Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. The S & P 500 and Nasdaq were sinking for the third straight session as the rotation out of tech and into the less flashy areas of the market persisted. The S & P 500 's 1% decline on Thursday put the index in the red year to date. The Nasdaq 's 1.4% drop put the index deeper in negative territory in 2026. Very little was working — bitcoi ...

We've seen the market action, but what happens to enterprise software when employees can build some of the leading tools themselves. Dear Drabosa, put that to the test for today's tech check. Dearra, so Kelly, let me first say that I don't know if the software selloff is overdone or it's just getting started, but here's what I do know.AI is now letting me, a person who is not a developer and cannot code a line, actually build and do things that I couldn't have even imagined possible a few weeks ago. So this ...

Core Viewpoint - The market is currently favoring hardware and industrial companies while software companies are facing significant declines, driven by fears of obsolescence due to AI advancements [2][4][19]. Group 1: Market Trends - The Dow dropped 167 points, reflecting a broader market trend where software stocks are being heavily sold off, with the NASDAQ down 1.43% [2]. - High-quality enterprise software stocks like Salesforce, ServiceNow, and Adobe reported strong earnings but still saw their stock prices decline significantly [4]. - The market sentiment indicates a collective belief that software companies are at risk of being replaced or diminished by AI technologies [5][16]. Group 2: Company Performance - Major software companies such as Microsoft, Salesforce, Oracle, and Adobe experienced stock declines ranging from 3% to 11% [10][11]. - Companies that utilize software, like Procter & Gamble and FedEx, are currently performing well despite their own earnings challenges [8]. - Private equity firms with stakes in enterprise software companies are also facing pressure, as the market for new public offerings in this sector appears to be closing [18]. Group 3: Investment Strategies - There is a growing trend of investors using ETFs to short software stocks, indicating a bearish outlook on the sector [9]. - Some analysts suggest that it may be prudent to take advantage of the current low prices of certain tech stocks that are being unfairly dragged down by the broader software sell-off [12]. - The shrinking price-to-earnings multiples for software companies suggest that investors are becoming increasingly cautious about future earnings potential [16][17].

ServiceNow CEO Bill McDermott looks on during an "Invest America" roundtable discussion with US President Donald Trump in the State Dining Room of the White House in Washington, DC on June 9, 2025.ServiceNow topped Wall Street's fourth-quarter estimates after the bell on Wednesday. Shares fell more than 3%.Here's how the company performed versus LSEG estimates:Earnings per share: 92 cents adjusted vs. 88 cents expectedRevenue: $3.57 billion vs. $3.53 billion expected. Revenues grew 20.5% from $2.96 billion ...

分组1: SAP - Analysts are optimistic about SAP stock, with 21 out of 27 rating it a Buy and a target price of $329.08, which is 45% above its current share price [2] - Expected earnings per share for SAP are $7.01 in 2025 and $8.14 in 2026, with current trading multiples at 32.3 and 27.8 times these estimates respectively [2] - The 18% decline in SAP's share price over the past 12 months has improved its valuation from a high of around 42 times earnings [2] 分组2: Texas Instruments - Texas Instruments' free cash flow margin has decreased from 34.3% in 2021 to 12.0% currently, with $2.08 billion in free cash flow on $17.27 billion in revenue [9][10] - Analysts are cautious, with only 13 out of 35 rating TXN a Buy, and a target price of $195.48, which is close to its current trading price [11] - Texas Instruments is expected to report Q4 2025 results soon, and positive news could boost its share price significantly [14] 分组3: Amer Sports - Amer Sports' stock has increased by 179% since its IPO at $13 per share, reflecting strong performance [16] - The company has a significant growth target for its Arc'teryx brand, aiming for $5 billion in sales by 2030 [19] - Amer's shares trade at 31.7 times the 2026 EPS estimate of $1.15, indicating valuation concerns despite positive business outlook [19][20]

Core Insights - Microsoft has experienced significant growth, with its valuation increasing from approximately $1.6 trillion to over $3.4 trillion in the past five years, even surpassing $4 trillion at one point [1] - The company's stability and consistency in business operations make it a strong candidate for long-term investment [2] - Microsoft's dominance in enterprise software provides a safety net, as millions of companies rely on its productivity tools, cloud services, and cybersecurity [3] - High switching costs in the industry discourage customers from moving to competitors, ensuring Microsoft's resilience even amidst fluctuations in the AI market [4] - The company's robust business model positions it well for pursuing growth opportunities in new segments [5] - Despite its strengths, Microsoft was not included in a recent list of the top 10 stocks recommended for investment by The Motley Fool Stock Advisor [6] - Over the past five years, Microsoft's stock price has more than doubled, reflecting its deep integration into the global enterprise landscape [8]

Group 1: Oracle's Financial Performance and Market Reaction - Oracle's shares declined after missing Q2 revenue and earnings projections for fiscal year 2026, raising concerns about an AI bubble [1] - The company raised $18 billion in bond sales to finance its AI ambitions, leading to investor concerns about the increasing debt [2] - If Oracle's stock continues to decline, traders can utilize inverse ETFs like Direxion Daily ORCL Bear 1X ETFs to take bearish positions [3] Group 2: Broader AI Market Dynamics - Despite Oracle's challenges, Broadcom reported a 28% year-over-year revenue increase in Q4 for fiscal year 2025, indicating ongoing strength in the AI sector [4] - Broadcom's AI semiconductor revenue surged by 74% year-over-year, with expectations to double to $8.2 billion in Q1 2026 [5] - Traders can consider bullish positions in Broadcom through Direxion Daily AVGO Bull 2X ETFs, as well as broader tech sector bullishness via Direxion Daily Technology Bull 3X ETF [5]

Core Viewpoint - Vertiv Holdings Co. experienced a nearly 10% stock price drop due to market reactions to external factors, particularly Oracle's earnings report and an analyst downgrade, rather than a decline in its business fundamentals [3][4][8] Group 1: Market Reaction - The decline in Vertiv's stock was linked to Oracle's revenue miss, which raised concerns about the demand for AI infrastructure, leading to sympathy selling in related stocks, including Vertiv [4][6] - The market's reaction was characterized by headline fear regarding the timeline for AI monetization, which may have resulted in an overreaction to Vertiv's stock price drop [5][6] Group 2: Business Fundamentals - Despite the stock price decline, Vertiv's underlying business fundamentals remain strong, with a significant backlog of $9.5 billion and a 60% surge in organic orders [8] - Oracle's increase in capital expenditure guidance for fiscal year 2026 to $50 billion, up $15 billion from prior guidance, signals rising infrastructure demand, which is expected to benefit Vertiv's business in cooling and power distribution [7][8] Group 3: Investment Opportunity - The current sell-off in Vertiv's stock may present an attractive entry point for investors willing to look beyond immediate market noise, as the company's fundamental demand drivers are still robust [5][8]

Core Viewpoint - Oracle Corp's recent financial results have led to a sector-wide correction among major semiconductor companies, despite the potential for upside in ORCL stock due to reflexivity in market perceptions [1][3]. Financial Performance - For the second quarter, Oracle reported adjusted earnings per share of $2.26, surpassing the consensus estimate of $1.64, marking a 54% increase year-over-year [2]. - However, Oracle's revenue of $16.06 billion fell short of analysts' expectations of $16.21 billion, contributing to a decline in stock price [2][3]. Market Dynamics - The decline in ORCL stock by over 15% in recent sessions is attributed to the revenue miss and concerns regarding a potential AI bubble [3]. - The concept of reflexivity suggests that investor perceptions can significantly influence a company's valuation and stock price, creating a feedback loop [5]. Trading Analysis - Analysts suggest viewing ORCL stock through a distributional lens rather than a chronological one to account for rare events that can cause sharp price movements [6][7]. - A distributional analysis indicates that ORCL stock is likely to range between $186 and $212, with a clustering around $200 [11]. Options Strategy - A vertical spread options strategy, specifically a bull call spread, is recommended, targeting a price increase towards $200 while limiting risk beyond that point [12][13]. - The ideal trade involves buying a $190 call and selling a $200 call, with a maximum loss of $450 and a potential profit of $550 if the stock rises above $200 [16][17]. Probability Insights - Probability density significantly decreases above the $200 strike, making it an optimal target for maximizing payout potential while minimizing opportunity cost [18].

Core Viewpoint - The article discusses stocks categorized into "Naughty" and "Nice" lists based on the pricing of their options, highlighting those with inflated premiums to avoid and those with attractive pricing to consider for buying options. Naughty List - Stocks on the Naughty List have options prices that are significantly inflated, making them risky for trading calls or puts due to high premiums [2] - Oracle Corp. (NYSE:ORCL) has seen its implied volatility rise from 24 to 64, indicating overpriced options ahead of earnings [4] - Lululemon athletica Inc. (NASDAQ:LULU) shows options priced above normal, making it difficult to justify long calls or puts [5] - Paychex Inc. (NASDAQ:PAYX) has inflated options that do not align with its consistent performance, stacking odds against buyers [7] - Ciena Corp. (NYSE:CIEN) has overpriced options despite solid stock movement, making it a red flag for potential buyers [8] - FactSet Research Systems Inc. (NYSE:FDS) has options trading at rich premiums, affecting the risk-reward balance for traders [10] Nice List - Stocks on the Nice List have options trading at or near their lowest levels of the year, providing opportunities for buying time premium without overpaying [11] - Uber Technologies Inc. (NYSE:UBER) has seen its implied volatility drop from 80 to 30, making it an attractive option for bullish plays [12] - Rubrik Inc. (NYSE:RBRK) is trading at the bottom of its implied volatility range, presenting a good opportunity for call buying [13] - Tempus AI Inc. (NASDAQ:TEM) is also at low option premium levels, making it a smart choice for potential moves [14] - Ross Stores Inc. (NASDAQ:ROST) has equal high and low volatility levels, indicating a new low in options pricing, which could be favorable for long calls [15] - Ventas Inc. (NYSE:VTR) has dropped premiums near year-lows, making it an attractive option for buyers if a catalyst appears [16]