We're booking some big profits in one stock and buying more shares in another

CNBC Finance

3 min read

We're making two trades. We are selling 20 shares of Goldman Sachs at roughly $866 each. Following Monday's trade, Jim Cramer's Charitable Trust will own 185 shares of GS, decreasing its weight in the portfolio to 4.65% from 5.11%. In addition, we are buying 50 shares of Alphabet at roughly $298. Following the trade, the Trust will own 350 shares of GOOGL, increasing its weight in the portfolio to 3% from 2.57%. We added to Goldman Sachs twice on its mid-March pullback here and here , and are already up roughly 9% on average from those purchases. GS YTD mountain Goldman Sachs YTD The combination of those additional shares and the stock's rally off its March lows pushed this position to a more than 5% weight in the portfolio. Historically, we manage the Charitable Trust in a way that prevents any single position from becoming too large, with an over 5% threshold being the general guideline for when we take action and right-size the position. This isn't a change-in-thesis downgrade, but with bank earnings coming around the corner, we're making the trade to start the week and moving our rating back to a hold-equivalent 2 . From this sale, we will realize a gain of about 55% on the stock purchased in December 2024. GOOGL YTD mountain Alphabet YTD We're taking most of the sale proceeds from Goldman to further build up and lower our average cost basis in Alphabet. The stock has been volatile over the past two months â and a few weeks ago, it was hit hard after Alphabet and Meta Platforms were found negligent in a social media addiction trial. Both have since recovered. While there's a lot of noise surrounding the so-called Magnificent Seven stocks, our positive long-term thesis regarding Alphabet's AI leadership remains unchanged. More recently, a note by analysts at Wells Fargo on March 26 highlighted how they think that Broadcom licensing TPUs to Anthropic could add an additional $2.5 billion and $7.5 billion of incremental high-margin revenue to Google Cloud in 2026 and 2027. Those figures are a drop in the bucket compared to the $470 billion and $541 billion analysts expect Alphabet to generate in those years, according to FactSet. However, this new revenue stream is representative of the compute advantages Alphabet has over its peers, and compute is the most precious commodity in the AI race. (Jim Cramer's Charitable Trust is long GS, GOOGL, AVGO. 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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We're booking some big profits in one stock and buying more shares in another

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