Cramer shares next steps for a software stock after a rare bullish call
Every weekday, CNBC Investment Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s highlights. 1. S&P 500 will start the new month. Meanwhile, the Nasdaq is still under pressure as investors take profits from semiconductor stocks including Micron, Sandisk, Nvidia and Broadcom, which posted record-breaking gains in the first half of the year. Jim Cramer said he “expects the winners to take profits” in the top 10 this morning. One hyperscaler that Jim is very excited about is Meta, which Bloomberg reported is building a new cloud business to sell excess computing power. 2. We exited our position in Nike this morning following another soft quarter report on Tuesday evening. “We lost money,” Jim said, pointing to the 40% loss on the sale. “I was passionate about believing that Nike could come back,” he added. Jim was confident that the combination of CEO Elliott Hill’s leadership and insider buying from both Hill and outgoing Apple CEO Tim Cook would help the stock as the company embarked on a difficult recovery effort that proved slower than expected. Unfortunately this didn’t go as planned. Even though the stock is at the bottom, Jim prefers to cut his losses and invest the money in another company, such as FedEx Freight, where he expects larger gains and better results. 3. Salesforce shares are up more than 5% after Guggenheim analysts upgraded the stock to buy with a $228 price target. The company says AI will definitely pressure Salesforce, but it won’t kill the company. The club had shared a similar sentiment before. But Jim said, “The rest of the business is not showing growth.” We’re encouraged by Guggenheim’s call, especially given its traditionally negative views on Salesforce. However, this does not mean that we will allocate more capital to the stock. “When you look at a stock like this you have to say two things: First, should I sell it? But second, if I had fresh money, would I buy it?” said Jim. ‘I’d rather buy Micron over Salesforce.’ 4. Stocks featured in Wednesday’s meteoric rise at the end of the video were Micron, Constellation Brands, General Mills, Lockheed Martin and Bloom Energy. (Jim Cramer’s Charitable Trust is long CRM, META, FDXF, NVDA and AVGO. See here for a full list of stocks.) By subscribing to CNBC Investment Club Jim Cramer offers a trading alert before Jim makes a trade You will receive: Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after sending the trade alert before executing the trade. AS SUCH, NO EXCLUSIVE OBLIGATION OR DUTY EXISTS OR CAN BE GUARANTEED A PARTICULAR RESULT OR PROFIT.
