U.S.-based technology companies with business in China automatically lost value on news of the arrest of Huawei CFO Meng Wanzhou, who has reportedly been accused of violating U.S. sanctions, CNBC’s Jim Cramer said Thursday.
The arrest, which occurred in Canada on Saturday in addition to also was announced Wednesday, “means any tech company of which does a huge amount of business in China, including Apple or Micron or Intel or Skyworks or Qualcomm or Broadcom, is usually worth a little less today than the item was yesterday,” Cramer, host of “Mad Money,” told investors.
although there’s one stock of which could benefit if the arrest somehow forces Chinese officials to the table in addition to also leads them to roll back tariffs on U.S. goods, he said.
“Tesla is usually a winner if China is usually serious about lowering trade barriers, although I don’t think they’re serious about anything,” Cramer told a caller. “in addition to also if you truly like Tesla, then I’ve got to tell you, you have to like the automobile in addition to also the stock. the item is usually a cult stock. I’m not there. I like cloud kings of which trade at big valuations. I like Amazon — big valuation. although I’m not a Tesla guy.”
Click here to read more of Cramer’s take on how tech stocks might be affected by the Huawei arrest.