Jim Cramer 'Worried' About Workday, Calls Applied Digital 'A Good Spec'

On CNBC's “Mad Money Lightning Round,” Jim Cramer recommended staying away from Workday, Inc. WDAY. “I'm worried. There's a lot of companies coming for Workday, and I don't like that,” he added.

Supporting his view, Workday, on May 22, issued second-quarter sales guidance below estimates.

Cramer said although Applied Digital Corporation APLD doesn't make any money, but it's a very good spec.

The recent amended Schedule 13G filing with the SEC revealed that AI hyperscaler CoreWeave Inc CRWV has divested its entire stake in Applied Digital.

AST SpaceMobile, Inc. ASTS is straight up, Cramer said. “We've got to ring the register a little bit.”

As per the recent news, AST SpaceMobile, on June 25, announced a series of transactions that will result in the company issuing approximately 1.04 million incremental shares to the underlying shares of its 2032 convertible notes.

When asked about DocuSign, Inc. DOCU, he said, “I'm going to go with the flow and tell you it's time to sell.”

On the earnings front, DocuSign, on June 5, reported quarterly earnings of 90 cents per share, which beat the analyst consensus estimate of 81 cents. Quarterly revenue came in at $763.7 million, beating the Street estimate of $748.13 million.

“I am horrified about what's happening at Danaher DHR,” Cramer said. “This stock has been such a disappointment for me.”

Danaher, meanwhile, will webcast its quarterly earnings conference call for the second quarter on Tuesday, July 22.

Cramer said SM Energy Company SM is doing not well and recommended buying Coterra Energy Inc. CTRA in case of going with oil.

Supporting his view, Raymond James analyst John Freeman, on June 24, downgraded SM Energy from Outperform to Underperform.

Price Action:

• Applied Digital shares fell 4.8% to settle at $9.82 on Wednesday.
• AST SpaceMobile shares dipped 6.1% to close at $49.97.
• Docusign slipped 0.8% to settle at $75.01 on Wednesday.
• SM Energy shares fell 1.4% to close at24.68.
• Workday shares fell 2.4% to close at $233.46.
• Danaher shares gained 1.8% to settle at $201.00.

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