What the Investing Club is watching Tuesday — Nvidia loses deal, GM gets downgraded, PayPal shows sign of life

Published Tue, Feb 8 20228:53 AM ESTUpdated Tue, Feb 8 20229:05 AM EST

What the Club is looking at Feb. 8, 2022 Nvidia's attempt to buy chip designer Arm from Softbank finally ends due to regulatory challenges … $1.25 billion breakup fee … Nvidia (NVDA) shares are down pre-market … who is selling NVDA on this? I doubt there were any real shareholders who believed this deal would happen … Nvidia just filed it will retain its 20-year Arm license. DuPont (DD) does $1.08 in eps vs. $0.98 expected … The first-quarter 2022 guide looks light as they have to manage through raw material and logistics cost increases … there are moving parts to this story too, with a planned divestiture and upcoming acquisition of Rogers Corp (ROG) … 10% increase in the dividend and a new $1 billion buyback … we took the gain for the Club near $84. Peloton (PTON) cuts full-year outlook … announces CEO John Foley will step down to become executive chair and will be replaced by Barry McCarthy, former CFO of Spotify (SPOT) and Netflix (NFLX) … company plans to cut 2,800 jobs, or 20% of the corporate workforce and reduce manufacturing footprint. Sign of life: An SEC filing shows PayPal (PYPL) CEO Dan Schulman bought roughly $1 million worth of stock last Thursday (Feb. 3) at $124-$125 per share. Morgan Stanley analyst Adam Jonas downgrades General Motors (GM) to Equal-Weight, cuts price target to $55 from $75 due to 2022 guidance below his expectations and a change in SOTP (sum of the parts) valuation methodology … says 2022 is a "near peak cycle year"… long-time bear on Ford (F), increases price target by a buck to $13. Investing Club name NortonLifeLock (NLOK) said Monday night that Germany and the UK okay'd its acquisition of Avast … deal expected to close Feb. 24 ... we talked about NLOK and the importance of this deal last week and on our monthly call ... Pfizer (PFE) beats on earnings, expects a combined $54 billion in COVID-19 vaccine and antiviral sales this year. (Jim Cramer's Charitable Trust is long F, NLOK, PYPL and NVDA. 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.

Nvidia CEO Jensen Huang

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