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.
1. Stocks were higher to kick off the week, especially the Nasdaq, as Club name Apple (AAPL) stabilized after last week’s decline on China concerns. Jim Cramer is out in San Francisco to look at how tech companies have been doing lately and to attend Club name Salesforce’s (CRM) Dreamforce event. CEO Marc Benioff on Tuesday is set to give the keynote. Tuesday is going to be a busy day: That’s when Apple also holds its iPhone 15 event and the Alphabet’s (GOOGL) Google search trial starts. Then Wednesday and Thursday, we get the latest consumer inflation and wholesale inflation data. We’ll also be watching for any auto strikes later in the week. The current UAW labor contract expires at 11:59 p.m. on Thursday. We own Ford (F) stock.
2. Club name Meta Platforms (META) is developing a new, more powerful AI system to rival OpenAI’s most advanced model, according to The Wall Street Journal, citing people familiar with the matter. Meta is said to be building up data centers and acquiring more H100 chips from Club name Nvidia (NVDA). Meta teamed up with Microsoft (MSFT), a Club holding and a backer of OpenAI, to make the AI language model Llama 2 available on Microsoft’s Azure cloud. However, Meta plans to train the new model on its own infrastructure.
3. Oracle (ORCL) earnings are set for release after the closing bell Monday. Ahead of the numbers, Citi raised its price target to $138 per share. from $121 but kept its neutral rating. Citi expects upside primarily by Oracle Cloud Infrastructure as momentum continues. However, it argued this is of lower quality since OCI has lower margins. We disagree that this would be called lower quality as we pointed out in our Club earnings preview story last week. Deutsche Bank said its field checks remain “net constructive” but calls this the seasonally least significant quarter of Oracle’s fiscal year. While we like Oracle and look to buy more shares down the road, we recommend that investors not in the stock already wait and see what the numbers look like before taking any action.
(Jim Cramer’s Charitable Trust is long AAPL, CRM, GOOGL, F, META, ORCL. See here for a full list of the stocks.)
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