending that may compound cash generation and financing that raises dilution and execution questions. For Intel, an offering alongside higher investment can reset the equity story from long-term recovery to near-term funding and return-on-capital scrutiny. A sharp decline alone does not establish a bottom; verify the offering terms, capex trajectory, and whether management can show measurable operating progress. Amazon’s relative resilience thesis is plausible, but the recap supplies no segment-level evidence to establish that the selloff is mispriced. For Starbucks, margin progress and growth guidance can support estimates, yet the reaction may reflect positioning rather than a changed outlook; watch comparable sales and realized margins against guidance. FedEx Freight’s results may improve confidence in its standalone operating execution, while the spin-off can also bring price discovery, index-flow, and liquidity volatility. FedEx remains exposed to labor costs, so Freight strength should not be assumed to eliminate parent-level execution risk.

Near term (days), earnings-driven volatility and month-end flows can overwhelm company fundamentals. Over 1–3 months, guidance revisions, operating metrics, and post-spin trading liquidity matter more than a single session. Over 6–18 months, Intel’s investment returns and Freight’s ability to sustain self-help—not just beat comparisons—are the key tests. Contrarian point: the Intel decline may be underdone if financing needs persist, while the Freight surge may overstate durable improvement; neither price move is independently a fundamental catalyst.

Key Decisions for Investors

• Prefer a small, defined-risk relative-value expression: long AMZN / short INTC rather than buying either solely on the reported price move. Stage after volatility settles; reduce or exit if Amazon’s forward operating outlook weakens or Intel demonstrates improving returns on investment and funding visibility. Size for continued broad tech weakness, which can hurt both legs.
• Do not chase FDXF after the sharp post-results repricing. Track subsequent operating performance, self-help delivery, and trading liquidity over the next several weeks; consider entry only if execution holds and the price consolidates. Thesis is weakened by a reversal in operating metrics or evidence that the improvement was temporary.
• Treat SBUX as a watch/hold candidate, not an automatic dip-buy: confirm comparable-sales momentum and margin delivery in the next update before adding. A miss against the company’s growth or margin trajectory would falsify the positive setup.
• For INTC, wait for offering details and evidence that incremental spending can earn adequate returns before considering a long. Reassess if management lowers investment needs or reports sustained operating improvement; persistent dilution, rising funding requirements, or further guidance deterioration argues against the recovery thesis.