Cramer weighs in on Starbucks’ ‘hack downgrade,’ — and Amazon’s dip
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. Stocks fell Wednesday following warmer-than-expected wholesale inflation data and rising oil prices due to conflict in the Middle East. Brent crude, the international benchmark, rose again after Iran said some of its energy facilities had been attacked and warned of a retaliatory missile strike. Jim Cramer called it a “one-two punch” for stocks but argued the market will rebound in the coming days once investors move past the headlines. “I feel a little more optimistic than most because I’ve seen this movie before,” he said. 2. Amazon shares tumbled nearly 2% following a Reuters report that CEO Andy Jassy expects AI to boost cloud computing revenues to $600 billion within 10 years. Investors don’t like this news because it could mean a short-term increase in AI spending. Cramer said Amazon could cut costs in other ways, such as layoffs. But any increase in Amazon’s capex is a strategic, long-term decision to increase sales of Amazon Web Services, which provides the company’s real revenue. He added: “We don’t exist. [this stock] 3. RBC Capital downgraded Starbucks shares from buy to hold-equivalent. Analysts noted high investor expectations for revenue growth and a lack of visibility into cost savings. Cramer called the call a “downgrade,” arguing that the coffee retailer’s turnaround plan under CEO Brian Niccol is on track. Shares fell more than 2%. 4. The stocks covered in Wednesday’s rapid fire at the end of the video were: Lululemon Athletica, General Mills, Williams-Sonoma, Constellation Brands, and Disney (See here for a full list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe to the CNBC Investing Club with Jim Cramer, Jim waits 45 minutes after sending a trade alert and gets it in his charitable trust’s portfolio. THE ABOVE INVESTMENT CLUB INFORMATION, TOGETHER WITH OUR TERMS AND CONDITIONS AND PRIVACY POLICY, DOES NOT EXIST OR CREATE ANY Fiduciary OBLIGATIONS OR DUTIES BY YOU. ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB DOES NOT GUARANTEE A PARTICULAR RESULT OR PROFIT.
