4 takeaways from the Investing Club’s ‘Morning Meeting’ on Wednesday

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Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Monday’s key moments. 1. What Netflix earnings mean for Disney 2. Halliburton has a cheap valuation 3. Bausch + Lomb chairman steps down 4. Quick mentions: AAPL, AMZN 1. What Netflix earnings mean for Disney Netflix (NFLX) shares were up Wednesday after the streaming service reported that it only lost 970,000 subscribers, which was better than the street expectations of 2 million. Not-so-bad news was good news to investors. What does this mean for Investing Club holding and fellow streaming giant, Disney (DIS)? Now that Netflix earnings is out of the way, Disney is in the spotlight. Cramer says we may see a run in Disney if the dividend comes back or the balance sheet gets better. The Investing Club’s take: Disney has many franchises and is entering new markets while Netflix’s growth may be “tapped out,” said Jeff Marks, the Club’s director of portfolio analysis. “Let’s stop conflating Netflix and Disney,” Cramer said in Wednesday’s Investing Club ‘Morning Meeting. Disney can strengthen its streaming by monetizing its famous characters. Netflix doesn’t have this leverage. 2. Halliburton has a cheap valuation Halliburton (HAL) CEO Jeff Miller joined CNBC’s Mad Money on Tuesday and said his company has an edge when it comes to technology and innovation in the oil sector. The interview followed Halliburton reporting better-than-expected earnings results for the second quarter. In its earnings call with investors, management also stressed the current energy market is less prone to the boom and bust cycles of the past and it expects stronger years ahead. We like Halliburton because it’s one of the leaders in its sector and has a cheap valuation. “If you’re looking for something to buy because you think you’re underinvested, and you agree with me that the rally is still on, my choice is Halliburton,” Cramer says. 3. Bausch CEO steps down Bausch + Lomb (BLCO) said Joe Papa has resigned as chairman of the board. He will remain CEO of the company until a successor is found. Bausch Health Companies (BHC) in May spun off eye-care business Bausch + Lomb from the rest of its pharmaceutical brands. Cramer called the timing of the long-awaited breakup a “major gaffe,” as we expected the company would breakup in a way that maximized shareholder value. Unfortunately, that didn’t happen . Billionaire investor Carl Icahn is now on the board of the company, likely to help direct ways to increase shareholder value, and we see this as a positive for the company. Right now, the Club has a 4 rating on Bausch Health — meaning we do not want to buy or sell until we hear more of the activist investor’s plans for the company and learn more of the outcome of the Xifaxan litigation. 4. Quick mentions: AAPL, AMZN Investing Club holding, Amazon (AMZN) had its price target lowered at Jefferies to $150 from $163, but maintained a buy rating. The e-commerce giant sees pressure from inflation and a looming recession, but the analyst suggests the stock has already priced in those headwinds. “I like it because I think retail will bottom,” Cramer said on Amazon. Fellow FAANG stock and Club holding Apple (AAPL) also had price target drop. Morgan Stanley went to $180 from $185. The analyst lowered the price target in anticipation that third-quarter earnings results next week will come in slightly below Street expectations. “If you don’t own Apple yet this close to when it reports, I think you got to wait and see,” Cramer said. But if you already own it, continue to hold and don’t trade it. (Jim Cramer’s Charitable Trust is long DIS, HAL, BHC, AMZN, AAPL. See here for a full list of the stocks.) “As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade” THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.”

Jim Cramer standing in front of the NYSE, June 30, 2022.

Virginia Sherwood | CNBC

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