Amazon is bouncing back from its earnings slide. But it’s not too late to buy the stock
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 Thursday’s key moments. Stocks jumped Thursday after a better-than-expected July retail sales report indicated consumer spending is holding up despite recession fears. This macroeconomic backdrop “is about as good as you can get,” Jim Cramer said Thursday. The latest economic data bodes well for our retail Club names. Shares of Best Buy advanced 2% Thursday after the retail reported showed an uptick in sales at electronics and appliance stores. Shares of TJX Companies and Amazon advanced more than 1.5% and nearly 4%, respectively. Amazon’s stock continues to claw back its post-earnings losses on Aug. 2, which were sparked by weak retail guidance. However, “it’s still not too late to go back into Amazon if you left it,” Jim said. We added to our position Monday . Incoming Starbucks CEO Brian Niccol is getting a hefty pay package , but he’s worth every penny. Niccol is likely to make improving Starbucks’ wait times a priority while dealing with other challenges plaguing the coffee giant, including misconceptions around its stance on the Middle East conflict. “The reason why the stock went up is because Brian can figure out this stuff better than you and I,” Jim said, referring to Starbucks’ nearly 25% surge Tuesday after Niccol’s hiring was announced. He has the capability to turnaround Starbucks just like he did with Chipotle after the company suffered through food safety issues and, more recently, allegations about shrinking portion sizes. “We do believe there’s a lot of good there” and intend to stay invested in Starbucks , Jim said. Shares of Apple rose more than 1% Thursday after Morgan Stanley analysts revised their estimate for iPhone 15 builds to the highest third-quarter level on record, signaling demand for the latest iPhone is resilient ahead of the next-generation device being unveiled in September. Morgan Stanley’s update came as a real surprise considering so much focus is on the impending iPhone 16 launch, Jim said. We remain believers that a multiyear upgrade cycle will ensue because consumers want the latest device with AI features, but this is a highly encouraging data point in the near term. (Jim Cramer’s Charitable Trust is long BBY, TJX, AMZN, SBUX, AAPL. 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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