Skip NavigationMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting Club
PRO
LivestreamMenuMy top 10 things to watch Thursday, June 4 1. The S & P 500 is headed for a lower open, led by a decline in chip stocks after Broadcom failed to raise guidance enough. The Club stock is sinking 15% this morning. Investors are also monitoring developments in the Middle East as the U.S. and Iran exchanged airstrikes. The S & P 500 is on track to have its first down week in the past 10. 2. On Broadcom , the reason we sold some earlier this week is that we knew that there was nothing management could do that would be good enough to please the Street’s lofty expectations. The issue was AI conservativism. Why did Broadcom CEO Hock Tan hold back? Oppenheimer and JPMorgan hiked their price targets; we did, too. UBS analysts cut theirs. 3. CrowdStrike ‘s beat-and-raise quarter was actually great despite a nearly 10% stock drop. The key stat was a full-year guide to 27.7% growth in net new annual recurring revenue, a 5.2-percentage-point increase over prior guidance, which is extraordinary. I think that the Club stock would have sold off no matter what the company said. There are tons of price target increases on Wall Street, including our own . 4. With Anthropic announcing its intention to go public , many stocks must be sold to raise enough money to fund this massive offering, and those coming up from SpaceX and OpenAI. The Street is oblivious to this fundraising problem, which I have been talking and writing about. It will take the market down. 5. Alphabet plans to sell $85 billion of stock to fund its AI buildout to beat Anthropic and OpenAI. Will fellow Club names Microsoft and Amazon try to do the same? It’s too late to beat SpaceX, which is set to debut next week. I am sure they are being pitched stock sales plans, as debt is too expensive. 6. I reiterate that Nvidia will be a source of funds here. After Computex, with the stock unable to stay higher, it will be what the institutions use to raise money to keep the valuations of Anthropic and SpaceX in the air. SpaceX is OK because of tremendous retail interest. OpenAI still needs to file its paperwork. 7. Bank stocks are very weak. I continue to think that Wells Fargo has run out of gas. Anything weak here would be a source of funds. If it were going to get big in investment banking, Wells Fargo should have been on one of these IPO deals. Instead, a lot of those are being won by Goldman Sachs , another Club name, and my alma mater. 8. Speaking about IPOs, Quantinuum is set to go public today. The quantum computing company, which is majority-controlled by Club name Honeywell , priced its offering above the expected range at $60 a share. The deal raised nearly $1.7 billion and values Quantinuum above $14 billion. 9. We have to be careful with anything that needs credit. Those stocks are headed lower. I’m talking about Club names like Capital One and Home Depot . I haven’t been pleased with either lately. We will not average down until it is obvious and clear that these struggling stocks have bottomed. 10. Five Below is the hottest retailer, and yet they mentioned a weak consumer during earnings. I have no idea why they did that, but it made people fearful after a big run. The stock is down 9% despite beating on earnings and hiking full-year profit guidance. Much better story than Dollar Tree , Dollar General , or even Ollie’s . Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at 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.Read More
About The Author
