Investing Club: What Cramer is watching Thursday — Amazon splits, rising inflation, tightening cycle

Published Thu, Mar 10 20229:30 AM ESTUpdated Thu, Mar 10 202211:52 AM EST

What Cramer is watching Thursday Inflation hits 40-year high with no end in sight ... all commodities inflated by oil or labor or supply chain. Multiple compression stories of 2015-2016 ... Look for special video report today at the Investing Club , where I look back on what happened in December of 2015 and February of 2016 when we began what looked to be the next tightening cycle. Amazon (AMZN) announced a 20-for-1 stock split and doubles the buyback to $10 billion. Is this what it needs to get shares going again? Set to get cheap on earnings over next few years — never been able to call it cheap. Split makes it a candidate for Dow inclusion. Club holding Cisco Systems (CSCO) downgraded to hold from a buy at Wells Fargo. Price target cut to $65 from $70. Multiple compression and not enough new ... subscription model well-known. I think WFC has it all wrong. The numbers follow the orders. Just trying to get ahead of nothing as multiple is already low at 15 times forward earnings with a 2.7% dividend yield. Russia Boycott continues with 3M (MMM) suspending all operations and Arconic (ARNC) pausing new contracts. Ollies Bargain Outlet (OLLI) price target lowered to $45 from $55 at Wells Fargo, cites lack of fresh inventory and no signs of getting better. Lululemon (LULU) price target lowered to $425 from $475 at Baird. Assortment and supply chain issues, but really just multiple compression. Splunk (SPLK) going higher at Citi, with price target lifted to $145 from $120. Thank CEO Gary Steele, an old friend of Mad Money ... had him on last week and I think it can go to $150. Best cybersecurity after CrowdStrike (CRWD) — BTIG upgraded to buy from hold — which had a good story, and Palo Alto Networks (PANW), which had a great one. CrowdStrike up big on earnings: cyber remains a top priority ... even if spending slows, it can't afford to pullback here. Piper Sandler takes almost all of the oils up except Coterra Energy (CTRA), which is ridiculous given how much nat gas that name has ... Big price target raise is Diamondback (FANG), to $163 from $142. JPMorgan takes PulteGroup (PHM), Lennar (LEN), D.R. Horton (DHI) all down a notch, but takes up Toll Brothers (TOL) to neutral from sell, and KB Home (KBH) to buy from hold … Fatuous distinctions. Deutsche Bank likes the materials and keys on Alcoa (AA), raises price target to $90 from $65. Reflation trade. Club name Disney (DIS) hosted its investor day yesterday, says the dividend could get reinstated when the company again achieves an A debt rating. We like that the held off on reinstatement, instead focusing on building out content. Reinstatement when financials improve a positive — could draw back in the income investor cohort that stepped away during the pandemic. Campbell Soup (CPB) minor price target boost at Citi ... to $46 from $45. Boring. Stifel says use Monster Beverage (MNST) pullback as an opportunity to buy. But does have inflation (aluminum cans) and some Russia ... Truist likes Dine Brands (DIN) after analyst meeting — minor price bump. General Electric (GE) analyst day today. Sees adjusted fiscal year 2022 EPS $2.80 to $3.50 ... Street consensus at $3.34 ... so low end and will be treated that way. Evercore ISI reiterates outperform and $210 price target on Apple (AAPL), says company is "making a lot of good moves" on TV+ and that the service is misunderstood. It doesn't want to be Netflix (NFLX), focus is on scripted content and sports rights. Earlier this week Apple announced a Friday night baseball deal to host. Lyft (LYFT) is the latest to adopt fully flexible workplace policy. Another reminder that hybrid/remote work is here to stay — with wages rising, remote policy's are how you compete for talent while protecting profit margins. (Jim Cramer's Charitable Trust is long AAPL, AMZN, CSCO, DIS. 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.

Pascal Rossignol | Reuters