Core Viewpoint - Klarna Group (NYSE:KLAR) has experienced significant stock price declines, with a 71% drop since its IPO and a 54% decrease year-to-date, following disappointing earnings results [2]. Financial Performance - Klarna reported fourth-quarter earnings with revenue of $1.08 billion, surpassing analyst estimates of $1.07 billion, but incurred a loss per share of $0.19, which was worse than the expected loss of $0.02 [2]. - The company's US business showed strong performance, with revenue growth of 58%, driven by the Fair Financing product, which saw sales increase by 165% [2]. - This quarter marked Klarna's first instance of achieving $1 billion in sales [2]. Analyst Insights - Keefe Bruyette lowered Klarna's share price target from $52 to $45 while maintaining an Outperform rating [2]. - Jim Cramer criticized Klarna for not mentioning earnings per share (EPS) in its release, indicating a lack of focus on this important metric [3].

Core Insights - NVIDIA Corporation (NASDAQ: NVDA) is recognized as the most valuable company globally due to its advanced AI chips, with shares increasing by 41% over the past year and remaining flat year to date [1] - A significant announcement was made regarding a partnership with Meta, where NVIDIA will supply AI GPUs and CPUs, including the introduction of Grace CPUs into Meta's data centers [1] - Jim Cramer highlighted that the total cost of ownership for NVIDIA's advanced chips is lower than commonly perceived, suggesting a shift in market narrative towards NVIDIA's value proposition [1] Company Summary - NVIDIA's stock has shown a notable increase of 41% over the last year, indicating strong market performance [1] - The partnership with Meta is expected to enhance NVIDIA's presence in the data center market, complementing existing technologies like Google's TPUs [1] - Goldman Sachs maintains a Buy rating on NVIDIA with a price target of $250, reflecting confidence in the company's growth potential [1] Industry Context - The discussion around the cost of ownership for NVIDIA's chips suggests a competitive edge over AMD, as the overall platform costs may be more favorable despite AMD's lower chip prices [1] - The narrative shift in the market indicates a growing recognition of companies that create intellectual property, with NVIDIA being positioned favorably compared to others like AMD [1]

Core Insights - Meta Platforms, Inc. (NASDAQ:META) has seen its shares decline by 4% over the past year and remain flat year-to-date, indicating a challenging market environment [2] - The company recently announced a partnership with NVIDIA to utilize its GPUs for enhancing core business operations and AI training, which may signal a strategic shift towards developing its own web services [2][5] - Meta's fourth quarter earnings reported $59.9 billion in revenue and $8.88 in earnings per share, surpassing analyst expectations of $58.35 billion and $8.19, driven by Christmas traffic and AI-led efficiency improvements [2] Company Developments - The partnership with NVIDIA is aimed at boosting Meta's AI capabilities and overall business operations, suggesting a focus on technological advancement [2] - There are indications that Meta is diversifying its product offerings, including the development of a new application for sending one-time photos [2] - Jim Cramer has expressed that Meta's capital expenditure concerns may be alleviated by this partnership, hinting at a potential move towards establishing a cloud computing business [2][5]

Core Viewpoint - Amazon.com, Inc. (NASDAQ:AMZN) is experiencing a decline in share price, with a 2.9% drop over the past year and a 7.2% drop year-to-date, leading to reduced price targets from analysts [2]. Financial Performance - Bernstein has lowered its price target for Amazon from $300 to $265 while maintaining an Outperform rating, citing high capital expenditures of $200 billion as a concern despite strong operating income and growth in Amazon Web Services (AWS) [2]. - Benchmark also reduced its price target from $295 to $275, keeping a Buy rating on the shares [2]. Market Sentiment - Jim Cramer highlighted a shift in sentiment regarding Amazon's free cash flow, noting that the company has gone negative in this area, which has affected perceptions of its financial health [2][5]. - Cramer expressed that while Amazon's spending may be perceived as excessive, there is a belief that some AI stocks may offer better investment opportunities with higher returns and lower risks [3].

Company Overview - Caterpillar Inc. (NYSE:CAT) is a manufacturer of agricultural and construction machinery [2] - The company has seen its shares increase by 123% over the past year and by 26% year-to-date [2] Financial Performance - Caterpillar reported $67.6 billion in revenue for 2025, marking a 4% growth and setting a new record [2] - The Power & Energy unit generated $9.4 billion in revenue, achieving a 23% annual growth [2] Market Sentiment and Analyst Ratings - Following the earnings report, Bank of America raised the price target for Caterpillar shares to $825 from $735, maintaining a Buy rating [2] - Demand for Caterpillar's turbines is extending beyond traditional data center sectors, indicating strong market interest [2] Hedge Fund Activity - Hedge funds are actively purchasing power products from Caterpillar, contributing to the company's strong quarterly performance [3] - The demand for power generation products is noted to be surprisingly robust, which is seen as a key driver for the company's growth [2][3]

Core Viewpoint - Sandisk Corporation (NASDAQ:SNDK) has shown remarkable stock performance, with shares increasing by over 1,300% in the past six months and 136% year-to-date, driven by strong fiscal second-quarter earnings and raised guidance for fiscal year 2026 [2]. Financial Performance - Sandisk Corporation expects to earn $15.7 billion in revenue and $39.50 in earnings per share for the current fiscal year, significantly up from previous estimates of $10.9 billion and $16.21 [2]. - The company's strong earnings report has led to analysts raising their price targets, with Bank of America increasing its target to $850 from $390 and Barclays raising it to $750 from $385 [2]. Analyst Commentary - Jim Cramer highlighted the significant earnings surprise as a key factor in Sandisk's stock performance and advised investors to buy shares during the company's secondary issuance [4].

Core Viewpoint - General Mills, Inc. (NYSE:GIS) is facing significant challenges, with a notable decline in share price and a downward revision of fiscal year 2026 estimates, indicating a tough outlook for the company [2]. Financial Performance - General Mills' shares have decreased by 26% over the past year and by 2.4% year-to-date [2]. - The company has revised its annual sales drop guidance to a range of 1.5% to 2%, a shift from the previous estimate of a 1% drop to a 1% growth [2]. - Operating profit and earnings per share are now expected to decline by 16% to 20%, compared to the earlier forecast of a 10% to 15% drop [2]. Analyst Reactions - Bank of America has lowered its price target for General Mills from $61 to $55 while maintaining a Buy rating, suggesting that the current valuation reflects short-term pressures in the North American retail market [2]. - Bernstein also reduced its price target for General Mills from $54 to $53, keeping a Market Perform rating [2]. Market Commentary - Jim Cramer referred to General Mills as the "benchmark of bad," indicating a negative perception of the company's current situation [3].

Core Insights - Walmart Inc. (NASDAQ:WMT) has seen its shares increase by 29% over the past year and 9% year-to-date, reflecting strong market performance [1] - The company reported fiscal second-quarter earnings of $190.66 billion in revenue and $0.74 in earnings per share, surpassing analyst expectations of $190.43 billion and $0.73 respectively [1] - Analysts have raised Walmart's share price target, with Rothschild Redburn increasing it to $150 from $110, maintaining a Buy rating, citing digital initiatives and AI as growth drivers [1] - Jim Cramer praised Walmart's recent quarter, highlighting significant increases in advertising and membership fees, which contributed to a premium price-to-earnings multiple [2] Financial Performance - Walmart's fiscal second-quarter revenue was $190.66 billion, exceeding expectations [1] - Earnings per share for the quarter were $0.74, also above analyst estimates [1] Analyst Ratings - Rothschild Redburn raised Walmart's price target to $150, maintaining a Buy rating [1] - Telsey reiterated a Buy rating with a price target of $135 [1] Market Position - Walmart is effectively competing with Amazon in the eCommerce sector, leveraging its ability to keep prices lower for consumers [1] - Cramer expressed concerns about potential earnings misses, indicating the high stakes involved in Walmart's performance [1]

Bill Ackman turned heads when adding a large position in Meta Platforms (NASDAQ: META) to his portfolio. The billionaire investor is well known for making big, concentrated long-term bets, and he took a roughly $1.8 billion position in the social media king in Q4 to make it his fifth-largest position. In an investor presentation, Ackman called Meta "deeply discounted" for one of the "world's greatest businesses." While many investors have been critical of Meta's current aggressive artificial intelligence ...

We recently published 10 Stocks On Jim Cramer’s Mind & His Thoughts On Enterprise AI.  Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks on Jim Cramer's mind. Warehouse club Costco Wholesale Corporation (NASDAQ:COST) is one of Cramer’s favorite stocks. Even though the shares are down by 4% over the past year, the CNBC TV host has remained an ardent believer in the firm. Among the factors that drive his optimism are Costco Wholesale Corporation (NASDAQ:COST)’s ability to keep prices low for c ...