Jim Cramer Expresses Negative Views on Multiple Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 16 2026
0mins
Source: CNBC
- Purecycle Technologies Struggles: Jim Cramer highlights that Purecycle Technologies has almost no revenue and is losing a fortune, suggesting investors should avoid this stock, indicating its unfavorable market perception.
- High Risk for Energy Vault Holdings: Cramer describes Energy Vault Holdings as a pure speculative stock that is also losing a fortune, implying its investment value is extremely low and investors should exercise caution.
- Everspin Technologies Overvalued: While Everspin Technologies is profitable, Cramer warns that its price-to-earnings ratio is at 90 times, advising investors to be careful, suggesting that market expectations for its future growth may be overly optimistic.
- Challenges for Rocket Companies: Cramer expresses a negative view on Rocket Companies, stating that even if Kevin Warsh might cut rates, the rising oil prices causing inflation make such cuts unlikely, indicating significant pressure on the company's future prospects.
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Analyst Views on RKT
Wall Street analysts forecast RKT stock price to rise
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 14.630
Low
18.00
Averages
22.18
High
25.00
Current: 14.630
Low
18.00
Averages
22.18
High
25.00
About RKT
Rocket Companies, Inc. operates a fintech platform including mortgage, real estate and personal finance businesses: Rocket Mortgage, Redfin, Rocket Close, Rocket Money and Rocket Loans. Its suite of products empowers its clients across home search, mortgage finance and servicing, title and closing, financial wellness and personal loans. It operates in two segments: Direct to Consumer and Partner Network. In the Direct to Consumer segment, clients have the ability to interact with Rocket Mortgage digitally and/or with the Company's mortgage bankers. It markets to potential clients in this segment through various brand campaigns and performance marketing channels. It provides client service and leverages its brand to strengthen its wholesale relationships, through Rocket Pro, as well as enterprise partnerships, both driving growth in its Partner Network segment. Its enterprise partnerships include financial institutions and consumer-focused companies that value its client experience.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Partnership Agreement Details: Under a February 2025 agreement, Zillow paid $100 million to become the exclusive provider of apartment rental information for Redfin, leading Redfin to exit the apartment rental market, lay off related staff, and transfer customer lists to Zillow, raising regulatory concerns about potential market monopolization.
- Market Reaction: Following the news, Rocket Companies' stock fell by 3.0%, while Zillow Group's Class C shares dropped by 3.3%, indicating investor apprehension regarding the negative impact this case may have on both companies' future operations, reflecting market sensitivity to regulatory scrutiny.
- Legal Defense Perspective: Zillow's attorney, Ryan Shores, argued that search and social media advertising are interchangeable with the listing services provided by Zillow, Redfin, and CoStar Group, emphasizing that the court can only make a final determination at trial, which highlights the complexity and potential legal disputes that could have far-reaching implications for the market.
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- Competitive Landscape Shift: As the litigation progresses, it could affect Zillow and Redfin's competitive positions in the market, especially regarding customer trust and brand reputation.
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- Market Challenges: Despite facing persistent high inflation and mortgage rate pressures, Benchmark believes Rocket's long-term opportunities extend beyond interest rate fluctuations, emphasizing its broader ambitions in the residential real estate sector.
- Debt Refinancing Impact: Rocket raised $1.5 billion this month for refinancing existing debt, which, while extending repayment timelines, also means incurring higher interest costs, highlighting the impact of rising borrowing costs on its business.
- Retail Trader Sentiment: On Stocktwits, retail sentiment around Rocket remains bullish, with a 633% surge in message volume within 24 hours, indicating optimistic investor expectations for its future performance, despite the stock's decline of over 19% year-to-date.
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- Positive Stock Performance: Rocket's stock rose 0.5% in after-hours trading, reflecting optimistic market expectations for its growth potential, with Kurnos setting a price target of $21, indicating a 35% upside from Monday's closing price of $15.50.
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- Case Progression: U.S. District Judge Anthony Trenga declined the government's request for an early ruling in the FTC's case against Zillow Group and Rocket Companies, allowing the trial to proceed on August 24 for two weeks, which may significantly influence the future market strategies of both companies.
- Partnership Agreement Details: Under a February 2025 agreement, Zillow paid $100 million to become the exclusive provider of apartment rental information for Redfin, leading Redfin to exit the apartment rental market, lay off related staff, and transfer customer lists to Zillow, raising regulatory concerns about potential market monopolization.
- Market Reaction: Following the news, Rocket Companies' stock fell by 3.0%, while Zillow Group's Class C shares dropped by 3.3%, indicating investor apprehension regarding the negative impact this case may have on both companies' future operations, reflecting market sensitivity to regulatory scrutiny.
- Legal Defense Perspective: Zillow's attorney, Ryan Shores, argued that search and social media advertising are interchangeable with the listing services provided by Zillow, Redfin, and CoStar Group, emphasizing that the court can only make a final determination at trial, which highlights the complexity and potential legal disputes that could have far-reaching implications for the market.
See More
Zillow and Rocket Companies to Face Trial in August
- Legal Proceedings: Zillow Group and Rocket Companies' Redfin are set to go to trial in August in federal court, which could significantly impact both companies' operations in the real estate market.
- Market Reaction Anticipation: The upcoming trial may prompt investors to reassess Zillow and Redfin's future business models, particularly against the backdrop of current fluctuations in the real estate market.
- Competitive Landscape Shift: As the litigation progresses, it could affect Zillow and Redfin's competitive positions in the market, especially regarding customer trust and brand reputation.
- Legal Cost Considerations: The legal expenses incurred by both companies during the trial may exert financial pressure, particularly in an environment of increasing market uncertainty.
See More
Major Rating Updates on Wall Street
- Netflix Advertising Opportunity: Loop reiterates Netflix as a buy, noting that the advertising business contributed about 240bps of growth last year and is expected to grow significantly, highlighting the company's potential in the advertising market.
- Nvidia Earnings Upgrade: CLSA raises Nvidia's price target from $300 to $360, with earnings estimates for FY27-29 increased by 21%-53%, reflecting growing confidence in a longer upcycle for the computing industry.
- Block Rating Upgrade: Piper Sandler upgrades Block from underweight to overweight with a $100 price target, citing margin upside, which indicates a positive outlook for the company's future growth.
- Comcast Value Unlocking: Deutsche Bank upgrades Comcast from hold to buy, stating that the recent spin-off will unlock value, demonstrating positive changes in the company's capital structure.
See More
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- Price Target Analysis: Benchmark has set a price target of $21 for Rocket Companies, indicating a 35% upside from its last closing price, reflecting confidence in its long-term investment potential, particularly in its strategic positioning within the real estate market.
- Market Challenges: Despite facing persistent high inflation and mortgage rate pressures, Benchmark believes Rocket's long-term opportunities extend beyond interest rate fluctuations, emphasizing its broader ambitions in the residential real estate sector.
- Debt Refinancing Impact: Rocket raised $1.5 billion this month for refinancing existing debt, which, while extending repayment timelines, also means incurring higher interest costs, highlighting the impact of rising borrowing costs on its business.
- Retail Trader Sentiment: On Stocktwits, retail sentiment around Rocket remains bullish, with a 633% surge in message volume within 24 hours, indicating optimistic investor expectations for its future performance, despite the stock's decline of over 19% year-to-date.
See More
Benchmark Initiates Buy Rating on Rocket Companies
- Market Share Growth: Analyst Daniel Kurnos from Benchmark highlights Rocket Companies' ongoing market share gains in both purchase and refinancing sectors, positioning it as a potential leader among real estate portals over the next decade, alongside Zillow.
- Diversified Revenue Sources: The acquisition of mortgage servicer Mr. Cooper has enabled Rocket to derive 70% of its Q1 2026 revenue from less rate-sensitive, recurring sources, enhancing its financial stability and risk mitigation.
- Positive Stock Performance: Rocket's stock rose 0.5% in after-hours trading, reflecting optimistic market expectations for its growth potential, with Kurnos setting a price target of $21, indicating a 35% upside from Monday's closing price of $15.50.
- Rating Comparison: Benchmark's Buy rating contrasts with SA Quant's Hold rating and aligns with the average Wall Street Buy rating, demonstrating confidence in Rocket's future performance amidst varying analyst perspectives.
See More
SpaceX Stock Plummets Post-IPO Amid Historical Trends
- Stock Decline: SpaceX's stock has dropped 23% from its post-IPO high of $202, currently trading at $156, indicating market concerns over its high valuation that may lead to decreased investor confidence.
- Historical Trends: Among the 15 largest IPOs since 2006, the average stock price has fallen 50% within the first year, suggesting that SpaceX's shares could decline further to $67.50 in the coming months, reflecting pessimistic market expectations for its future performance.
- Overvaluation: With a market value of $2 trillion and $19.3 billion in revenue over the past four quarters, SpaceX's price-to-sales ratio stands at 104, nearly double that of Palantir, the highest-valued stock in the S&P 500, indicating that such high valuations are unsustainable.
- Investment Strategy Advice: Historical data shows that investors typically underperform in large IPOs, suggesting that investors should wait for a more attractive buying opportunity rather than rushing in at high prices.
See More
