CNBC's Jim Cramer said on Tuesday that he feels Wall Street's reaction to Goldman Sachs' fourth-quarter earnings was exaggerated, creating a buying opportunity for investors.
"Go ahead, wait until Morgan Stanley disappoints tomorrow ... or, I do not know, the Bailey building and the loan; wait until it collapses," said the "Mad Money" host, referring to the bank in the fictional film, "It's a wonderful life."
"Or you can take my approach and consider that Goldman Sachs is a place where it's almost impossible to get a job, a place that offers great proprietary advice that companies have always paid a premium for ... and right now you can get this stock for $ 70 less than two and a half months ago, "Cramer continued. "I think it's stolen."
Shares of Goldman Sachs fell 7% on Tuesday, closing at $ 354.40 apiece. It reached a record high of $ 426.16 on November 2nd.
While the investment bank faced a jump in operating costs and a slowdown in stock trading earnings in its 4th quarter, Cramer said Goldman Sachs had record full-year results for a number of metrics, including net sales and earnings. It also saw record-breaking consumer and wealth management revenues, noted Cramer, who began his Wall Street career at Goldman Sachs about four decades ago.
"If you consider investing as owning companies, then right now what you're seeing is Goldman Sachs, the leading investment bank selling for a little less than six times last year's earnings because it reportedly can not repeat the fantastic year, it just reported, "Cramer said.
Cramer said, however, that he disagrees with that skepticism because "that's what the bears say every year and and they can make mistakes again."
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