Lightning Round: Zoom is doing a lot right, but it's taking them a really long time, says Jim Cramer
'Mad Money' host Jim Cramer weighs in on stocks including: Zoom, ImmunityBio, Aeva Technologies, SoundHound AI, Edwards Lifesciences and Sterling Infrastructure.
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CNBC
4 hours ago
- CNBC
Here's what is driving Tuesday's stock rally — plus, an analyst comes to Eli Lilly's defense
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. Markets: Stocks are rallying on Tuesday, overcoming yet another premarket decline like we saw Monday. The data center and AI infrastructure trade — ranging from semiconductor stocks like Nvidia and Broadcom to industrials like GE Vernova and Eaton — is powering the market higher in reaction to Meta Platform's 20-year agreement to buy nuclear power from Constellation Energy . The Club owns all these stocks, except for Constellation Energy. Meanwhile, there was no real news on the trade negotiation front. A big thing to watch on trade in the coming days is whether President Donald Trump and Chinese leader Xi Jinping do, in fact, hold a call. The White House has indicated such a conversation is likely to happen this week. Eli Lilly: JPMorgan reiterated its overweight rating and $1,100 price target on Club name Eli Lilly in a research note on Tuesday. The main takeaway from the note was that volume trends for Lilly's GLP-1 drug portfolio — Zepbound for obesity and Mounjaro for type 2 diabetes — were running ahead of JPMorgan's expectations, resulting in the analysts raising their already above-consensus revenue forecast for the second quarter. JPMorgan cited two factors behind the increased estimates: strong growth in the obesity market, with prescriptions up approximately 25% quarter over quarter, and Eli Lilly capturing nearly three-quarters of all new patient starts. Importantly, JPMorgan thinks this strong category and share growth will help Lilly's prescriptions continue to grow despite the CVS formulary change to make rival Novo Nordisk's Wegovy the preferred GLP-1 for weight loss. This goes into effect on July 1. However, according to Lilly, it is only expected to impact roughly a couple hundred thousand patients. JPMorgan also doesn't think the Novo Nordisk and CVS deal will lead to a GLP-1 price war. The script trends and JPMorgan's belief that Lilly can offset any CVS headwind is very encouraging — especially on the CVS angle because that bit of news has been a huge overhang on Lilly shares ever since it was announced May 1. The broader pharmaceutical group has also been under pressure due to uncertainty tied to possible sectoral tariffs and drug pricing regulation. Lilly stock had fallen more than 20% in the month of May before mounting a modest rally in recent days. We added to our Lilly position a few weeks ago at around $715 per share. Before Eli Lilly reports second-quarter earnings in August, the next major event is the 2025 American Diabetes Conference, taking place between June 20 to June 23. There are expected to be several high-profile data readouts and presentations at the conference. In a separate note by JPMorgan, the analysts said investors should watch out for the full late-stage trial results from Eli Lilly's oral GLP-1 orforglipron. Eli Lily shares surged in April after GLP-1 pill was successful in a late-stage trial for type 2 diabetes, potentially paving the way for Food and Drug Administration approval in early 2026. Similarly, another readout to watch is more complete trial data for Novo Nordisk's CagriSema, which is a combination of an amylin analog called cagrilintide along with semaglutide, the active ingredient behind Wegovy and Ozempic. It targets fat loss and was thought to be Novo's next-generation product to follow up Wegovy. However, its preliminary trial results disappointed earlier this year. Amgen is also expected to release its mid-stage trial data on MarTide, which is a once-monthly GLP-1 injection. Finally, JPMorgan said we could see some data on one of Elil Lilly's next-gen weight loss drugs, bimagrumab. That was one of the assets that Lilly acquired as part of its acquisition spree in 2023 , and muscle mass preservation is one of its distinguishing features. Up next: Club name CrowdStrike reports after the closing bell on Tuesday. The LSEG consensus estimate is for revenue of $1.10 billion and EPS of 65 cents. We expect management will reaffirm its outlook that net new annual recurring revenue growth will reaccelerate in the second half the fiscal year, driven by strong adoption of the Falcon Flex platform and the expiration of the Customer Commitment Package incentive program. Other companies report are Hewlett Packard Enterprise and Asana . Thor Industries and Dollar Tree report before the opening bell on Wednesday. On the economic data side, there's weekly mortgage applications, the ADP private employment report, and ISM's look at the services industry. (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.
CNBC
4 hours ago
- CNBC
CrowdStrike vs. Palo Alto Networks — why Wall Street values these stocks so differently
Here's our Club Mailbag email investingclubmailbag@ — so you send your questions directly to Jim Cramer and his team of analysts. We can't offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries. This week's question: When I look at the forward P/E ratio of CrowdStrike, I wonder if this isn't too elevated when compared to PANW? Thanks, Joao There is no doubt that CrowdStrike carries a demanding price-to-earnings multiple of 125 times next 12-month earnings-per-share estimates versus its cybersecurity peer Palo Alto Networks ' cheaper forward P/E of 54. However, whether CrowdStrike's P/E is "elevated" compared to Palo Alto Networks is subjective and comes down to what you, the investor, want to pay for future earnings. Both are Club names. The price-to-earnings ratio is a standard way to gauge whether a stock is undervalued, fairly valued, or overvalued when compared to historical performance, industry peers, growth rate, or the broader market. The P/E ratio is calculated by dividing a stock's current share price by earnings per share (EPS). While there are many different ways to look at P/Es, the two most common are on a trailing 12-month basis (actual EPS for the past four quarters) and a forward 12-month basis (estimated EPS for the next four quarters). We prefer forward P/Es because we're more interested in where earnings are going rather than where they've been. We want to weed out companies that are not growing from our investment choices. A higher P/E means investors are willing to pay more for each dollar of earnings, usually because they expect to see faster growth in the future. So, in the case of CrowdStrike versus Palo Alto Networks, what the market is telling us is that investors are willing to pay much more for the former's earnings. That dynamic is reflected in the incredible appetite for CrowdStrike shares, which have gained more than 40% year to date and hit an all-time intraday high of $484 on Tuesday. It will be put to the test after the closing bell when CrowdStrike reports earnings. Palo Alto stock has been no slouch this year — increasing more than 8% year to date and outperforming the S & P 500 's gain in 2025 of roughly 1.5%. CRWD PANW YTD mountain CrowdStrike vs. Palo Alto Networks YTD Investors are paying a premium for CrowdStrike because they believe it's growing faster and has more potential. CrowdStrike is primarily a software subscription model, and investors tend to pay up more for these kinds of recurring sales because they lead to higher margins over time. Palo Alto is a mix of hardware, which tends to be more cyclical and subject to lower multiples, and software. The company has been making strides in its focus on platformization — being a one-stop shop for all cybersecurity needs. To be sure, neither stock is particularly cheap when layering growth expectations, according to the PEG ratio, which takes the P/E and divides it by a company's projected long-term earnings growth rate. Based on the next three years of earnings estimates, we calculated a three-year earnings compounded annual growth rate (CAGR) estimate of 16.6% for CrowdStrike and 11.9% for Palo Alto. That translates to PEG ratios of 7.5 for CrowdStrike and 4.5 for Palo Alto. As a general rule, a PEG ratio of 1 or lower indicates getting good value for future growth. On the high side, a PEG of 2 or above suggests paying up for future growth. Yes, both stocks are expensive by this measure, but these two leaders in cybersecurity have earned this premium over time. Cybersecurity has proven to be one of the most attractive sub-sectors of tech to invest in because it is mission-critical for organizations of all sizes. The secular growth characteristics and software aspect make it even more appealing. Bottom line Jim Cramer does not prefer CrowdStrike over Palo Alto Networks — both are long-term holdings in the portfolio and leaders in the cybersecurity industry. When we initiated CrowdStrike in October 2024, we viewed it as a turnaround following a botched software update that touched off a global IT outage in July 2024. We thought the risk was manageable after CEO George Kurtz fought to reassure clients. The company did not lose a lot of business. Jim has said that Palo Alto Networks' platformization strategy under CEO Nikesh Arora remains one of the great secular growth stories of all time. The Club started a position in February 2023. (Jim Cramer's Charitable Trust is long PANW, CRWD. 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
6 hours ago
- Yahoo
Kate Hudson says Mindy Kaling sent 'Running Point' notes from hospital bed: 'Isn't Mindy literally in labor?'
Mindy Kaling doesn't let anything stop her from getting the job done right — including giving birth! During a panel at an Emmy FYC event for Netflix's comedy series Running Point on Friday, star Kate Hudson gushed about how the show's co-creator proved her dedication to their work, even at her most fraught moments. "I have to say, I've fallen in love with this woman," Hudson said of Kaling, who also executive-produced the show. "And she's just not only so brilliant, but so trusting ... she puts the best team together," she said, per PEOPLE. Hudson, who plays a woman who's abruptly appointed leader of her family's pro basketball team in the series, recalled that Kaling was even working from her hospital bed after quietly welcoming her third child in February of 2024. "And she was pregnant. We had a script, like our first table read. She's on Zoom," the actress shared. "She then has the baby and is sending notes like an hour after she has the baby. I was like, 'Isn't Mindy literally in labor?'" It was all proof to Hudson that the Velma creator is "a powerhouse" that "delivers what she says she's going to deliver." The Almost Famous alum isn't the only star who has praise for Kaling. Brenda Song, who also stars on Running Point as Isla's formidable bestie and Waves chief of staff Ali Lee, previously told Entertainment Weekly that the mother of three emboldened an uncertain Song to "come with us, trust us." "I was like, I will follow you blindly," Song shared. The mother of two and fiancé of fellow actor Macaulay Culkin said the experience reaffirmed the spark she felt working on Gia Coppola's The Last Showgirl. "Working with such incredible, supportive, talented people has really re-energized me and reminded me why I love doing what I do so much." Kaling created the sports comedy with Elaine Ko, Ike Barinholtz, and David Stassen. The show focuses on Hudson as Isla Gordon, who leads the L.A. Waves, a Lakers-like basketball team with an illustrious reputation, after her brother Cam (Justin Theroux) becomes embroiled in a drug scandal. Long overlooked by her brothers (which also include Drew Tarver and Scott MacArthur) and late father, the ambitious and sports-savvy Isla must prove she's right for the job. She has to find a way to win respect and a championship. Netflix renewed the show for a second season earlier this year. "It was a completely new experience," Hudson told EW in February about making the series. "I'd never been on a show where you do so much in one day. You would shoot a scene from two completely different episodes. I was like, 'This is a whole new world.' But we had such an amazing team of people, and oh my God, we just laughed so much." Running Point is streaming on Netflix. Read the original article on Entertainment Weekly
