Squawk on the Street

Cramer's Morning Take: Costco 9/20/24

Sep 20, 2024

Jeff Marks, a member of the CNBC Investing Club, joins Jim Cramer to discuss compelling market insights. They delve into Costco's impressive market performance and its high valuation as it nears its earnings report. The conversation also highlights Apple's stock dynamics, emphasizing growth driven by service revenue and new products, despite facing valuation criticisms. Cramer's steadfast support for Costco shines through, showcasing it as a 'well-run' retailer.

04:04

Creator website

Episode guests

Jeff Marks

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Costco demonstrates resilience in retail investing, as its strong monthly sales and quality fundamentals outweigh concerns over high price-to-earnings ratios.

Apple's transformation towards service revenue and innovative marketing strategies underscore its sustained demand, despite analyst skepticism regarding sales orders.

Deep dives

Understanding Market Dynamics Through Costco and Apple

Costco's stock performance is highlighted as an interesting case in retail investing, demonstrating resilience and strength in its market positioning. Despite concerns about its high price-to-earnings ratio, the company's consistent strong monthly sales indicate a growing market share, particularly against competitors. Analysts anticipate upcoming earnings reports, but previous successes, such as a recent special cash dividend and membership fee increase, suggest strong fundamentals. This reflects a broader theme in investing: recognizing quality assets even when their multiples appear high.

Market Insights: Costco and Apple's Performance Outlook

6min

Cramer says he won’t sell this ‘well-run’ wholesale retailer. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake

CNBC Investing Club Disclaimer