It was a busy week of trades for the Club amid a volatile period for the stock market. Tech stocks experienced a deep sell-off Monday on the emergence of DeepSeek , a Chinese startup with an AI model that it claims is cheaper and more efficient than current models. It called into question whether artificial intelligence chip demand might need to be scaled back. That crushed Nvidia on Monday and the stock ended the week down more than 15%. After watching Nvidia all week, Jim Cramer on Thursday told Club members that he would trim the position if not restricted. “While believing Nvidia should still be ‘owned, not traded’ that does not give us license to turn a blind eye to a change in the facts. We can own Nvidia, of that there is no question,” Jim wrote. “But to own this amount of Nvidia, to me, is to ignore the possibility that tech customers will pause or bargain with Nvidia for better pricing or seek out less powerful chips from Advanced Micro Devices .” On their post-earnings conference calls this past week, Meta Platforms and Microsoft did not adjust their capital expenditure spending plans as a result of DeepSeek. That was a bit of relief. But, as Jim pointed out on Friday, Alphabet and Amazon report earnings next week — so, we don’t know the bigger, near-term capex impact until we hear from them. Here’s a cheat sheet of this week’s trades for Jim’s Charitable Trust , the portfolio used for the CNBC Investing Club. The market was overbought for most of the week, which figured into the sales we made. Friday’s selling moved it out of overbought status. On Tuesday, we did buy some shares of Eaton, which were caught up in the DeepSeek mess. Eaton is a U.S. industrial company that makes the kinds of electrical components and power management systems needed to run data centers properly. Eaton reported earnings Friday and said its data center business remains robust. Tuesday, Jan. 28 Bought 25 shares of Eaton Trust owns 300 shares of ETN Portfolio weighting: 2.68%, as of Friday Rating: 1 Price target: $375 ETN 1Y mountain Eaton 1 year Trade Alert excerpt: “Although we understand there’s plenty of uncertainty about DeepSeek and acknowledge the risks, we think this nearly 20% pullback over two days reflects a lot of downsides. While it’s likely AI costs will come down in the future, we don’t expect the pace of new data center builds to slow in the immediate term. Outside of data centers, it’s always good to remember that Eaton is at the heart of so many other megatrends like electrification, the energy transition, digitization, infrastructure spending, reindustrialization, and green regulations.” Sold 10 shares of CrowdStrike Trust owns 245 shares of CRWD Portfolio weighting: 2.67%, as of Friday Rating: 2 Price target: $400 CRWD 1Y mountain CrowdStrike 1 year Trade Alert excerpt : “We remain long-term believers in cybersecurity, which is why we own two, CrowdStrike and Palo Alto Networks in the portfolio. But with Crowdstrike shares up about 20% over the past 11 trading sessions, we would feel like pigs if we didn’t take profits on this big win. We’re downgrading the stock to our 2 rating and realizing a great 30% gain on stock purchased in October 2024.” Sold 50 shares of Danaher Trust owns 525 shares of DHR Portfolio weighting: 3.2%, as of Friday Rating: 2 Price target: $270 DHR 1Y mountain Danaher 1 year Trade Alert excerpt : Since late October, we’ve added to Danaher on five occasions — starting around $255 a share, all the way down to $230 in November and then, most recently, at around $240 just two weeks ago . The result is that we’re now carrying too much stock, and shares have climbed nearly 9% over the past month. We’ll still own plenty of stock into earnings in case Danaher offers an upbeat view of the bioprocessing market, but this sale will provide us some protection should management give a more cautiously optimistic guide. Monday, Jan. 27 Sold 75 shares of GE Healthcare Trust owns 900 shares of GEHC Portfolio weighting: 2.18%, as of Friday Rating: 2 Price target: $95 GEHC 1Y mountain GE Healthcare 1 year Trade Alert excerpt : “We’re taking advantage of the market’s rotation into health-care stocks by locking in profits in GE Healthcare. Following an up-and-down 2024, GE Healthcare shares have gotten off to a strong 2025. … With the stock trading near $90 on Monday, [however]we don’t think the risk/reward is as good as our low $80 upgrade. Therefore we are taking off some stock and moving our rating to a 2, meaning we would look to buy more shares on a pullback.” (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.
https://aiearth.us/world-news/we-trimmed-crowdstrike-danaher-gehc-and-bought-more-eaton-this-week/
Traders work on the floor of the New York Stock Exchange during morning trading on January 28, 2025 in New York City.
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It was a busy week of trades for the Club amid a volatile period for the stock market.