The top 10 is to watch on January 20
1. Alphabet (GOOGL) laid off 6% – about 12,000 workers – or what its parents and the Google Club added last year. Smart move for a company that found out that it is cyclical. Joining the wave of technology job cuts. Don’t forget Google’s self-driving unit, Waymo, will be on display at the Super Bowl.
2. GOOGL shares bucked clear back-to-back downdraft Nasdaq, and they were up more than 2.5% early on Friday. At Dow Jones Industrial Average and S&P 500 set to be mixed after three losing sessions. On Thursday, the Dow turned negative for the year.
3. Netflix ( NFLX ) jumped about 6%, also supporting the Nasdaq’s gains early Friday, after the streaming giant blew past expectations for fourth-quarter subscriber additions. Important slate content. This is how Netflix adds so many people. It figured out that the title makes the world go round. That’s a real secret.
4. Netflix founder Reed Hastings is giving up his co-CEO role but remains chairman. They will still participate. But Hastings had done the succession right. Greg Peters, creator of the ad-supported levels, will join Ted Sarandos as co-CEO. They will do well together.
5. Salesforce (CRM) down to market performance from outperform (hold from buy) in Cowen, which also reduced the price target to $160 per share from $175. Analysts high executive turnover in holding the Club; tough competition for Slack; budget pressure. Also, cost pressure. Salesforce should take $3 billion to $5 billion. Large overhang.
6. Not enough people or time yet Eli Lily (LLY) is trying an Alzheimer’s drug, but so far so good. It will come out slightly. The Food and Drug Administration denied accelerated approval for donanemab. Phase 3 trial results remain to be released in the second quarter. Donanemab is not a reason to own shares as we have made clear many times to Club members.
7. Mounjaro is a key driver for Lilly’s future. Already approved for type 2 diabetes, the drug should gain regulatory approval for the treatment of obesity as well. A weight loss indication can make the greatest drug of all time. $1700 a month and can be paid by insurance, according to Zach Reitano, CEO of the direct-to-patient healthcare company Ro, who was interviewed for “Mad Money.”
8. MKM Partners down Pinterest (PINS) to be neutral from the purchase; maintains a price target of $27 per share. Beware of near-term attitudes. A negative reading of the survey of the advertising agency owned by the parent Facebook and holding the Club Meta platform (META), YouTube Google and snap (SNAP).
9. Nordstrom (JWN) shares sank 6% early Friday after the department store chain posted strong holiday sales and cut guidance. Margin dirty pain. Off-price Rack thesis challenge. CEO Erik Nordstrom said, “Consumers are more selective with their spending because of the broader macro environment.”
10. Barclays upgrade Ralph Lauren (RL) for weights of equal weight (purchase from hold); raised his price target to $134 per share from $101. same upgrade for PVH Corp (PVH). Barclays raised PT on the company behind Tommy Hilfiger, Calvin Klein and Van Heusen to $106 from $72.
(Jim Cramer’s Charitable Trust long GOOGL, CRM, LLY, META. See here for a complete list of stocks.)
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