What Cramer is watching Wednesday — Microsoft nearly flawless, Chipotle best in show

Published Wed, Apr 27 20229:45 AM EDTUpdated Fri, Apr 29 202210:37 AM EDT

What I am looking at April 27, 2022 China and Russia, China and Russia, China and Russia — did "not as bad as feared" go away? Visa (V) posts extraordinary numbers, especially compared to three years ago. The credit-card company crushed sales and earnings estimates. And this is despite CEO Alfred Kelly suspending operations in Russia, which was its second-largest market for Visa Direct, its real-time payments network. I can't believe the strength across the whole world. Payment volume was up 135% versus three yeas ago. Cross-border volumes, excluding intra-Europe, gained 112%. United States, get this: Up 144% compared to 2019. This is, in part, the move away from cash. In 2019, cash was 59% of total payments; this quarter it was 46%. Domestic spend is incredibly strong. Pent-up travel demand is very high. Microsoft (MSFT) earnings report: hardly any flaws. You have Azure just crushing it. Windows cycle, LinkedIn doing amazing. Gaming is the only weakness—mid-to-high single-digit decline. That's due to lower engagement hours, but still higher than pre-pandemic. Software maker is best in show. Shares fell initially because people didn't wait to hear amazing CFO Amy Hood on the call with investors. There was not a line that was weak. We own it and have a great memo on this one. Guidance very strong. Took out $110 million from war in Ukraine and said lockdowns in China is reflected in guidance. Alphabet (GOOGL) — are you kidding me? Small amount of advertising from Eastern Europe is the only miss. I am astonished at how well search is doing in advertising. There is an amazing amount of demand in YouTube and it is just plain dumb to say it is weakening. Cash continues to build and is spent on company. We have a great memo on Alphabet . $70 billion in buybacks, about 5% of market cap. Chipotle (CMG) — best in show — first-quarter earnings and revenue topped Wall Street estimates. I think this restaurant chain is best set up for the new world of digital with digital-only drive-thru lanes ("Chipotlanes") and in store. Same-store sales climbed 9%. Not franchised so better. Texas Instruments (TXN) — self inflicted? No. Chinese customers. Disastrous? Only if there is no lift. Industrial and automation segment rose 20%. Personal electronics—this is really the weakness in the chain, but we know that. Multiple price target cuts. Homebuilder D.R. Horton (DHI) second-quarter beat on earnings — no let up in American Dream. Management is being very cautious and are always concerned about rates, but the company can't build fast enough ... Supply chain lengthening. Average sales price was $400,600, up 23% from prior-year quarter. General Motors (GM): I like the automaker very much here, but still won't give you a dividend and is in sales mode… Total underestimation of the company right now. On track to produce 2 million EVs in North America and China by 2025. Silverado doing well. I like the story more than others … semiconductor chips no problem versus last year, thanks to new sources ... China better than expected. Cadillac Lyriq electric vehicle order books open May 19. Are we underestimating the hurt put on by Tesla (TSLA), which fell 12% Tuesday? … It really hurt the market. Spotify (SPOT) report is better than Netflix (NFLX) — added 2 million paying customers in the first quarter despite cutting off 1.5 million subs and exiting from Russia. 3M (MMM) across-the-board price targets ... just weak, and and asterisk lawsuits. No thank you. Halliburton (HAL) price target raised to $50 from $36 at Barclays. HSBC upgrades to buy from hold. Boeing (BA) cash flow is still bad , orders not great. Mortgage rates at 13-year highs still no slowdown. No one calling for slowdown, but you do have April lock-ins. GE multiple price target cuts. Not alone in bad guidance? Estee Lauder (EL) price target lowered at Deutsche Bank, cites uncertain trajectory of China at home. United Parcel Service (UPS) was slower-than-expected DEMAND. (Jim Cramer's Charitable Trust is long BA, GOOGL, HAL, MSFT. 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.

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What I am looking at April 27, 2022

China and Russia, China and Russia, China and Russia — did "not as bad as feared" go away?
Visa