I'm sticking with Salesforce because it has a great track record, says Jim Cramer
'Mad Money' host Jim Cramer talks about his take on Salesforce's recent quarterly earnings and stock performance.
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CNBC
an hour ago
- CNBC
Apple's woes deepen following Epic Games ruling. Here's where we stand on the stock now
Apple suffered a major blow in its bid to alleviate one of Jim Cramer's biggest worries about the tech giant: its legal fight with Fortnite maker Epic Games. A U.S. appeals court late Wednesday rejected Apple's plea to halt mandated changes to its App Store that the company has warned could cost it "substantial sums." "Apple's had a bad streak. This is just more negativity," Jim said Thursday. Shares of Apple fell about 0.7% in Thursday's session, trading slightly above $201 apiece. The stock is down roughly 19% so far this year. The ruling Wednesday evening marked the latest setback for Apple in its long-running legal battle with Epic Games, which first sued the iPhone maker in 2020 in an attempt to force Apple to loosen its grip on purchases in apps that utilize its iOS operating system. In late April, a U.S. district judge said Apple was violating a four-year-old ruling that required Apple to change the way it charges commissions on in-app purchases. The solution that Apple implemented in early 2024 , for the first time, allowed developers to include links to external websites where iPhone app users could put in their payment info. However, Apple still charged a 27% commission on in-app transactions that linked out for payments and told developers how these links should be presented. The judge's April ruling said Apple needed to stop those practices. Now, Apple's request to have that decision paused has been denied. Wall Street analysts say this could dent Apple's financials – albeit not by that much. For example, Morgan Stanley estimated that 2% of Apple's earnings per share, 10% of App Store revenue and 3% of overall revenue for its important services division are at risk if the ruling is upheld. The basis for those forecasts is the firm's proprietary survey from May, which found that 28% of U.S. iPhone users are "extremely likely" to circumvent in-app purchases in the App Store. Despite the Epic ruling late last month, App Store growth has remained solid in May. Net revenues for the App Store increased 9.6% year over year in May, compared with an 8% year-over-year gain in April, according to Morgan Stanley, citing Sensor Tower data. "To date, our view has been the App Store injunction is a minor risk to the Apple story / a longer-tailed risk, as changing nearly 20 years of learned consumer behavior doesn't happen overnight," the analysts wrote in a Thursday note. The firm reiterated its buy-equivalent rating on the stock. JPMorgan shared similar sentiments. The analysts projected a "moderation" in services revenue growth and an up to 3% hit to earnings per share. "Although the denial of a stay is a headwind for Apple, we continue to believe the magnitude of impact is likely to be materially lower than currently being feared by investors," wrote the JPMorgan analysts, who also have a buy-equivalent rating on shares. While Jim indicated Thursday that Apple taking a 2% to 3% hit to EPS from the Epic case is a fair assumption, he expressed frustration with the overall implications of the ruling. "I think it is outrageous that they can use Apple as the equivalent of a common carrier, a Greyhound bus," Jim said Thursday. The Apple-Epic saga is one of the reasons why the stock has become such a worrisome position in recent months, Jim explained during our May Monthly Meeting. But it is not the only threat facing Apple's services division, which has long been a big part of our investment thesis in the company. The business — home to the App Store, AppleCare, ApplePay, iCloud and content subscriptions like Apple TV+ — is coveted for the recurring nature of its revenue streams and high margins. AAPL YTD mountain Apple's year-to-date stock performance. The other big risk to Apple's services business is Alphabet -owned Google's legal feud with the Justice Department. The antitrust case threatens Google's massive annual payments to Apple in exchange for being the default search provider on iPhone and iPad devices. In 2022, that was worth $20 billion for Apple. During the May Monthly Meeting , Jim described the matter as potentially "easy money gone," adding that investors "need to be concerned." Apple's woes don't stop there, though. Jim has an Apple worry even bigger than services growth: higher tariffs on electronics imports into the U.S. Last month, President Donald Trump threatened to raise tariffs on Apple by at least 25% for iPhones not made in the U.S. That does not bode well for the Club name because it's the company's biggest money maker. Plus, it's nearly impossible for Apple to get this done in the short term as the majority of its manufacturing is done overseas. CEO Tim Cook has tried to reduce Apple's reliance on China by diversifying its supply chain and expanding production into India. It hasn't been enough to appease Trump, though. All of this comes ahead of Apple's annual developers conference, which kicks off Monday. It has historically coincided with the start of a seasonally strong period for the stock. Investors will be closely watching what Apple says about its generative artificial intelligence system, dubbed Apple Intelligence. We previously thought that the suite of AI tools would usher in a much-needed upgrade cycle for the iPhone. This hasn't been the case as the rollout of new flashy features have been staggered and delayed. Still, we're not planning to bail on Apple shares down here. While there are clearly issues hanging over the stock, there's no denying its products are among the best consumer electronics in the world. As long as people aren't trading in their iPhones and leaving the Apple ecosystem, the ability to make money off that huge user base remains intact. And that's reason enough to stay in the stock. (Jim Cramer's Charitable Trust is long AAPL. 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.
Yahoo
2 hours ago
- Yahoo
Jim Cramer has one-word response as Robinhood stock surges toward S&P 500
Jim Cramer has one-word response as Robinhood stock surges toward S&P 500 originally appeared on TheStreet. Robinhood is back in the spotlight, and it's not just traders who've noticed. CNBC's Jim Cramer had a one-word reaction on X: 'Memed.' The post came as Robinhood Markets (HOOD) hit $72.27, with pre-market data showing it climbing another 2% to $73.75. The spike follows growing speculation that Robinhood could soon be added to the S&P 500 Index — a move that would force passive investment funds to buy shares, possibly pushing the price even higher. Bank of America analysts on Wednesday named Robinhood a 'prime candidate' for the upcoming S&P 500 rebalancing, citing a meeting among investors about index changes for financial stocks. 'We expect significant buying activity from passive funds,' the report stated, noting that companies added to major indices often experience 'significantly higher interest from long-only portfolio managers.' Robinhood, which initially rose to prominence as the app of choice for retail traders during the GameStop short squeeze in 2021, has since leaned deeper into crypto. The platform now offers trading for Bitcoin, Ethereum, and a host of other cryptocurrencies, positioning itself as a simplified alternative to more advanced exchanges. Its crypto arm has grown notably over the past year as the digital asset market rebounded. With Bitcoin trading above $100,000 and meme coins exploding on Solana, Robinhood has benefited from a surge in both equities and crypto. The company reported record highs this week, not seen since its IPO frenzy nearly four years ago. Robinhood's rise mirrors that of Coinbase (COIN), another publicly traded platform that was added to the S&P 500 in May. COIN shares surged 34% the week its inclusion was announced, despite ongoing regulatory scrutiny and a major hack. Notably, the exchange agreed to acquire Deribit, the world's leading crypto derivatives exchange, for around $2.9 billion in early May. Investors are now wondering if Robinhood could see a boost similar to that of Coinbase — though some, like Cramer, are already hinting at frothy momentum. While Cramer didn't elaborate beyond 'Memed,' his tone suggests he sees echoes of meme stock mania driving HOOD's rise. Jim Cramer has one-word response as Robinhood stock surges toward S&P 500 first appeared on TheStreet on Jun 5, 2025 This story was originally reported by TheStreet on Jun 5, 2025, where it first appeared.
CNBC
2 hours ago
- CNBC
Surprising action in Wells Fargo stock, plus what may be driving Amazon higher
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market update: Stocks were volatile on Thursday, but got a lift in late morning trading after President Donald Trump said he had a "very good" phone call with Chinese President Xi Jinping. While details of the call were scarce, it appeared to ease trade tensions between the two countries and helped calm recent worries about the supply of key rare earth materials like magnets. What's moving Amazon higher?: Shares of the e-commerce and cloud giant are higher in an otherwise subdued tape. There's a couple of stories that may be driving the positive price action. One was an article in the trade publication Adweek that highlighted how advertisers are moving "millions of dollars" in budgets from Trade Desk to Amazon's demand-side platform. The story lists several reasons why advertisers are moving money over to Amazon : lower fees, a better interface, greater measurement visibility, access to exclusive live sports, Prime Video's expanding reach, and a better partnership model. We're only talking millions of dollars here, so it's nothing too impactful in the context of Amazon's broader advertising services business that is expected to do about $67 billion of revenue this year. But anything is additive, and the bigger story may be how improvements Amazon has made to its platform over the past few years are paying off. Another story that caught our eye was The Information detailing how Amazon is working on a project to develop humanoid robots that could be used to deliver packages. It's still in the testing phase and could be many years before you see robots showing up at your doorstep, but this is one example of how Physical AI , which is a term Nvidia CEO Jensen Huang increasingly describes as the next wave of AI, is advancing and will be used in the real world. Strange moves: The trading action in Wells Fargo over the past two days has surprised us. After the Fed removed the bank's $1.95 trillion asset cap Tuesday evening, the stock shot up and touched $79 in early trading but finished the session down 27 cents, closing at $75.38. The stock is down slightly again Thursday. Yes, it's true it ran in anticipation of the announcement, bringing out the "buy the rumor, sell the news" crowd. We get that. Stocks of the big banks haven't exactly roared the past two days either. But we still think the sellers are getting this wrong. The removal of the asset cap happened earlier than we anticipated, and the no-longer-constrained Wells Fargo can go play offense. The bank is now better positioned to make more money, which is why we increased our price target to $90 yesterday. Up next: Club name Broadcom reports after the closing bell on Thursday. While we expect the semiconductor and software company to report strong results and highlight continued momentum in its AI business, it's worth noting that the near-term setup isn't great given the stock's recent run to all-time highs. Broadcom shares have rallied 9% this week and are up 15% over the past 8 sessions. Lululemon , Petco , Vail Resorts , Docusign , and Rubrik also report Thursday after the close. The big economic event Friday is the monthly nonfarm payroll report. Economists estimate the economy added 130 jobs in May, according to FactSet. The jobs report is one of the most important economic releases and has the power to set the market's tone for the rest of the month. Its stakes have increased over the past few days due to concerns about the health of the labor market. Those fears resurfaced Wednesday after ADP reported private payrolls increased 37,000 in May, marking its lowest increase since March 2023. (See here for a full list of the stocks in 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.
