- CNBC's Jim Cramer on Wednesday advised investors not to buy shares of Mobileye just yet.
- "If you want a piece of this thing, I recommend waiting for a pullback," he said.
CNBC's Jim Cramer on Wednesday advised investors not to buy shares of Mobileye just yet.
"The stock's going to have a tough time once people realize the Fed's war on inflation is far from over. So, if you want a piece of this thing, I recommend waiting for a pullback, maybe down below $24, and then you're paying less than 20 times earnings," he said.
Shares of the self-driving car technology company jumped over 37% on Wednesday, its first day on the stock market after being spun out of Intel. The company will retain control of Mobileye, which traded publicly before Intel bought the firm in 2017.
Cramer said that he likes Mobileye's strong balance sheet and growth. The company has worked with automakers including Audi, BMW, Volkswagen, General Motors and Ford to develop advanced driving and safety features.
Fifty firms currently use Mobileye's technology across 800 vehicle models, according to the company's IPO filing.
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"In short, Mobileye's a real company with real products and, at the moment, tremendous demand for those products," Cramer said. However, its stock isn't necessarily a good fit in a market that's beholden to the Federal Reserve's aggressive interest rate hike campaign, he added.
"If you think the Fed's going to keep tightening aggressively, then it makes no sense to buy Mobileye here — just be patient and [Fed Chair] Jay Powell will give you a better entry point," he said.
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