Squawk on the Street Cramer’s Morning Take: Costco 12/16/25
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Dec 16, 2025 Dive into the world of retail as insight unfolds on why a major investment club decided to trim their Costco stake. Jim Cramer reveals concerns over renewal rates and operational execution, raising eyebrows about the retail giant's future. The discussion highlights critical market dynamics and offers a candid look at investment strategies. Tune in for a blend of sharp analysis and market commentary that keeps you informed and engaged!
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Trim Winners When Execution Wobbles
- Cut position sizes when a high-multiple stock shows execution problems and rising risks.
- Jim Cramer trimmed Costco in half because renewal issues and poor management commentary increased downside risk.
Younger Online Cohorts Renew Less
- Younger online customers renew at lower rates, hurting membership-driven retailers.
- That cohort may not visit stores to see deals, reducing perceived value and renewal propensity.
Execution Issues Erode Conviction
- Poor execution at a historically strong company is noteworthy and reduces conviction.
- Cramer found the CFO's commentary pedestrian and the quarter embarrassing given Costco's track record.