Jim Cramer Says “GE Vernova is a Very Important Company”

GE Vernova Inc. (NYSE:GEV) is one of the stocks Jim Cramer put under the spotlight recently. Cramer said that he “immediately liked” the company’s earnings as he saw them. He commented:

“Take GE Vernova, General Electric’s old power business, which reported this morning. GE Vernova is a very important company because it’s responsible for a plurality of the energy that goes into, yes, you guessed it, the data center… I saw the numbers come out over the wire this morning, and I immediately liked them. The company showed excellent order growth as it has become integral to the need to feed these data centers an extreme amount of electricity… GE Vernova is one of the very few companies that can generate enough power to save these hungry behemoths.

While the CEO Scott Strazik didn’t raise estimates for the full year, he did paint an incredibly positive outlook on the conference call. The story only got better when CNBC’s own Seema Mody talked to Scott, and he said that he’d been in contact with OpenAI’s Sam Altman. Sounds like a big relationship could be in the offing… There’s only one problem. GE Vernova stock was already up almost 80% for the year going into the quarter. The stock was indicated up 25 points before the market opened… Next thing you know, GE Vernova is down 50 points. It wasn’t enough that you had terrific order growth.

The stock had already anticipated that and more. We didn’t get more. So what happened? [Sell, sell, sell, sell] Now you gotta ask yourself, is GE Vernova a bad company? Did it do something wrong? No, not at all. In fact, if you looked at GE Vernova stock in a vacuum, you’d want to be a buyer at these levels. A lot of people clearly agree with me because the stock erased most of its losses and finished just down $9. Okay, sounds a lot, but not on a $576 basis. No tragedy there. Stock wrong, company right.”

Photo by Robb Miller on Unsplash

GE Vernova Inc. (NYSE:GEV) provides technologies and services for power generation, transmission, and storage across gas, nuclear, wind, and renewable energy systems.

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Disclosure: None. This article is originally published at Insider Monkey.