Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Friday’s key moments. 1. Shares of Costco, which owns the club, fell 4.5% Friday as investors noted slower-than-expected membership growth in the retailer’s quarterly report. Jim said management’s comments on the earnings call did not reassure Wall Street that Costco can accelerate membership growth again. “When stocks are this low, you better think about the answer,” Jim says. “I wish there had been more accountability for what went wrong.” Jim said Costco remains a strong business, but the stock’s premium valuation could remain a stumbling block until the company offers a clearer path to improved growth. “I can’t tell people to buy it…because I feel the price-to-earnings ratio is too high now,” he said. 2. Dell Technologies shares rose 30% on Friday, putting the stock on pace for its best day ever after the company continued its strong quarter driven by surging demand for AI servers and data center infrastructure. Jim said the Dell results strengthen his bullish view on the club owning Nvidia, given the two companies’ close partnership in powering AI systems for hyperscalers and enterprise customers. “You should buy this,” Jim said of Nvidia, arguing that the chipmaker remains the best way to tackle AI enhancements. Jim also mentioned next week’s Computex conference. There, Nvidia CEO Jensen Huang and other industry leaders will provide on-demand updates on next-generation AI. “I still think we can win bigger with Nvidia,” Jim said. 3. Two companies in the cybersecurity club will report earnings next week: CrowdStrike and Palo Alto Networks. Both stocks are trading near highs after strong gains during the quarter, which could create a tougher picture for earnings, Jim said. Jim also reiterated his view that fears that AI will disrupt cybersecurity have proven misguided as digital threats become increasingly sophisticated. He emphasized that CrowdStrike and Palo Alto remain long-term winners. “There’s no need to do business with them because they’re a great company,” he said. 4. The stocks featured at the end of Friday’s video were Applied Materials, Honeywell, and FedEx. (Jim Cramer’s charitable trust has long included Costco, CrowdStrike, Nvidia, and Palo Alto. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you’ll 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.
