Why Cramer would rather be a buyer than a seller of this beat-up tech stock

CNBC Finance

3 min read

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 Tuesday 's key moments. 1. The S & P 500 is little changed following Monday's rally, which came after President Donald Trump said that the U.S. and Iran were in talks about a resolution to the Iran war. Iran's state media, however, denied any direct conversations between the two nations. Cramer said the market was experiencing a "hangover." Mixed headlines can be misleading, added Jeff Marks, the Club's director of portfolio analysis, who cautioned against chasing yesterday's rally. The S & P Short Range Oscillator is still in oversold territory, which suggests stocks could be due for a bounce. We're in a good position to "nibble" on quality stocks that have fallen. 2. Shares of Wells Fargo are slightly lower despite more turmoil in the private credit industry. Moody's downgraded a private credit fund run by KKR and Future Standard to junk amid rising bad loans and batches of weak earnings. Separately, Ares Management became the latest alternative asset manager to cap fund withdrawals following a surge in investor redemption requests. But investors shouldn't worry about Wells Fargo's ties to private credit through its lending relationships, Cramer said. The story is "very positive for Wells Fargo right now," Jim said. 3. Microsoft was reinstated at Bank of America with a buy rating and $500 price target. Analysts said Microsoft is at the center of the artificial intelligence supercycle, with the ability to monetize the technology across its infrastructure and applications. With Microsoft down over 20% this year, Jim said he'd rather be a buyer of the stock than a seller. Part of what will define Microsoft's future trajectory, the firm said, is the strategic and financial implications of its partnership with OpenAI. Jim will try to get those answers from OpenAI CFO Sarah Friar when she joins "Mad Money" this evening.Â "I want to understand the ownership structure [between OpenAI and Microsoft] and get some comfort there," Cramer said. "But I really want to talk about the growth, which is extraordinary." 4. Stocks covered in Tuesday's rapid fire at the end of the video were: Estee Lauder , Ralph Lauren , OpenAI, Sumitomo Mitsui , and Celsius . (Jim Cramer's Charitable Trust is long MSFT, WFC. 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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Why Cramer would rather be a buyer than a seller of this beat-up tech stock

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