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What the Investing Club Is Watching Tuesday — Nvidia Loses Deal, GM Gets Downgraded, PayPal Shows Sign of Life

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What the Club is looking at Feb. 8, 2022

  • Nvidia's attempt to buy chip designer Arm from Softbank finally ends due to regulatory challenges … $1.25 billion breakup fee … Nvidia (NVDA) shares are down pre-market … who is selling NVDA on this? I doubt there were any real shareholders who believed this deal would happen … Nvidia just filed it will retain its 20-year Arm license.
  • DuPont (DD) does $1.08 in eps vs. $0.98 expected … The first-quarter 2022 guide looks light as they have to manage through raw material and logistics cost increases … there are moving parts to this story too, with a planned divestiture and upcoming acquisition of Rogers Corp (ROG) … 10% increase in the dividend and a new $1 billion buyback … we took the gain for the Club near $84.
  • Peloton (PTON) cuts full-year outlook … announces CEO John Foley will step down to become executive chair and will be replaced by Barry McCarthy, former CFO of Spotify (SPOT) and Netflix (NFLX) … company plans to cut 2,800 jobs, or 20% of the corporate workforce and reduce manufacturing footprint. 
  • Sign of life: An SEC filing shows PayPal (PYPL) CEO Dan Schulman bought roughly $1 million worth of stock last Thursday (Feb. 3) at $124-$125 per share. 
  • Morgan Stanley analyst Adam Jonas downgrades General Motors (GM) to Equal-Weight, cuts price target to $55 from $75 due to 2022 guidance below his expectations and a change in SOTP (sum of the parts) valuation methodology … says 2022 is a "near peak cycle year"… long-time bear on Ford (F), increases price target by a buck to $13. 
  • Investing Club name NortonLifeLock (NLOK) said Monday night that Germany and the UK okay'd its acquisition of Avast … deal expected to close Feb. 24 ... we talked about NLOK and the importance of this deal last week and on our monthly call ...
  • Pfizer (PFE) beats on earnings, expects a combined $54 billion in COVID-19 vaccine and antiviral sales this year.  

(Jim Cramer's Charitable Trust is long F, NLOK, PYPL and NVDA. 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.

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