Cramer weighs in on Starbucks’ ‘hack downgrade,’ — and Amazon’s dip
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 tumbled on Wednesday following hotter-than-expected wholesale inflation data and rising oil prices caused by the Middle East conflict. Brent crude , the international benchmark, crept back up after Iran said some of its energy facilities were attacked and warned of a retaliatory missile strike. Jim Cramer called it a “one-two punch” for stocks, but argued that the market will rebound in the coming days as investors move past the headlines. “I feel a little more bullish than most because I’ve seen this movie before,” he said. 2. Amazon shares shed nearly 2% following a Reuters report that CEO Andy Jassy expects AI to push cloud computing revenues to $600 billion in 10 years, surpassing previous estimates by more than half. Investors aren’t loving the news because it could mean a near-term increase in AI spending. Amazon could lower costs in other ways, such as through layoffs, Cramer said. However, any increase in Amazon’s capex is a strategic, long-term decision to grow sales of Amazon Web Services, the company’s real breadwinner. He added, “We’re not in [this stock] for the short term.” 3. RBC Capital downgraded Starbucks stock to a hold-equivalent rating from a buy. Analysts pointed to lofty investor expectations for revenue growth and a lack of visibility on cost savings. Cramer described the call as a “hack downgrade,” arguing that the coffee retailer’s turnaround plan under CEO Brian Niccol remains on track. Shares are down over 2%. 4. 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 the stocks in Jim Cramer’s Charitable Trust.) 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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