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.

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.