Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Tuesday’s big moments. 1. Stock prices are little changed to start the shortened business week, with the Nasdaq, S&P 500, and Dow all trading near the flatline. The Dow and S&P 500 are coming off their fourth of the past five weeks of declines, while the Nasdaq just posted its fifth straight negative week. This decline is due to volatility in software names such as Salesforce, CrowdStrike, Palo Alto Networks, and ServiceNow. The weakness extended to blockbuster tech trading on Tuesday, with Alphabet falling 1.6%, Microsoft falling 1.2% and Meta falling 0.5%. Jim Cramer wrote two columns about the recent market pullback. One focused on the AI deal, and the other focused on maintaining trust in Nvidia despite the growing noise of competition. Nvidia stock fell more than 1% on Tuesday. 2. The two main gainers on Tuesday were Apple and Wells Fargo. Apple stock is up 1.4%, probably because Apple is considered an “AI taker.” iPhone makers don’t have to make huge capital investments to build AI models that eat up free cash flow. Instead, it partnered with Alphabet to power its AI capabilities. By comparison, Meta, Microsoft, Amazon, and Alphabet plan to spend tens of billions of dollars on AI, resulting in flat or only marginally positive free cash flow. Wells Fargo rose 1.3%, supported by strength in the financial sector. The stock is recovering from a more than 7% drop last week. 3. Amid the software decline, the stock prices of our cybersecurity stocks Palo Alto and CrowdStrike fell approximately 2% and 5%, respectively. We are undeterred as long-term demand for the company’s cybersecurity solutions remains strong. The last time we bought CrowdStrike was on February 3rd. If the stock price drops further, you might buy more. Palo Alto is scheduled to report earnings after the bell on Tuesday. The company will need to make a strong showing to dispel the narrative of AI-driven disruptive software when it comes to cybersecurity. (Jim Cramer’s Charitable Trust is long CRWD, PANW, NVDA, DHR, AAPL, WFC. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
