Core Insights - Saudi Arabia's Public Investment Fund (PIF) has liquidated nearly 12 stocks listed in the U.S. during Q3, including Pinterest and Linde, reducing its U.S. equity holdings to the lowest level in a year [1] - The fund's U.S. stock portfolio value has decreased to $19.4 billion, representing an approximate 18% quarter-over-quarter decline, marking the lowest level since 2025 [1][2] - PIF continues to hold shares in Uber and Electronic Arts but has slightly reduced its stake in Lucid Group [1][3] Exits and Position Changes - Significant exits include: - Cummins: -1,095,578 shares, value change of -$358.80 million, with a price change of +29% [2] - Linde: -436,350 shares, value change of -$204.73 million, with a price change of +1.2% [2] - Air Products: -268,165 shares, value change of -$75.64 million, with a price change of -3.3% [2] - Avery Dennison: -231,662 shares, value change of -$40.65 million, with a price change of -7.6% [2] Top Holdings - PIF's major holdings in the U.S. include: - Uber: 72,840,541 shares valued at $7.14 billion, accounting for 3.5% of the portfolio [3] - Electronic Arts: 24,807,932 shares valued at $5.00 billion, accounting for 9.9% of the portfolio [3] - Lucid Group: 177,088,867 shares valued at $4.21 billion, accounting for 22% of the portfolio [3] - Take-Two Interactive: 11,414,680 shares valued at $2.95 billion, accounting for 6.2% of the portfolio [3] Strategic Focus - The recent divestments align with PIF's strategy to focus on domestic investments to support Saudi Arabia's economic diversification plan [2][4] - PIF aims to invest $70 billion post-2025, primarily within Saudi Arabia, with $57 billion already allocated for 2024 [5] - Further details on PIF's investment strategy for 2026-2030 are expected to be released early next year [5]

Summary of Key Points Core Viewpoint The Public Investment Fund (PIF) has significantly reduced its holdings in US equities, indicating a strategic shift in investment focus. Group 1: PIF Holdings Overview - PIF's US equity holdings decreased to $19.4 billion in Q3 2025 from $23.8 billion in Q2 2025, marking a reduction of $4.4 billion [2] - The fund exited nine companies and all options contracts of 42 companies, while maintaining its investments in six firms [2] Group 2: Specific Company Holdings - Lucid Group's holdings remained at 177.1 million shares, with a value increase from $3.736 billion to $4.213 billion, a change of $476.3 million [4] - Electronic Arts maintained its holdings at 24.8 million shares, with a value increase from $3.962 billion to $5.004 billion, a change of $1.042 billion [4] - Uber's holdings remained at 72.8 million shares, with a value increase from $6.796 billion to $7.136 billion, a change of $340.2 million [4] - Take-Two Interactive's holdings remained at 11.4 million shares, with a value increase from $2.772 billion to $2.949 billion, a change of $177 million [4] - Clarivate's holdings remained at 1.3 million shares, with a value increase from $57.8 million to $68 million, a change of $10.2 million [6] Group 3: Notable Changes in Holdings - PIF exited its positions in several companies, including Air Products & Chemicals, Cummins Inc., Visa Inc., and Walmart, among others, indicating a strategic divestment [4][6] - Lucid Group executed a 1-for-10 reverse stock split in September 2025, reducing its authorized share capital from 15 billion shares to 1.5 billion shares [3][4]

We recently published Jim Cramer Discussed These 25 Stocks In An Important Show About AI Spending. Linde plc (NASDAQ:LIN) is one of the stocks Jim Cramer recently discussed. Linde plc (NASDAQ:LIN) is one of the largest industrial raw materials suppliers in the world. It primarily deals with industrial gases. Cramer previously discussed the stock in January when he pointed out that the firm was part of the ‘real’ economy that was different from the data center economy. In a report earlier this week, UBS up ...

Market Overview - The S&P 500 and Nasdaq experienced declines due to pressure on Big Tech following CoreWeave's disappointing quarterly results, which included a lowered revenue outlook, leading to a 14% drop in CoreWeave's shares [1] - Wall Street is also reacting to soft labor market data, with ADP's payroll tracker indicating an average decline of 11,250 jobs over the four weeks ending October 25 [1] Company-Specific Updates - Linde's shares rose over 1% after UBS upgraded the company from a hold-equivalent rating to a buy, despite a price target reduction from $507 to $500, citing expected earnings-per-share growth in 2026 as a positive catalyst [1] - Nvidia's stock fell approximately 3% after SoftBank announced the sale of its entire stake in the company, which is part of a strategy to fund a $22.5 billion investment in OpenAI; this development does not raise concerns for Nvidia, maintaining the "own, don't trade" thesis [1] Additional Insights - The rapid-fire segment at the end of the video covered stocks including CoreWeave, Paramount Skydance, Amgen, Dutch Bros, and Coterra Energy [1] - Jim Cramer will be signing copies of his new book on market strategies, indicating ongoing engagement with investors [1]

Core Viewpoint - Linde plc has underperformed the broader market despite reporting better-than-expected earnings, leading to a reduction in its full-year earnings guidance, which has negatively impacted investor sentiment [2][4][5]. Company Overview - Linde plc, based in Woking, UK, operates as a specialty chemical company, offering various atmospheric gases and processing oxygen, nitrogen, argon, carbon dioxide, and acetylene, with a market cap of $196.4 billion [1]. Stock Performance - Linde's stock has seen a marginal increase of 44 basis points year-to-date but has declined by 9.7% over the past 52 weeks, contrasting with the S&P 500 Index's gains of 14.4% in 2025 and 12.7% over the past year [2]. - The stock has also underperformed the Materials Select Sector SPDR Fund's (XLB) 2% uptick in 2025, although it marginally outperformed XLB's 10% decline over the past 52 weeks [3]. Q3 Results - Following the release of Q3 results on October 31, Linde's stock dropped by 2.7%. The company's sales in the Americas grew by 6%, while EMEA sales increased by 3%, leading to a 3.1% year-over-year increase in topline revenue to $8.6 billion, surpassing expectations by 17 basis points [4]. - Adjusted EPS rose by 6.9% year-over-year to $4.21, exceeding consensus estimates by 72 basis points [4]. Earnings Guidance - Despite the positive earnings report, Linde reduced the high-end of its full-year earnings guidance, which was not well-received by investors. Analysts expect an adjusted EPS of $16.43 for the full fiscal 2025, reflecting a 5.9% year-over-year increase [5]. Analyst Ratings - Among 27 analysts covering Linde, the consensus rating is a "Strong Buy," consisting of 19 "Strong Buys," two "Moderate Buys," and six "Holds" [6]. - This rating configuration shows a slight improvement from a month ago, when only 18 analysts recommended "Strong Buy" [6]. - RBC Capital analyst Arun Viswanathan reiterated an "Outperform" rating on November 6 but lowered the price target from $576 to $540 [7].

Core Insights - Chevron Corp is a major player in the energy sector, involved in oil and natural gas extraction, refining, and renewable energy initiatives [1] - The article highlights three Dividend Aristocrats, emphasizing their potential for stable income and capital appreciation [4][5] Company Summaries Chevron Corp (CVX) - CVX stock has appreciated nearly 85% over the last five years, indicating strong capital growth alongside increasing dividends [7] - The company offers a forward annual dividend of $6.84, yielding approximately 4.4%, with a 37% increase in dividends over the past five years [8] - Analysts rate CVX as a Moderate Buy with a score of 4.07 out of 5, with a price target of $197 per share, suggesting a ~29% upside potential [9] AbbVie Inc (ABBV) - ABBV stock has risen 119% over the past five years, showcasing significant capital appreciation [11] - The company pays an annual dividend of $6.56, yielding 3%, with a 45% increase in dividends over the last five years and a payout ratio of 68.07% [12] - Analysts also rate ABBV as a Moderate Buy with a score of 4.07 out of 5, with a price target of $284 per share, indicating ~31% upside potential [13] Linde Plc (LIN) - LIN stock has increased by 63% in the last five years, reflecting solid capital growth [15] - The company pays a dividend of $6.00 per share, yielding about 1.5%, with a 59% increase in dividends over the past five years and a low payout ratio of 36% [16] - Analysts rate LIN as a Strong Buy with a score of 4.48 out of 5, with a price target of $576 per share, representing around 38% upside potential [17] Investment Strategy - The three highlighted companies are considered compelling options for investors seeking stable income and potential capital growth, supported by their strong market positions and commitment to shareholder value [18]

Financial Performance - In Q3 2025, Linde's sales reached $8,615 million, a 3% increase from the previous year, driven by a 2% rise in pricing and a 1% contribution from acquisitions [109]. - Reported operating profit for Q3 2025 was $2,367 million, representing a 13% year-over-year increase, with an operating margin of 27.5% [110]. - Adjusted operating profit for Q3 2025 was $2,558 million, up 3% from 2024, with an adjusted operating margin of 29.7% [111]. - Reported net income for Linde plc increased by $379 million, or 24%, in Q3 2025 compared to Q3 2024, and by $528 million, or 11%, for the nine months ended September 30, 2025 [130]. - Adjusted diluted earnings per share (EPS) increased by $0.27, or 7%, for Q3 2025, and by $0.72, or 6%, for the nine months ended September 30, 2025, driven by higher net income and lower diluted shares outstanding [133]. - Reported net income for Q3 2025 was $1,929 million, up from $1,550 million in Q3 2024, reflecting a 24% increase [177]. Tax and Earnings - The effective tax rate decreased to 18.0% in Q3 2025 from 24.1% in Q3 2024, contributing to a diluted EPS of $4.09, a 27% increase year-over-year [110]. - The effective tax rate (ETR) for Q3 2025 was 18.0%, down from 24.1% in Q3 2024, primarily due to a tax rate decrease in EMEA, resulting in a benefit of $156 million [125]. Sales and Segments - Total sales for the company increased by 3% to $8,615 million in Q3 2025, and by 2% to $25,222 million for the nine months ended September 30, 2025, compared to the respective 2024 periods [140]. - The Americas segment reported a sales increase of $228 million, or 6%, in Q3 2025, with higher pricing contributing 3% to sales [142]. - EMEA segment sales increased by $67 million, or 3%, in Q3 2025, with currency translation contributing a 5% increase due to the strengthening of the Euro and British pound [147]. - APAC segment sales increased by $25 million, or 1%, in Q3 2025, but decreased by $29 million, or 1%, for the nine months ended September 30, 2025, compared to 2024 [150]. - Engineering segment sales decreased by $92 million, or 15%, in Q3 2025, and by $59 million, or 3%, for the nine months ended September 30, 2025, driven by project timing [153]. - Other segment sales increased by $31 million, or 10%, in Q3 2025, and by $18 million, or 2%, for the nine months ended September 30, 2025, primarily due to higher volumes in Linde Advanced Material Technologies [158]. Expenses and Costs - Cost of sales, excluding depreciation and amortization, was 50.8% of sales in Q3 2025, down from 52.1% in Q3 2024, reflecting higher pricing and productivity gains [115]. - Selling, general and administrative expenses rose by 9% in Q3 2025, accounting for 10.4% of sales, compared to 9.8% in the same quarter of 2024 [116]. - Net pension and OPEB cost benefit was $57 million for Q3 2025, up from $45 million in Q3 2024, primarily due to lower interest costs [124]. Cash Flow and Investments - Cash provided by operations was $7,320 million for the nine months ended September 30, 2025, an increase of $706 million, or 11%, compared to 2024 [163]. - Net cash used for investing activities was $4,260 million for the nine months ended September 30, 2025, an increase of $992 million, or 30%, versus 2024, due to higher capital expenditures and acquisition spend [164]. - Capital expenditures for the nine months ended September 30, 2025, were $3,803 million, $556 million higher than the prior year, primarily for new plant and production equipment [164]. - Cash used for financing activities was $3,536 million for the nine months ended September 30, 2025, compared to $2,749 million for the same period in 2024 [169]. - Cash dividends increased by $117 million to $2,113 million, driven by an 8% increase in quarterly dividends per share from $1.39 to $1.50 [171]. Employee and Operational Metrics - The number of employees decreased by 107 to 65,489 as of September 30, 2025, primarily due to ongoing cost reduction programs [134]. - Other comprehensive loss for Q3 2025 was $165 million, primarily due to currency translation adjustments of $167 million [138]. - Noncontrolling interests income was reported at $43 million for Q3 2025, down from $53 million in Q3 2024, reflecting the impact of a divestiture in the APAC segment [129]. Balance Sheet and Assets - Current assets as of September 30, 2025, were $5,442 million, a decrease from $7,827 million at the end of December 31, 2024 [193]. - Long-term assets increased to $16,355 million as of September 30, 2025, compared to $14,481 million at the end of December 31, 2024 [193]. - Current liabilities rose to $12,190 million as of September 30, 2025, compared to $10,309 million at the end of December 31, 2024 [193]. - Long-term liabilities increased to $70,688 million as of September 30, 2025, from $64,848 million at the end of December 31, 2024 [193].

Financial Data and Key Metrics Changes - EPS for the third quarter was $4.21, representing a 7% increase year-over-year [4] - Operating cash flow grew by 8% to $2.9 billion, with free cash flow generation of $1.7 billion [4][14] - Sales reached $8.6 billion, up 3% from the previous year and 1% sequentially, with underlying sales increasing by 2% year-over-year [12][14] - The backlog remains strong at $10 billion, securing long-term EPS growth [4] Business Line Data and Key Metrics Changes - Consumer-related end markets, accounting for about one-third of global sales, showed stable growth, particularly in healthcare and food and beverage [5] - Electronics, representing 9% of sales, was the fastest-growing end market with 6% growth driven by high-end chip production [6] - Industrial end markets, which make up about two-thirds of sales, faced challenges, with chemicals and energy up 1% due to inflationary price increases, but base volumes were down [8][9] Market Data and Key Metrics Changes - The U.S. market showed resilience, particularly in metals and manufacturing, while Europe continued to face demand challenges [7][9] - In APAC, manufacturing volumes remained steady, with China leveling off and India showing strong growth [9] - The overall industrial activity in Europe remains soft, with no immediate catalysts for improvement [50] Company Strategy and Development Direction - The company is focused on maintaining a recession-resistant model, emphasizing productivity and efficiency while targeting high-quality growth [10] - There is a strong emphasis on capital management, with $4.2 billion invested in the business and $5.3 billion returned to shareholders [14] - The company anticipates continued growth in electronics and is exploring opportunities in steel and metals due to recent tariffs [23][44] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the outlook, noting the difficulty in identifying near-term catalysts for industrial activity improvement [15] - The company has navigated an industrial recession for over two years and is prepared to take mitigating actions if conditions worsen [16] - There is confidence in the competitiveness of customers and the potential for a rebound in the chemical sector over time [72] Other Important Information - The company expects fourth-quarter EPS guidance to be between $4.10 and $4.20, reflecting a 3% to 6% growth [15] - The tax rate for the fourth quarter is anticipated to be higher than the current run rate due to timing effects [15] Q&A Session Summary Question: Regarding the backlog and new projects - The backlog is at a record level of $7 billion, and the company is on track to maintain this by year-end despite project startups [19] Question: Opportunities in the U.S. steel market - The company is seeing potential expansion opportunities in the U.S. steel and metals sector due to tariffs [23] Question: Outlook for 2026 - The company will provide guidance for next year in February, but the backlog is expected to support continued EPS growth [28] Question: Pricing trends and macroeconomic conditions - Pricing has remained stable year-over-year, with helium and rare gases being a drag on overall pricing [33][34] Question: Impact of European capacity closures - The company does not expect significant impacts from European capacity rationalization due to strong contractual protections [78] Question: Growth in the electronics sector - The semiconductor industry is expected to grow at a rate of 9% to 11% over the next five years, with increased gas intensity in advanced nodes [93][95]

Financial Data and Key Metrics Changes - EPS for the third quarter was $4.21, representing a 7% increase year-over-year [4] - Operating cash flow grew by 8% to $2.9 billion, with free cash flow generation of $1.7 billion [4][14] - Sales reached $8.6 billion, up 3% year-over-year and 1% sequentially, with underlying sales increasing by 2% [12][14] - The backlog remains strong at $10 billion, securing long-term EPS growth [4] Business Line Data and Key Metrics Changes - Consumer-related end markets, accounting for about one-third of global sales, showed stable growth, particularly in healthcare and food and beverage [5] - Electronics, representing 9% of sales, was the fastest-growing segment with 6% growth driven by high-end chip production [6] - Industrial end markets, which make up about two-thirds of sales, faced challenges, with metals and mining slightly up due to inflation but overall base volumes down [7][8] - Manufacturing grew by 3% year-on-year, particularly in the U.S., while Europe continued to face softness [9] Market Data and Key Metrics Changes - The U.S. market showed resilience with mid-single-digit growth in the packaged gas business, while Europe remained weak with declining volumes [10][56] - In APAC, pricing was positive excluding helium and rare gases, but overall demand faced challenges due to deflation in China [66] - The chemical sector is currently under pressure, particularly in Europe, but there are expectations for a rebound as capacity rationalization occurs [72] Company Strategy and Development Direction - The company is focused on maintaining a recession-resistant model, emphasizing productivity and efficiency while targeting high-quality growth [10] - There is a strong emphasis on capital management, with $4.2 billion invested in the business and $5.3 billion returned to shareholders [14] - The company anticipates continued growth in electronics and is exploring opportunities in steel and metals due to recent tariffs [23][44] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment, noting that identifying near-term catalysts for improvement in industrial activity is challenging [15] - The company has been navigating an industrial recession for over two years and is prepared to take mitigating actions if conditions worsen [16] - There is optimism about the potential for recovery in the chemical sector, driven by rationalization actions in Europe [72] Other Important Information - The company expects fourth-quarter EPS guidance to be between $4.10 and $4.20, reflecting a cautious outlook [15] - The tax rate for the fourth quarter is anticipated to be higher than the current run rate due to timing effects [15] Q&A Session Summary Question: Backlog expectations for Q4 - Management confirmed that the backlog is expected to remain at a record level of $7 billion by year-end despite project startups [19] Question: Opportunities in U.S. steel projects - Management indicated that there are potential expansion opportunities in the U.S. steel sector due to tariffs, positioning the company favorably [23] Question: Outlook for 2026 - Management stated that a rigorous planning process will provide visibility for next year, with expectations for continued EPS growth driven by the project backlog [28] Question: Pricing trends and macroeconomic impact - Management noted that pricing is aligned with global inflation, and while helium pricing is a drag, overall pricing remains stable [33][34] Question: Chemical industry recovery - Management acknowledged structural challenges in the chemical sector but expressed confidence in a future rebound due to capacity rationalization [72] Question: European market conditions - Management indicated that the European market remains soft, with no immediate catalysts for change, but there is hope for future infrastructure spending to spur activity [50][51] Question: Manufacturing growth in the U.S. vs. Europe - Management highlighted that U.S. manufacturing is rebounding while Europe continues to struggle, with expectations for future growth tied to infrastructure investments [86][88]

Financial Data and Key Metrics Changes - EPS for the third quarter was $4.21, representing a 7% increase year-over-year [3] - Operating cash flow grew by 8% to $2.9 billion, with free cash flow generation of $1.7 billion [3][13] - Sales reached $8.6 billion, up 3% from the previous year, with a 1% sequential increase [11] - Underlying sales increased by 2% year-over-year, with price increases of 2% aligned with global inflation [11][12] Business Line Data and Key Metrics Changes - Consumer-related end markets, including healthcare and food & beverage, showed stable growth, with healthcare expected to remain steady [4] - Electronics was the fastest-growing end market, achieving 6% growth driven by high-end chip production [5] - Industrial end markets, which account for about two-thirds of sales, faced challenges, with metals and mining slightly up due to inflation but overall base volumes down [6][7] - Manufacturing grew by 3% year-on-year, particularly in the U.S., with strong volume growth noted [8] Market Data and Key Metrics Changes - The U.S. market showed resilience with mid-single-digit growth in the packaged gas business, while Europe continued to face negative volume trends [48][49] - China experienced a leveling off in manufacturing, while India remained on a strong growth trajectory [8] - The European market remains soft, with no immediate catalysts for improvement expected [42][44] Company Strategy and Development Direction - The company is focused on maintaining a recession-resistant model, emphasizing productivity and efficiency while targeting high-quality growth [9][16] - There is a strong emphasis on capital management, with $4.2 billion invested year-to-date and $5.3 billion returned to shareholders [13] - The company anticipates continued growth in the electronics sector, with a robust pipeline of projects expected to drive future EPS growth [36][84] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook, particularly in industrial activity, while remaining confident in the company's ability to generate shareholder value [15][16] - The company has been navigating an industrial recession for over two years and is prepared to take mitigating actions if conditions worsen [16] - There is optimism about the potential for recovery in the chemical industry, although it may take time [65] Other Important Information - The company expects fourth-quarter EPS guidance to be between $4.10 and $4.20, reflecting a cautious outlook [14] - The backlog remains strong at $10 billion, securing long-term EPS growth [3] Q&A Session Summary Question: Backlog expectations for new projects - Management confirmed that the backlog is at a record level of $7 billion and is on track to maintain this by year-end despite project startups [18] Question: Opportunities in the U.S. steel market - Management indicated that there are ongoing opportunities for expansion in the U.S. steel and metals sector due to tariffs and market positioning [20] Question: Pricing trends and macroeconomic conditions - Management noted that pricing has remained stable year-over-year, with helium and rare gases being a drag on overall pricing [28][29] Question: EPS growth algorithm and macroeconomic factors - Management explained that their EPS growth algorithm does not rely solely on macroeconomic conditions, with capital allocation and management actions being key drivers [32] Question: Future growth in electronics and industrial gas demand - Management expects robust growth in the electronics sector, driven by advancements in semiconductor technology and increased gas intensity [84] Question: Margins in EMEA and future outlook - Management indicated that margins are strong but may not expand further without volume recovery, with a focus on maintaining pricing aligned with inflation [88] Question: Demand trends in packaged gases - Management highlighted stable demand trends in the packaged gas sector, particularly in welding applications, while discussing regional consolidation opportunities [89]