Texas Instruments Incorporated (TXN)’s Stock Fell Because Of Management’s Tone, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Talked About As He Said Everyone Won From Trump’s Japan Deal. Texas Instruments Incorporated (NASDAQ:TXN) is one of the stocks Jim Cramer recently discussed.

Texas Instruments Incorporated (NASDAQ:TXN) is a semiconductor firm that makes and sells chips, including power management, micro-controllers, and radar products. The firm’s shares were gutted by 13% after its latest earnings report that saw Texas Instruments Incorporated (NASDAQ:TXN)’s current quarter midpoint EPS guidance of $1.48 fall short of analyst estimates of $1.50. Cramer explained why the shares dropped:

“This is one where I tell people you’ve gotta listen to the conference call. Texas Instruments’ previous quarter. They got a little bullish. And I was like oh my god! They’re like, bullish. They’re never bullish. Okay? Well they reverted to their reserved faction and the analysts one after another, are you like not bullish as you were before? I mean did we get it wrong? Are you guys getting negative? And they just, Texas Instruments is a poker face outfit. And they basically said, listen, we’re not doing any better than we thought we were doing. I think the stock is way too low. This was about tone. It had a huge move, it had a huge. move. And that whole move was based on the fact the previous quarter, they seemed to be very optimistic. And now they’re back to the usual pessimistic ways. It’s all tone, it is. It’s all tone. And it bothers me because, I think there’s people at home who’re gonna sell the stock thinking there’s something’s wrong. No, they’re fine. But their auto tariff issues got mentioned. And when you mention tariffs, it means sell. Because what you’re supposed to say, hey not affecting us. Or we’re gonna cut the amount that we thought we were gonna be hurt by tariffs. So those are the two narratives. It’s either not affected or cutting the amount that we’re worried about. So Texan was a very tough call.”

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