Jim Cramer Says to Wait For Corning (GLW) to Fall Further

On September 14, Jim Cramer expressed his opinion during his Mad Money broadcast that investors should wait for Corning Incorporated (NYSE:GLW) to decline further before trimming profits on their positions or holding the current ones. He had previously advised selling the stock, but changed his stance after it fell further. Cramer criticized Corning's decision to sell up to $2 billion worth of common stock through an at-the-market offering, as he did not like such programs.

He noted that the company had entered into an agreement with Goldman Sachs for this offering, which could result in an increase in shares outstanding. Despite this new dilution, Corning's optical business showed strong demand, with optical communications sales rising 32% year-over-year to $2.07 billion and core sales increasing 17% to $4.74 billion.

However, Cramer remained cautious, as Corning's long-term growth targets depend on the adoption of newer optical technologies and the company's ability to scale those businesses. The company aims to reach a $10 billion scale-up photonics business by the end of the decade, but this will require overcoming challenges in the supply chain for certain technologies.

Hedge funds held a majority of Corning's shares, with Polar Capital being the top shareholder. Nevertheless, Cramer believed that the stock could continue to fall due to the selling program, and that other AI stocks may offer greater upside potential with less downside risk.