Jim Cramer’s advice on Abbott Labs stock after a nearly $500 million baby formula verdict
Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Monday’s key moments. Wall Street was lower after Friday’s rebound in a wild week that featured rotations in and out of tech. It’s a busy week ahead with a Fed meeting, 14 earnings from Club names , and the government’s jobs report on the docket. Among this week’s earnings are Microsoft (after Tuesday’s close), Meta Platforms (after Wedneday’s close) and Apple and Amazon (both after Thursday’s close). Jim Cramer said Monday these are “going to be impactful situations.” Jim previewed what to expect in his Sunday column . We also completed a bunch of trades Monday morning, including one name reporting this week: Starbucks . Ahead of Apple earnings, Bloomberg reported the tech giant is delaying its artificial intelligence software features, which now will not be available when the new iPhone launches. Jim said anything that elongates what’s expected to be a robust upgrade device cycle is good, adding that the iPhone 16, expected in September, will only be just the start for AI and Apple devices. Jim also said Apple is not paying as much for AI as others as companies want to give their AI to Apple. Following a nearly $500 million verdict for the plaintiffs in a trial over allegations about the dangers of formula for premature babies, Jim called Abbott Laboratories a disaster, but the “disaster is not yet priced in” to the stock. The company has lost some $30 billion in market cap since a smaller, similar verdict went against a competitor’s brand. Jim does not think a verdict of this size against Abbott, which he criticized as “insane,” will stand. He advises investors to hold the stock for now. (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.
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