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    More than $200 billion erased from entire crypto market in a day as sell-off intensifies

    Watch Daily: Monday – Friday, 3 PM ET

    The price of bitcoin plunged below $26,000 on Thursday, hitting its lowest level in 16 months.
    Ether, the second-biggest digital currency, tanked below $2,000 per coin.
    The collapse of stablecoin terraUSD has led to fears of a broader market contagion.

    Bitcoin fell below $26,000 for the first time in 16 months, amid a broader sell-off in cryptocurrencies that erased more than $200 billion from the entire market in a single day.
    The price of bitcoin plunged as low as $25,401.29 on Thursday, according to Coin Metrics. That marks the first time the cryptocurrency has sunk below the $26,000 level since Dec. 26, 2020.

    Bitcoin has since pared its losses and was last trading at $28,569.25, down 2.9%.
    Ether, the second-biggest digital currency, tanked to as low as $1,704.05 per coin. It’s the first time the token has fallen beneath the $2,000 mark since June 2021. Ether was last down 8.8% at a price of $1,937.88.
    Investors are fleeing from cryptocurrencies at a time when stock markets have plunged from the highs of the coronavirus pandemic on fears over soaring prices and a deteriorating economic outlook. U.S. inflation data out Wednesday showed prices for goods and services jumping 8.3% in April, higher than expected by analysts and close to the highest level in 40 years.

    Also weighing on traders’ minds is the downfall of embattled stablecoin protocol Terra. TerraUSD, or UST, is supposed to mirror the value of the dollar. But it plummeted to less than 30 cents Wednesday, shaking investors’ confidence in the so-called decentralized finance space.
    Stablecoins are like the bank accounts of the barely regulated crypto world. Digital currency investors often turn to them for safety in times of volatility in the markets. But UST, an “algorithmic” stablecoin that’s underpinned by code rather than cash held in a reserve, has struggled to maintain a stable value as holders bolted for the exits en masse.

    On Thursday, UST was trading at about 41 cents, still well below its intended $1 peg. Luna, another Terra token that has a floating price and is meant to absorb UST price shocks, erased 99% of its value and was last worth just 4 cents.

    Read more about tech and crypto from CNBC Pro

    Investors are scared about the implications for bitcoin. Luna Foundation Guard — a fund set up by Terra creator Do Kwon — had amassed a multibillion-dollar pile of bitcoin to help support UST in times of crisis. The fear is that Luna Foundation Guard sells a large portion of its bitcoin holdings to shore up its ailing stablecoin. That’s a risky gamble — not least because bitcoin is itself an incredibly volatile asset.
    The fallout from Terra’s collapse led to fears of a market contagion. Tether, the world’s biggest stablecoin, also dropped below its $1 peg Thursday, at one point sinking to 95 cents. Economists have long feared that tether may not have the required amount of reserves to bolster its dollar peg in the event of mass withdrawals. More

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    With floods and electricity shortages, South Africa's economy is threatening to go into reverse

    The port city of Durban and the wider KwaZulu-Natal province in eastern South Africa were besieged by the country’s worst flash flooding for decades in April.
    The manufacturing PMI — having soared to a record high of 60.0 in March — slumped to 50.7 in April, its lowest reading since the violent riots following former President Jacob Zuma’s arrest in July.
    Minister of Public Enterprises Pravin Gordhan has cautioned that Eskom could resort to stage 8 load shedding, which would entail blackouts for up to 12 hours a day, in order to avert a total collapse of the country’s electricity grid.

    DURBAN, South Africa – April 16, 2022: Massive debris at the Durban harbor following heavy rains, mudslides, rain and winds in Durban. The harbour serves as a bulwark for the economy of the city of Durban.
    RAJESH JANTILAL/AFP via Getty Images

    South Africa’s economy picked up momentum in the first quarter of the year, but historic flooding in a key province and the threat of unprecedented power cuts are putting the brakes on its recovery.
    The port city of Durban and the wider KwaZulu-Natal province in eastern South Africa were besieged by the country’s worst flash flooding for decades in April, which killed hundreds and throttled freight operations at sub-Saharan Africa’s busiest port.

    The Absa/BER manufacturing PMI — having soared to a record high of 60.0 in March — slumped to 50.7 in April, its lowest reading since the violent riots following former President Jacob Zuma’s arrest in July last year.
    KwaZulu-Natal, South Africa’s second-most populous province, was also the center of the country’s worst riots since the end of apartheid.
    The S&P Global composite PMI also fell to a four-month low, and in a note last week, Capital Economics highlighted that high frequency data indicates that the recovery in mobility has stalled.
    The figures for the first quarter paint a mixed picture, according to JPMorgan economists Sthembiso Nkalanga and Sonja Keller, but point to a seasonally adjusted quarterly GDP growth of 3.5%.
    However, April’s dismal PMI showing poses downside risk to JPMorgan’s 1.5% GDP growth projection for the second quarter. Alongside the global backdrop of the war in Ukraine, soaring inflation and Chinese supply struggles, South Africa is also dealing with the domestic shocks of flooding and electricity rationing.

    Much of the decline in the manufacturing PMI was concentrated on port and manufacturing activity in KwaZulu-Natal, where manufacturing activity dropped from 60.5 in March to 39.6 in April.
    Load shedding — the deliberate shutdown of power in parts of an electricity system to prevent its failure when overburdened — scaled up significantly in April, with electricity cuts this year projected to exceed the already substantial quantities seen in 2021.

    JOHANNESBURG, South Africa: Soweto residents picket near the entrance to state entity Eskom Offices at Megawatt Park in Midrand, near Johannesburg, on June 9, 2021 due to the ongoing electricity disruptions. Eskom, on June 9, 2021 announced it will implement nationwide power cuts due to rising consumption as the cold weather sets in and breakdowns at two power plants.
    Photo by PHILL MAGAKOE/AFP via Getty Images

    Even as the floods have largely abated, electricity supply cuts pose a consistent problem for the South African economy.
    State-owned utility Eskom’s electricity availability factor — which measures the available electricity as a share of maximum amount of electricity that could be produced — has been stuck near record lows in recent weeks, noted Jason Tuvey, senior emerging markets economist at Capital Economics.
    Minister of Public Enterprises Pravin Gordhan has cautioned that Eskom could resort to stage 8 load shedding, which would entail blackouts for up to 12 hours a day, in order to avert a total collapse of the country’s electricity grid.
    “Some shocks such as the flooding are clearly outside of the government’s control but, even without these, the recovery will continue to be held back so long as issues such as those affecting the electricity sector remain unresolved,” Tuvey said.
    The International Monetary Fund is projecting real GDP growth, adjusted for inflation, of 1.9% for South Africa in 2022.
    Eskom on Thursday announced the implementation of stage 2 load shedding between 5 p.m. and 10 p.m. local time.
    “The onset of winter has seen increased demand and this will lead to capacity constraints throughout this period, particularly during the evening and morning peaks. Unfortunately, this would generally require the implementation of loadshedding during the evening peaks,” it said in a statement.
    Eskom reiterated that loadshedding is a “last resort to protect the national grid” and urged South Africans to continue using electricity “sparingly,” particularly in the early mornings and evenings.
    Possible Q2 contraction
    The government declared a state of disaster in response to the floods and has begun efforts to repair the damage.
    “Yet, we expect the April slide to reverse more slowly than the swift rebound seen after the unrest last July, given the damage to road infrastructure, as well as the delays at the ports,” JPMorgan’s Nkalanga and Keller said in their latest research note.
    “Meanwhile, energy availability is down significantly this year, raising the risks of prolonged power cuts, while the consumer resiliency that likely led the GDP growth in 1Q should fade this quarter due to a purchasing power squeeze.”
    Against this backdrop and the sensitivity of the South African economy to changes in external market conditions, including global supply chain problems, a potential growth slowdown in China and the war in Ukraine, JPMorgan sees “increased risk of slower GDP growth or even a contraction this quarter.”

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    Powell says he can't guarantee a 'soft landing' as the Fed looks to control inflation

    Fed Chairman Jerome Powell cautioned Thursday that getting inflation under control won’t be easy.
    “Nonetheless, we think there are pathways … for us to get there,” he said in an interview with Marketplace published Thursday.

    US Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington, DC, on May 4, 2022.
    Jim Watson | AFP | Getty Images

    Federal Reserve Chairman Jerome Powell warned Thursday that getting inflation under control could cause some economic pain but remains his top priority.
    Powell said he couldn’t promise a so-called soft landing for the economy as the Fed raises interest rates to tamp down price increases running near their fastest pace in more than 40 years.

    “So a soft landing is, is really just getting back to 2% inflation while keeping the labor market strong. And it’s quite challenging to accomplish that right now, for a couple of reasons,” the central bank chief said in an interview with Marketplace.
    He noted that with a tight labor market pushing up wages, avoiding a recession that often follows aggressive policy tightening will be a challenge.
    “So it will be challenging, it won’t be easy. No one here thinks that it will be easy,” he said. “Nonetheless, we think there are pathways … for us to get there.”
    The remarks were published the same day the Senate overwhelmingly confirmed Powell for a second term, a move that came nearly seven months after President Joe Biden first submitted the nomination.

    On top of the list for his second-term priorities will be to control price inflation that in April ran at an 8.3% annual rate, just off a more than 40-year high posted in March.

    The Fed last week approved a half percentage point interest rate increase that followed a quarter-point hike in March. Markets expect the rate-setting Federal Open Market Committee to hike another half-point in June and to keep increasing benchmark rates through the end of the year.

    For his part, Powell said he understands the added pain that higher rates may cause, but said the Fed needs to act aggressively.
    “Our goal, of course, is to get inflation back down to 2% without having the economy go into recession, or, to put it this way, with the labor market remaining fairly strong,” he said. “That’s what we’re trying to achieve. I think the one thing we really cannot do is to fail to restore price stability, though. Nothing in the economy works, the economy doesn’t work for anybody without price stability.”

    Stock picks and investing trends from CNBC Pro:

    Powell has come under some criticism for the Fed’s delay in raising rates and halting its bond-buying program even as inflation mounted. Moreover, at his post-meeting news conference last week, he made remarks that were interpreted as taking more aggressive steps, like a 75 basis point increase, off the table.
    He said in the Marketplace interview that he’s “not sure how much difference it would have made” to act more quickly, adding, “we did the best we could.”
    “Now, we see the picture clearly and we’re determined to use our tools to get us back to price stability,” Powell said.

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    Want to travel to space? In 2024, balloons might take you part of the way there

    Nearly half of Americans want to travel to space.
    But that means the other half doesn’t, according to a 2021 survey by ValuePenguin, one of LendingTree’s financial research websites. Nearly 40% said space travel was too dangerous, while others worried about environmental impact and costs.

    Soon there will be an option that addresses those worries, according to companies that plan to send passengers into “space” via high-altitude balloons.
    In reality, the balloons rise less than half the distance to the technical definition of space, but that’s still nearly three times higher than most commercial flights travel — and high enough to see the Earth’s curvature.
    Rather than a bone-rattling rocket launch, balloons are “very gentle,” said Jane Poynter, co-CEO at Space Perspective, which hopes to take passengers to the stratosphere in 2024.
    There are no face-contorting “high Gs,” training isn’t required and trips don’t release carbon emissions either, she said.
    The Florida-based company is using hydrogen to power its six-hour journeys, which Poynter said are going to be so smooth that passengers can eat, drink and walk around during the flight.  

    Hydrogen is being hailed as the “fuel of the future” — a potential game-changing energy source that could alter the world’s reliance on fossil fuels.
    But after a series of conversations with people in the field, CNBC Travel found a lack of consensus on its safety.

    What’s new?

    Stratospheric balloons aren’t new — they’ve been used for scientific and weather research since the early 20th century.
    But transporting groups of paying passengers in them is. 

    Former U.S. Air Force pilot Joseph Kittinger (left) and Austrian daredevil Felix Baumgartner (right) — two of a small group of people who have gone to the stratosphere via balloon — on “The Tonight Show with Jay Leno” on June 8, 2012.
    Paul Drinkwater | NBCUniversal | Getty Images

    Poynter was part of the team that helped former Google executive Alan Eustace break the world freefall record when he jumped from a stratospheric balloon nearly 26 miles above Earth.
    While Eustace hung under a balloon wearing a spacesuit, Space Perspective’s passengers will travel via a pressurized capsule, which can fit eight travelers and a pilot, she said. The capsule is backed up by a parachute system that has been flown thousands of times without fail, she said.
    “In all of the conversations that we have with people, safety is the first thing that comes up,” Poynter said during a video call from Florida’s Kennedy Space Center. “This is truly the safe way of going to space.”

    An 85-year-old ‘PR problem’

    In December 2017, a hydrogen-filled balloon exploded at the Tucson, Arizona, facilities of a stratospheric balloon company called World View Enterprises.
    At the time, Poynter was World View’s CEO. She and her business partner and husband Taber MacCallum co-founded World View in 2012. They exited the company in 2019 and formed Space Perspective the same year.

    A report by the Arizona Division of Occupational Safety and Health, obtained by CNBC under the Freedom of Information Act, stated that an on-site manager suspected “static electricity” ignited the hydrogen. According to the report, the accident occurred during a ground test, while the balloon was being deflated, and did not cause serious injuries.
    An electrostatic discharge, i.e. a spark of static electricity, that ignited flammable hydrogen gas is widely believed to have caused the Hindenburg airship disaster in 1937.
    But Peter Washabaugh, an associate professor of aerospace engineering at the University of Michigan, said hydrogen was inappropriately blamed for the Hindenburg crash.
    “The outer covering of the vehicle was flammable. It is not clear what caught fire first — the covering or the hydrogen,” he said. “The craft was being operated aggressively during a storm… I would say it was operational negligence.”
    Washabaugh said technological advances have made using hydrogen safer.   
    “Lots has changed in the last 100 years,” he said, noting that newer balloon materials “are specifically better at containing hydrogen.”

    A rendering of the inside of the Space Perspective’s “Neptune” capsule.
    Source: Space Perspective

    Robert Knotts, a former engineering officer with the U.K.’s Royal Air Force and current council member of England’s Airship Association, agreed.
    He co-authored an article in the Royal Aeronautical Society, a professional body for the aerospace community, which stated: “Modern materials and sensors could make a hydrogen airship as safe as any helium airship.”
    Mention hydrogen with either airships or balloons and “everybody’s mind goes back to the Hindenburg — that’s the picture they have,” he said, calling the incident a “major PR problem” for the gas.
    Meanwhile, hydrogen is now used to power electric cars, while airliners (“God knows how many gallons of fuel are on board”) carry inherent fire risks too, he said.

    Helium vs. hydrogen debate

    World View’s current CEO Ryan Hartman told CNBC that its space tourism balloon flights, which are scheduled to launch in 2024, will be powered by helium.  
    After noting that “our company is a very different company today,” he said: “Our decision … is purely from a perspective of wanting to do something that is as safe as possible for passengers.”
    He called the use of hydrogen to carry passengers to the stratosphere “an unnecessary risk.”
    Hartman said hydrogen is used to launch balloons when “the risk is low,” which makes sense, he said, because it’s cheaper and is a very high-quality lift gas.

    A rendering of one of World View’s space capsules, which are set to launch from spaceports near the United States’ Grand Canyon and Australia’s Great Barrier Reef in 2024.
    Source: World View

    In 2018, Poynter — World View’s CEO at the time — told CNBC that World View doesn’t use hydrogen with its balloon systems.
    But her new company, Space Perspective, is now choosing to use it to join the rapidly growing hydrogen economy, she said.
    “Helium is in very scarce supply and is needed by hospitals for tests for the very ill as well as to launch communication satellites and conduct important research,” she said. “With helium shortages already occurring, it is unsustainable to use helium for space tourism flights at scale.”
    Plus, “hydrogen has been proven to be very safe as a lift gas,” she said.

    A movement to hydrogen?

    Space Perspective’s decision is part of a larger movement to return to hydrogen, said Jared Leidich, a former employee of World View and current chief technology officer at the stratospheric balloon aerial imagery company, Urban Sky.
    “Hydrogen can absolutely be a safe gas,” he said, noting that there is “a ton” of precedent for using it in other regions of the world.
    As to whether he would ride a balloon into his stratosphere: “Absolutely,” said Leidich. Hydrogen or helium? It wouldn’t matter, he said, noting that hydrogen can make aspects of the ride safer “because it’s a more efficient lift gas, the whole system can end up being smaller, which has some cascading benefits.”
    He said he’s already booked a seat — and paid a $1,000 refundable deposit — for a Space Perspective flight.

    Knotts also said that the choice of gas “wouldn’t bother me, quite frankly.”   
    Others weren’t so sure.
    Kim Strong, an atmospheric physicist and chair of the University of Toronto’s Department of Physics, told CNBC she’d “feel safer with a helium-filled balloon.”
    But University of Michigan’s Washabaugh said he’s on the fence about riding in a stratospheric balloon.
    “It would not matter if it was H2 or He,” he said in an email. “I’m just more fond of a powered vehicle.”

    A complex transition

    Persistent talk of an impending helium shortage has caused “almost all” balloon companies Leidich works with to develop systems that are compatible with hydrogen and helium, he said.
    The Brooklyn-based stratospheric balloon imagery company Near Space Labs currently uses helium, but CEO Rema Matevosyan said it’s exploring using hydrogen in the future.   
    “The advantages of hydrogen are there. All the issues with hydrogen are there as well, and everybody knows it,” she said. “It’s going to be a very complex transition … it’s going to take research … the demand for this will also drive some of the research.”
    EOS-X Space, a Madrid-based stratospheric balloon company that is preparing to launch space tourism flights from Europe and Asia, is planning to make the switch.
    “The first flight test this next quarter will be powered by helium,” said founder and chairman Kemel Kharbachi. But “our engineers and the development and innovation team are working with hydrogen so that we can be the first before 2024 to have this technology.” 

    Risk — or even the perception of risk — will be a significant hurdle.

    Lars Kalnajs
    University of Colorado’s Laboratory for Atmospheric and Space Physics

    Others are sticking with helium.
    Jose Mariano Lopez-Urdiales, the founder and CEO of the Barcelona-based stratospheric balloon company Zero 2 Infinity, told CNBC his company’s space tourism balloon rides will use helium “of course.”
    “Our investors and clients want to avoid at all costs these kinds of fireworks,” he said via email, referencing a YouTube video showing the World View ground test balloon explosion.
    He didn’t rule out using hydrogen in the future though, saying his company could, after “a few thousand successful hydrogen flights, then little by little introduce it in a controllable way to crewed high altitude flights.”
    Lars Kalnajs, a research scientist at the University of Colorado’s Laboratory for Atmospheric and Space Physics, agreed, saying hydrogen use could be an uphill battle since stratospheric tourism is a new and unproven venture.
    “Risk — or even the perception of risk — will be a significant hurdle,” he said, “at least until the safety of the overall system is very well proven.”

    Not exactly ‘space’

    While Hartman and Poynter may disagree about which lifting gas to use, they both said stratospheric balloon rides are far safer than rocket-based space travel — and much cheaper.
    Tickets on World View’s capsule cost $50,000 per seat, while Space Perspective is currently reserving seats for $125,000. Both companies said all U.S.-based flights are sold out in 2024.
    Yet unlike Virgin Galactic, Blue Origin and SpaceX, stratospheric balloons don’t go close to space, said Kalnajs. Most balloons will travel 30 to 40 kilometers (about 19 to 25 miles) high, which falls short of the internationally recognized boundary for space — the so-called “Karman Line” — set at 100 kilometers above sea level.
    Still, it’s high enough to see to see the “iconic thin blue line” of Earth’s atmosphere, said Poynter.

    Attendees sit in a World View capsule prototype exhibited at the SXSW festival held in Austin, Texas, in March 2022.
    Source: World View

    John Spencer, the founder and president of the Space Tourism Society, said stratospheric balloons are part of the “space community.”
    “As far as I am concerned, they are providing a space experience with their balloon flights — and one many more people can experience than those who will be willing to get into a rocket ship,” he said.
    Spencer said he is a friend of Poynter and her partner, MacCallum, and is interested in taking a balloon flight with their company.
    “But I would rather see them use helium,” he said. More

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    Cramer's lightning round: I'm going to pass on Harley-Davidson

    Monday – Friday, 6:00 – 7:00 PM ET

    It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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    Harley-Davidson Inc: “We’re going to have to take a pass on it. … Even though it’s cheap, it’s not what we want.”

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    Talos Energy Inc: “It’s a little small for me, but it’ll do the job. … I think you’ll do fine in that one.”

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    AT&T Inc: “AT&T is making a comeback. … You can ride it for a couple points, not more than that.”

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    Jumia Technologies AG: “It’s too dangerous. … We’ve got to stick together and high-grade our portfolios.”

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    Snowflake Inc: “If you take a view for a Snowflake, if you take a view for a DoorDash, if you take a view for an Airbnb, then you’re not going to look at it for the next two years, then you can start buying Snowflake tomorrow morning.”

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    GoodYear Tire & Rubber Co: “Really bad previous quarter, better quarter this quarter, that’s why it sells where it is. … People do not have faith in [CEO Rich Kramer].”

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    The stocks of several electric vehicle companies surged on Thursday

    Beaten-up shares of several electric-vehicle start-ups moved sharply higher Thursday.
    Rivian Automotive, Lordstown Motors and other EV automakers saw their stocks surge.
    Many of the EV names making the biggest moves on Thursday are former “meme stocks”

    Rivian R1T all-electric truck in Times Square on listing day, on Wednesday, Nov. 10, 2021 in New York.
    Ann-Sophie Fjello-Jensen | AP

    Beaten-up shares of several electric-vehicle start-ups moved sharply higher on Thursday in wild and largely unexplained trading.
    Rivian Automotive after market close on Wednesday reported a first-quarter loss that was narrower than Wall Street had expected, and Lordstown Motors announced a crucial deal to sell its Ohio factory had closed.

    The stocks ended the day up roughly 18% and 47%, respectively.
    Here are some of the other EV stocks that made major upward moves on Thursday:

    Several companies in the group, including Lucid, Fisker, Nikola and Rivian, offered quarterly updates in recent days that came in better than Wall Street had expected and mostly reassured investors that longer-term business plans remain on track.

    That said, many of the EV names making the biggest moves on Thursday are former “meme stocks” that ran up sharply last year on intense interest from retail investors. Many have since been heavily shorted. Stocks with high short interest often soar during market rallies, as investors holding short positions move to cover by buying the stock, adding upward pressure to the move.
    Two of the most prominent meme stocks, GameStop and AMC Entertainment, were also sharply higher Thursday — at one point up double digits each — with trading in GameStop halted several times for volatility.

    Even with the sudden rally, all the EV stocks are still trading far below their 2021 highs. The tech-heavy Nasdaq Composite Index is still roughly 30% off its record high.

    Read more about electric vehicles from CNBC Pro

    Notably absent from the list of big EV movers Thursday was Tesla, industry leader in electric vehicle production. Tesla shares closed down about 1% on the day.
    Traditional automakers Ford Motor and General Motors fared even worse, down 3% and over 4%, respectively, after Wells Fargo analyst Colin Langan cut the bank’s ratings on both to “underweight” late Wednesday night.
    Used-car network Carvana, another heavily shorted stock, closed up almost 25% after being up over 40% at one point Thursday morning.

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    Enterprise and desktop PCs still ‘a healthy market' as personal PCs see slowdown, says Micron CEO

    Monday – Friday, 6:00 – 7:00 PM ET

    Micron chief executive Sanjay Mehrotra told CNBC’s Jim Cramer on Thursday that the market for enterprise and desktop PCs remains healthy despite the personal PCs market experiencing a slowdown.
    “It’s not like anything is falling off the cliff,” Mehrotra said in an interview on “Mad Money.”

    Micron chief executive Sanjay Mehrotra told CNBC’s Jim Cramer on Thursday that the market for enterprise and desktop PCs remains healthy despite the personal PCs market experiencing a slowdown.
    “It’s not like anything is falling off the cliff,” Mehrotra said in an interview on “Mad Money.”

    “Yes, while consumer PCs lately are not experiencing the same kind of growth where they experienced in [the] last two years … enterprise PCs and desktop PCs continue to be a healthy market,” he added.
    As people return to the office and to in-person learning this year, PC sales have receded. Gartner said in April that it estimates shipments of PCs slid 7.3% from a year earlier. Canalys noted a 3% dip in shipments during the first three months of this year.
    The losses come after 2021 saw a huge boom in the PC market – PC sales experienced its fastest growth in 20 years during the first quarter of 2021 and saw a 15% growth overall that year.
    The Micron CEO also chimed in on handsets, which he says have seen stabilized growth but also remain healthy.
    “With respect to handsets, in China, with certain smartphone manufacturers, their end demand due to Covid lockdowns is somewhat weak. So some inventory adjustments by certain handset manufacturers in China [have been made],” he said. “What is important is, overall handsets … continues to be a large market,” he added.

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    Jim Cramer says investors shouldn’t allow a tumultuous market prevent them from finding ‘better opportunities’

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer on Thursday said that while investors should tread carefully as the stock market continues to be stormy, they also shouldn’t be afraid to make moves to strengthen their portfolios.
    “We are very worried about the wealth destruction, for instance, in crypto. We hang our heads on the once-great FAANG stocks. But we can never stop looking for opportunity,” the “Mad Money” host said.

    CNBC’s Jim Cramer on Thursday said that while investors should tread carefully as the stock market continues to be stormy, they also shouldn’t be afraid to make moves to strengthen their portfolios.
    “We want to be very careful to buy stocks with stories that can handle a slowdown. … A good portfolio manager never sells his winners to fund his losers, even if it’s embarrassing. You’ve got to give the losers the boot,” the “Mad Money” host said.

    The Dow Jones Industrial Average fell 0.33% on Thursday while the S&P 500 dropped 0.13%. The tech-heavy Nasdaq Composite inched up 0.06%. 
    “But we’re not complacent, either way. We are very worried about the wealth destruction, for instance, in crypto. We hang our heads on the once-great FAANG stocks. But we can never stop looking for opportunity,” he added, referring to his acronym for stocks of Facebook-parent Meta, Amazon, Apple, Netflix, and Google-parent Alphabet.
    Cramer’s comments come after cryptocurrencies saw a sell-off that shed over $200 billion from the entire market in a day. Bitcoin dropped below $26,000 for the first time in over a year.
    Ether, the second-largest digital currency, dropped below $2,000 for the first time in almost a year. The Terra project’s UST stablecoin lost around 75% of its value on Wednesday before gaining slightly while its sister token, luna, lost around 98% of its value over the last week.
    Stablecoins are seen as safe havens by digital currency investors when the market is tumultuous, but UST has teetered in value.

    In his analysis of the stock market, Cramer emphasized its unpredictability, noting that Thursday appeared to be a perfect opportunity for a rally.
    “The market should’ve bounced hard today because interest rates were down and there was no real bad news,” he said.
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    Disclaimer

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