On CNBC’s “Mad Money Lightning Round,” Jim Cramer said he cannot recommend Rocket Companies, Inc. (NYSE:RKT). That’s because the Federal Reserve delivered a quarter-point rate hike last week, and a “rate hike is the worst thing for these guys.”

On the earnings front, Rocket Companies reported worse-than-expected second-quarter results on Aug. 6.

The Detroit-based homeownership platform reported quarterly earnings of 16 cents per share. It missed the Street estimate of 17 cents, according to Benzinga Pro data. Quarterly revenue came in at $2.76 billion, missing the consensus estimate of $2.82 billion.

When Companies Don’t Make Money During a Rate Cycle

Navitas Semiconductor Corporation (NASDAQ:NVTS) is a “good spec, but not a great one,” as they’re not making money, Cramer said. “I don’t like to recommend stocks in a rate cycle that aren’t making money.”

Navitas Semiconductor announced on Aug. 24 an agreement to acquire Claros, Inc. for up to approximately $232.8 million, expanding its AI data-center power portfolio.

The acquisition would add Claros’ vertical power delivery, or VPD, and integrated voltage regulator, or IVR, technologies to Navitas’ GaN and high-voltage silicon carbide portfolio.

Price Action

  • Rocket Companies shares fell 2.2% to settle at $12.29 on Friday.
  • Navitas Semiconductor shares climbed 2.6% to close at $11.43.

See More: Top Value Stocks

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