Cramer looks to nibble on a software stock, bail on a health-care name
Every weekday, the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments. 1. Stocks moved higher on Wednesday, driven by Big Tech. Shares of Nvidia climbed 2% after the company announced a multiyear partnership with Meta under which the Facebook parent will use millions of Nvidia chips in its data center buildout. Meanwhile, WTI crude is up 3.4% amid concerns about potential hostilities between the United States and Iran. Higher oil prices increase the cost of gasoline, transportation, and goods, affecting many Club stocks. There has been a nice move up in financial stocks after the sector’s fall last week on AI-disruption fears. The thinking has shifted from banks using AI to replace headcount to banks benefiting from AI tools to increase productivity. 2. Shares of cybersecurity company Palo Alto Networks fell 7.3% Wednesday despite delivering a better-than-expected quarter on Tuesday after the bell. The stock can’t shake off worries that AI will eat into its market share. However, CEO Nikesh Arora argued that AI will have a positive impact on Palo Alto, noting that as companies increase their use of AI, they will need more security to manage their infrastructure. While that’s a compelling case that should play out, the tailwind hasn’t shown up in earnings yet. We reiterated our buy-equivalent 1 rating but lowered our price target to $200. 3. Bristol Myers has a new FDA-approved drug called Camzyos, a “blockbuster” heart medication, that is one of the reasons why the stock is up 27% over the past three months. Key to our investment thesis, however, has been the expansion of the company’s schizophrenia drug, Cobenfy, to treat Alzheimer’s. There have been setbacks in the trials, and there have been no new updates, making it difficult to stick with the stock. Jim Cramer said recent gains mean “when we exit it, it won’t be so bad.” Jim has been looking to replace Bristol Myers with Johnson & Johnson , a former Club holding now in the Bullpen , or with another higher-quality name. 4. Stocks covered in Wednesday’s rapid fire at the end of the video were: Western Digital , Palantir , Cadence Design Systems , and Analog Devices . (Jim Cramer’s Charitable Trust is long NVDA, META, PANW, and BMY. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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