Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Wednesday’s key moments. 1. Stocks rose on Wednesday, led by Big Tech. Nvidia stock rose 2% after the company announced a multi-year partnership with Meta. Under the deal, Facebook’s parent company will use millions of Nvidia chips to build data centers. Meanwhile, WTI crude oil rose 3.4% on concerns about a potential hostile relationship between the US and Iran. Rising oil prices will increase the cost of gasoline, transportation and goods, impacting many club stocks. Financial stocks have seen a nice rally after the sector fell last week on concerns about AI disruption. Instead of banks using AI to replace people, the mindset has shifted to banks benefiting from AI tools to improve productivity. 2. Shares of cybersecurity company Palo Alto Networks fell 7.3% on Wednesday despite reporting a better-than-expected quarter on Tuesday after the bell. The stock cannot shake off concerns 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 stronger security to manage their infrastructure. This is a strong case for it to happen, but the tailwinds have yet to show up in the bottom line. We reiterated our rating of 1, the equivalent of a buy, but lowered our price target to $200. 3. Bristol-Myers has a new FDA-approved drug called Camzyos, a “blockbuster” heart treatment, which is one reason its stock price has increased 27% in the past three months. However, the key to our investment theme is the expansion of the company’s schizophrenia treatment Cobenfi as a treatment for Alzheimer’s disease. Trial setbacks and lack of new updates make it difficult to maintain stock. Jim Cramer said recent gains mean “if we exit, it’s not that bad.” Jim is considering replacing Bristol Myers with his former club Johnson & Johnson, who is now in the bullpen, or another higher quality name. 4. The stocks featured at the end of Wednesday’s video were Western Digital, Palantir, Cadence Design Systems, and Analog Devices. (Jim Cramer’s charitable trusts are a long one: NVDA, META, PANW, BMY. 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.
