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CNBC's Jim Cramer said Tuesday that investors often miss a key market truth: a company can deliver excellent results and still see its stock tumble not because it did anything wrong, but because expectations were simply too high.

Several high-flying names were hit hard in the latest session, a sign, Cramer said, that markets may have gotten ahead of themselves after a strong run. He dismissed the standard Wall Street label of "profit-taking," calling it inadequate to explain the disconnect between strong fundamentals and weak stock reactions.

Cramer pointed to GE Vernova as an example. The energy company which plays a critical role in powering AI data centers reported strong order growth and p

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