We’re booking profits in a stock to reduce our data center exposure

The sale will lock in a sizable gain on stock purchased in December 2023.

Skip NavigationJoin ICJoin ProLivestreamMenuShortly after the opening bell, we will be selling 50 shares of Eaton at roughly $349. Following the trade, Jim Cramer’s Charitable Trust will own 175 shares of ETN, decreasing its weighting in the portfolio to 1.6% from 2%. We’re trimming some more of our data center exposure as the group stabilizes from last Thursday’s sell-off. At our Annual Meeting on Friday, Jim expressed his intent to continue cutting our exposure to the data center buildout amid concerns about a potential slowdown following the midterm elections. Eaton reported a fantastic quarter last week, beating analyst expectations on revenue and adjusted earnings per share. By segment, orders were up 39% in Electrical Americas, 51% in Electrical Global, and 20% in Aerospace on a rolling 12-month basis. However, we’re selling some shares and locking in a sizable 47% gain on stock purchased in December 2023. This will reduce our exposure to the risk of major hyperscalers lowering their 2027 capital expenditure plans due to growing challenges in getting new data centers built. Data centers accounted for about 21% of Eaton’s sales in 2025, but that exposure will increase significantly in 2027 after the company completes the separation of its Mobility business. (Jim Cramer’s Charitable Trust is long ETN. See here for a full list of the stocks.) 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

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