The CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. The recent recap of key moments from Monday’s meeting included discussions on the market’s performance and key trading decisions. U.S. stocks reversed lower on Monday, marking the beginning of the second quarter of 2024. The S & P 500 has been performing well, with its fifth consecutive positive month wrapping up on Thursday. However, the recent rally has pushed the market into overbought territory, prompting the Club to consider trimming positions and selling in order to maintain discipline in overbought markets and add during oversold markets.
During the meeting, the Club sold shares of Disney shortly after the opening bell in order to rightsize the position following the stock’s big gains in the first quarter. Disney, which has underperformed for years, has shown signs of improvement thanks to CEO Bob Iger’s turnaround strategy and activist investor Nelson Peltz’s fight for board seats. Additionally, the Club trimmed Alphabet shares after they recovered from fourth-quarter earnings losses, expressing concerns about the potential disruption of the search business by AI chatbots like ChatGPT. However, the Club is not completely exiting Alphabet, as they recognize the company’s strength and potential in the AI arms race due to their strong balance sheet.
Wall Street analysts were bullish on Microsoft during the meeting, with Melius Research praising the company’s valuable AI real estate and Jefferies analysts raising the price target to $550 per share from $465. They highlighted Microsoft’s Azure cloud, OpenAI investment, and Copilot AI feature as key beneficiaries of the AI wave. Jim Cramer is particularly optimistic about Microsoft’s integration of AI into personal computing, including the new Copilot key on the Windows PC keyboard. The Club holds long positions in Microsoft, Disney, and Alphabet, among others.
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