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 and was announced Wednesday, “means any tech company that does a huge amount of business in China, including Apple or Micron or Intel or Skyworks or Qualcomm or Broadcom, is worth a little less today than it was yesterday,” Cramer, host of “Mad Money,” told investors.
But there’s one stock that could benefit if the arrest somehow forces Chinese officials to the table and leads them to roll back tariffs on U.S. goods, he said.
“Tesla is a winner if China is serious about lowering trade barriers, but I don’t think they’re serious about anything,” Cramer told a caller. “And if you really like Tesla, then I’ve got to tell you, you have to like the car and the stock. It is a cult stock. I’m not there. I like cloud kings that trade at big valuations. I like Amazon — big valuation. But 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.