Apple, Chipotle And Eli Lilly Stocks Baffle Jim Cramer With Unusual Moves: 'Authentic Stupidity Is A Perfectly Plausible Explanation'

Jim Cramer, the host of CNBC’s “Mad Money,” expressed skepticism regarding the recent market movements of Apple Inc AAPL, Chipotle Mexican Grill, Inc. CMG, and Eli Lilly And Co LLY.

What Happened: On Wednesday, Cramer questioned the rationale behind the market’s behavior, emphasizing that not all stock movements are logical, especially during earnings season, reported CNBC.

"Each day on this front is a reminder that you can't just assume all moves on your screen are the products of any intelligence, especially during earnings season when the market's overrun by idiocy," he said.

"So, when you see some action that doesn't make sense, keep in mind that authentic stupidity is a perfectly plausible explanation, especially when it's sending down stocks that should be going higher."

He criticized the treatment of Apple stock, stating that despite initial skepticism, the launch of the Vision Pro resulted in a significant shift in sentiment. Cramer has long been an advocate of Apple and was quick to recognize the value of the new virtual reality product before its official release.

Regarding Chipotle, Cramer believes it was a mistake for investors to be cautious due to poor earnings from other fast-food chains. Chipotle’s recent report showed a 7.4% increase in restaurant traffic, defying market expectations.

However, Cramer found the market’s reaction to Eli Lilly’s recent developments particularly perplexing. Despite the pharmaceutical giant’s announcement of a promising new drug for liver ailments, the stock experienced a slow decline on Tuesday, only to finish Wednesday with a 2.89% increase.

See Also: Jim Cramer Tells Investors To ‘Find Some Room For Stocks’ Before Fed Rate Cuts: ‘You’re Gonna Be Kicking Yourself If You Insist In Parking All Your Cash’

Why It Matters: Cramer’s remarks come at a time when these companies have been in the news for various reasons. Apple’s performance in China has been a cause for concern, with Cramer himself expressing worries about the tech giant’s business in the country.

Chipotle, on the other hand, recently reported strong earnings and saw its stock rise significantly. This positive performance was in stark contrast to that of other fast-food chains, which had seen a decline in earnings.

Eli Lilly has also been in the news for its recent announcement about a potential new use for one of its drugs. The company revealed that the drug, which is currently used for weight loss and diabetes, may also be effective in treating a serious liver disease. This announcement led to a slight decline in the company’s stock, followed by a significant increase the next day.

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