Cramer Says He Cannot Rationalize Selling Intel After a 28% Drop

Jim Cramer said he could not rationalize selling Intel after a 28% Friday plunge, while acknowledging he had overlooked near-term risks as the Nasdaq fell more than 2%.

Post-earnings declines in Amazon and Intel weighed on the Nasdaq, which was down 4.7% month to date Friday morning. During the 10:20 a.m. ET (14:20 UTC) Morning Meeting, Cramer said he had focused on Intel's longer-term prospects without weighing short-term concerns enough. He pointed to a recent share offering intended to finance additional spending and CEO Lip Bu Tan's large purchase of the new shares. “Did I get fooled? I used poor judgment because I believed in the longer-term story without thinking about the short-term story,” Cramer said.

Cramer said Friday's decline was not a “clearing event.” Intel remained nearly 80% higher year to date, and he said he could not recommend buying the drop.

Amazon fell as much as 6% at its session low before recovering to a loss of about 2%. Cramer said the company's condition was stronger than the market reaction suggested.

Starbucks shares lost more than 2% after the company reported a strong quarter Thursday night and issued an upbeat holiday forecast. Portfolio director Jeff Marks said some investors may have taken profits after a recent run. Cramer said the stock matched the portfolio's need for higher growth, and Starbucks said it was about a year ahead of its margin target.

FedEx Freight (FDXF), the business spun off from FedEx, gained more than 13% after beating revenue and earnings expectations. The less-than-truckload shipping provider had struggled recently, but its results were the strongest among Thursday evening's reports. The company also offered encouraging commentary on its improvement efforts.

FedEx (FDX), the former parent, also reported a strong quarter this week. Its shares had pulled back Thursday after management discussed labor issues the night before. Cramer said he viewed FedEx favorably but might not chase its nearly 3% rise Friday.

Jim Cramer's Charitable Trust holds shares in Intel, Amazon, Starbucks, FedEx Freight and FedEx. Cramer discussed Starbucks and named FedEx among possible portfolio additions during an Oct. 8 Investing Club meeting.