Every weekday, the CNBC Investing Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET, providing insights and analysis on the stock market’s performance. In Wednesday’s session, several notable events unfolded.
The S&P 500 managed to gain traction, reversing earlier losses as the day progressed. The broader market was initially weighed down by a decline in the technology sector, particularly driven by Microsoft. The company’s shares fell by 2% following a report from The Information, which indicated that Microsoft had reduced its sales quotas for AI software. However, a spokesperson for Microsoft clarified to CNBC that there had been no changes made to sales targets. In the face of this tech weakness, investors appeared undeterred by signals of a slowdown in the U.S. labor market, particularly after ADP’s November report revealed greater-than-expected job cuts among private companies. Jim Cramer remarked, “The market is taking its cue from interest rates, not necessarily from tech.”
In another focus of the meeting, Jim Cramer highlighted that the decline in Amazon’s stock presents a buying opportunity for new investors. Amazon’s recent announcement of custom chips and strengthened partnership with Nvidia at AWS’s annual cloud computing conference was noteworthy. Cramer had previously been skeptical about Amazon’s advancements in technology but indicated that he was reconsidering his stance, stating, “I was prepared to think that these tools didn’t matter. I was prepared to think that maybe they’re falling behind because they’re not doing enough in video. I’m scrapping that whole thesis.”
The discussion also touched upon Club holding CrowdStrike, whose shares were down nearly 2% despite reporting a strong earnings performance the previous evening. Cramer reiterated the stock’s attractiveness for buyers, affirming the Club’s buy-equivalent 1 rating on CrowdStrike and raising its price target from $520 to $550 per share. Additionally, CrowdStrike CEO George Kurtz is expected to appear on “Mad Money” later in the day.
In the rapid-fire segment of the livestream, Cramer briefly addressed various stocks, including Marvell Technology, Macy’s, Dollar Tree, American Eagle Outfitters, and Okta.
Subscribers to the CNBC Investing Club receive notifications before any trades are executed, as Cramer implements a waiting period to ensure informed investment decisions. The process includes a 45-minute wait after sending a trade alert and a 72-hour period after discussing a stock on CNBC TV before executing any trades.
The overview of the Investing Club highlights that the provided information is subject to terms and conditions, and there is no fiduciary duty arising from the information shared. Investors are reminded that specific outcomes or profits cannot be guaranteed.
