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Each weekday, the CNBC Investing Club led by Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. This article provides a summary of key developments from Tuesday’s session.
Market Overview
The stock markets experienced gains on Tuesday, with the S&P 500 pushing toward a potential third consecutive day of increases. This positive trend seems to defy recent disappointing economic indicators, particularly a report from the Conference Board revealing a continued decline in consumer confidence for March. Additionally, in the technology sector, Alibaba’s Chairman Joe Tsai expressed concerns about a possible bubble in the AI data center expansion, citing a faster pace of production than market demand. However, Jim Cramer expressed a differing viewpoint, referencing insights from Nvidia’s GTC conference last week, where CEO Jensen Huang emphasized the ongoing need for more data centers.
Stock Updates
In a significant development, CrowdStrike was upgraded to a buy rating by BTIG, with a new price target set at $431. Analysts noted that the stock estimates might be low, especially following an outage that occurred eight months ago, granting CrowdStrike improved visibility on its forecasts. The analysts project that annual recurring revenue is expected to experience an uptick in the latter half of the year, surpassing street expectations. Jim termed this upgrade as “fantastic,” suggesting that should the stock reach the $400 mark, it may be prudent to sell some shares acquired during the recent dip in prices. Currently, the stock is trading in the high $380s.
Honeywell’s Leadership Announcement
Honeywell has revealed its leadership team for the newly branded Solstice Advanced Materials, an offshoot of its Advanced Materials segment. The company is on track for a spin-off scheduled for late this year or early 2026, with David Sewell appointed as the new CEO. Sewell, who previously served as the CEO of WestRock and held the presidency at Sherwin Williams, is considered a strong choice by Jim. Nonetheless, Jim cautioned that Honeywell may be entering a phase he refers to as “spin purgatory,” where initial enthusiasm surrounding corporate spin-offs often leads to a wait-and-see attitude from investors until the spin-off is finalized, a pattern reminiscent of the DuPont experience.
Rapid Fire Stock Review
During the session’s rapid-fire segment, Jim Cramer covered several stocks, including KB Home, McCormick, Carvana, Cloudflare, and Oklo. It is important to note that Jim Cramer’s Charitable Trust holds positions in Capital One, CrowdStrike, and Honeywell, among others.
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