Jim Cramer: This Financial Stock Is A Buy, Core Scientific Is A 'Very Overvalued Situation'

On CNBC's “Mad Money Lightning Round,” Jim Cramer recommended buying Ally Financial Inc. ALLY.

On July 17, Ally Financial posted stronger-than-expected quarterly earnings results.

Cramer said he is going to hold off from recommending Snowflake Inc. SNOW. “It's kind of like the long knives are out for those guys right now,” he added.

On Aug. 15, Wells Fargo analyst Michael Turrin downgraded the rating for Snowflake from Overweight to Equal-Weight and lowered the price target from $200 to $130.

When asked about Royalty Pharma plc RPRX, he said, “I always thought there was going to be more to this stock than there has been. It's really been a bit of a bust.”

On Aug. 8, Royalty Pharma reported worse-than-expected second-quarter financial results. The company reported quarterly earnings of 96 cents per share which missed the analyst consensus estimate of 99 cents per share. The company reported quarterly sales of $537.00 million which missed the analyst consensus estimate of $628.26 million.

Core Scientific, Inc. CORZ is a “very overvalued situation, principally because of the fact that it's never made any money. But it is another play on crypto. If you like crypto, buy crypto.”

On Aug. 14, Core Scientific announced that it increased its offering of convertible senior notes from $350 million to $400 million. The company has also given initial purchasers the option to buy up to an extra $60 million in notes.

Price Action:

• Snowflake shares fell 0.2% to settle at $127.05 on Thursday.
• Royalty Pharma shares rose 2.9% to close at $27.41.
• Core Scientific shares gained 5.2% to settle at $9.26 on Thursday.
• Ally Financial shares gained 1.3% to close at $41.61.

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