Categories: Invest

Jim Cramer regrets selling Goldman Sachs: explained here

Shares of Goldman Sachs Inc (NYSE: GS) jumped more than 2.5% on Friday morning as the U.S. lender reported stellar numbers for its fiscal third quarter that blew past the Wall Street estimates.

Cramer sees upside in Goldman Sachs to $500 a share

On CNBC’s “Squawk Box”, Mad Money host Jim Cramer called Q3 a “drop the mic quarter” for Goldman Sachs and said the stock could climb to $500.


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I should have never left Goldman Sachs. Whole countries will never make the kind of money they’re making. It’s just extraordinary. What they’ve done in the first three quarters is better than any year that Goldman has had in the history.

Cramer also lauded the bank’s partnership with Apple for Apple Card that now has 7 million users.

Q3 financial performance

Goldman Sachs reported $5.28 billion in net income for the third quarter that translates to $14.93 per share. In the same period last year, its net income was capped at $3.23 billion or $8.98 per share.

The investment bank generated $13.6 billion in net revenue versus the year-ago figure of $10.8 billion, as per the earnings press release. According to FactSet, analysts had forecast $10.14 of EPS on $11.72 billion in revenue.

Revenue from individual business segments

Other notable figures include $1.56 billion in net interest income and investment banking revenue that almost doubled to $3.55 billion. Revenue from global markets and consumer and wealth management division jumped 20% and 35%, respectively.

All numbers were “significantly” ahead of estimates and last year’s figures.

Provisions, stock buyback, and AUM

The Wall Street bank valued its provisions for bad loans at $175 million versus $278 million in Q3 of 2020. Goldman Sachs repurchased $1.0 billion of stock in the recent quarter and added $67 billion of assets under management to a total of $2.37 trillion.

Shares of the NYSE-listed bank are up 50% this year.

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