Cramer explains why this time, Fed rate cuts should take a different approach.
Market Overview: Wall Street started the week positively, with the tech-led Nasdaq reaching an all-time high. Investors are anticipating key inflation reports, while weak jobs data has increased expectations for potential Fed rate cuts by year-end.
Home Depot's Potential: Jim Cramer believes Home Depot is poised for a positive market reaction as mortgage rates drop below 6.5%, contrasting with last year's performance when rate cuts did not lead to sustained bond yield declines.
Broadcom's Performance: Broadcom shares surged following strong earnings and the announcement of a new major customer, marking a five-session winning streak and solidifying its position as the largest holding in Jim Cramer's portfolio.
Stock Highlights: In a rapid-fire segment, stocks such as Chewy, Kenvue, and Robinhood Markets were discussed, with Jim Cramer emphasizing the importance of trade alerts for subscribers of the CNBC Investing Club.
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Analyst Views on VZ
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Verizon Shares Rise for Seventh Consecutive Day Amid Strong Earnings
- Stock Price Surge: Verizon shares rose 0.33% to $47.017 on Thursday afternoon, marking the seventh consecutive day of gains, reflecting positive market sentiment towards its financial performance.
- Earnings Beat Expectations: The company reported quarterly results on January 30 that exceeded analyst expectations, with strong subscriber additions in Q4, leading to a short-term stock price increase of approximately 12%.
- Capital Return Strategy: Verizon announced a dividend increase and authorized up to $25 billion in share buybacks, while also projecting $5 billion in operating expense savings to support its 2026 outlook, although analysts express caution regarding its growth prospects.
- Divergent Analyst Ratings: According to Seeking Alpha's rating system, Verizon holds a 'Hold' rating with an A+ in profitability but a D- in growth, indicating analysts' concerns about future growth, particularly with flat wireless service revenue expectations.
Tech Sector Rebound Fails to Offset Weekly Losses
- Nasdaq Rebound: The Nasdaq gained over 2% on Friday, yet still posted a 1.8% decline for the week, indicating ongoing investor concerns about tech stocks and the need to monitor future market trends.
- Dow Hits All-Time High: The Dow surged more than 1,200 points on Friday, closing at 50,115 with a weekly gain of 2.5%, reflecting a shift of funds from growth to value stocks, which may influence future investment strategies.
- Surge in Capital Expenditures: Alphabet announced that its capital expenditures for 2026 could exceed double the previous year, and despite a 0.5% drop in shares on Thursday, market confidence in its AI investments remains strong, signaling expectations for future growth.
- Software Stocks Crushed: Software stocks faced significant declines due to fears of AI encroaching on traditional SaaS companies, leading to pressure on the entire tech sector, prompting investors to remain vigilant about potential risks and opportunities within the industry.
Verizon Executives Typically Hold Company Stock, But One Insider Just Sold Some.
Verizon Executive Stock Sale: A top executive at Verizon sold thousands of shares of company stock following the release of strong fourth-quarter earnings.
Uncommon Stock Sales: It is rare for Verizon executives to sell company stock, highlighting the significance of this transaction.
Will SpaceX Compete with AST SpaceMobile to Achieve Its 2026 Launch Goals?
Company Performance: AST Space Mobile has seen a significant increase in its stock, climbing over 240% since 2025, with shares up 24% year-to-date despite some volatility and setbacks in its launch schedule.
Government Contracts: The company was awarded a government contract for its scalable homeland defense services, which is expected to bolster its operations and credibility in the space communications sector.
Upcoming Launches: AST Space Mobile is preparing for the launch of its Bluebird 7 satellite, which is set to transport its next-generation technology into low Earth orbit, aiming to meet ambitious launch targets by the end of 2026.
Market Position and Challenges: Despite its growth, analysts express skepticism about AST's ability to meet its launch goals, with concerns about its current pace and the potential for missing targets, which could impact its long-term market position against competitors like SpaceX.
Verizon's Strong Year-End Results Secure Dividend Confidence
- Dividend Yield Advantage: Verizon boasts a dividend yield of 6.2%, significantly higher than the S&P 500's 1.1%, making it particularly attractive to investors seeking stable cash flow amid market volatility.
- Performance Exceeds Expectations: In its year-end results for 2025, Verizon not only met its full-year guidance but also achieved its highest net additions since 2019, demonstrating strong customer growth and boosting investor confidence.
- Robust Free Cash Flow: Verizon reported free cash flow of $20.1 billion, an increase from the previous year, comfortably covering its $11.6 billion annual dividend payout, ensuring a healthy balance between ongoing investments and shareholder returns.
- Acquisition Brings New Opportunities: The completion of the Frontier Communications acquisition further strengthens Verizon's fiber network, expected to provide additional growth opportunities in the future and solidify its competitive position in the telecommunications industry.
Verizon's Sampath Departs Amid Ongoing Leadership Changes
- Leadership Change: Sowmyanarayan Sampath, CEO of Verizon's consumer division, is stepping down.
- Impact on Verizon: This resignation signifies another significant leadership shift within the large U.S. telecom company.
Verizon Shares Rise for Seventh Consecutive Day Amid Strong Earnings
- Stock Price Surge: Verizon shares rose 0.33% to $47.017 on Thursday afternoon, marking the seventh consecutive day of gains, reflecting positive market sentiment towards its financial performance.
- Earnings Beat Expectations: The company reported quarterly results on January 30 that exceeded analyst expectations, with strong subscriber additions in Q4, leading to a short-term stock price increase of approximately 12%.
- Capital Return Strategy: Verizon announced a dividend increase and authorized up to $25 billion in share buybacks, while also projecting $5 billion in operating expense savings to support its 2026 outlook, although analysts express caution regarding its growth prospects.
- Divergent Analyst Ratings: According to Seeking Alpha's rating system, Verizon holds a 'Hold' rating with an A+ in profitability but a D- in growth, indicating analysts' concerns about future growth, particularly with flat wireless service revenue expectations.
Tech Sector Rebound Fails to Offset Weekly Losses
- Nasdaq Rebound: The Nasdaq gained over 2% on Friday, yet still posted a 1.8% decline for the week, indicating ongoing investor concerns about tech stocks and the need to monitor future market trends.
- Dow Hits All-Time High: The Dow surged more than 1,200 points on Friday, closing at 50,115 with a weekly gain of 2.5%, reflecting a shift of funds from growth to value stocks, which may influence future investment strategies.
- Surge in Capital Expenditures: Alphabet announced that its capital expenditures for 2026 could exceed double the previous year, and despite a 0.5% drop in shares on Thursday, market confidence in its AI investments remains strong, signaling expectations for future growth.
- Software Stocks Crushed: Software stocks faced significant declines due to fears of AI encroaching on traditional SaaS companies, leading to pressure on the entire tech sector, prompting investors to remain vigilant about potential risks and opportunities within the industry.
Verizon Executives Typically Hold Company Stock, But One Insider Just Sold Some.
Verizon Executive Stock Sale: A top executive at Verizon sold thousands of shares of company stock following the release of strong fourth-quarter earnings.
Uncommon Stock Sales: It is rare for Verizon executives to sell company stock, highlighting the significance of this transaction.
Will SpaceX Compete with AST SpaceMobile to Achieve Its 2026 Launch Goals?
Company Performance: AST Space Mobile has seen a significant increase in its stock, climbing over 240% since 2025, with shares up 24% year-to-date despite some volatility and setbacks in its launch schedule.
Government Contracts: The company was awarded a government contract for its scalable homeland defense services, which is expected to bolster its operations and credibility in the space communications sector.
Upcoming Launches: AST Space Mobile is preparing for the launch of its Bluebird 7 satellite, which is set to transport its next-generation technology into low Earth orbit, aiming to meet ambitious launch targets by the end of 2026.
Market Position and Challenges: Despite its growth, analysts express skepticism about AST's ability to meet its launch goals, with concerns about its current pace and the potential for missing targets, which could impact its long-term market position against competitors like SpaceX.
Verizon's Strong Year-End Results Secure Dividend Confidence
- Dividend Yield Advantage: Verizon boasts a dividend yield of 6.2%, significantly higher than the S&P 500's 1.1%, making it particularly attractive to investors seeking stable cash flow amid market volatility.
- Performance Exceeds Expectations: In its year-end results for 2025, Verizon not only met its full-year guidance but also achieved its highest net additions since 2019, demonstrating strong customer growth and boosting investor confidence.
- Robust Free Cash Flow: Verizon reported free cash flow of $20.1 billion, an increase from the previous year, comfortably covering its $11.6 billion annual dividend payout, ensuring a healthy balance between ongoing investments and shareholder returns.
- Acquisition Brings New Opportunities: The completion of the Frontier Communications acquisition further strengthens Verizon's fiber network, expected to provide additional growth opportunities in the future and solidify its competitive position in the telecommunications industry.
Verizon's Sampath Departs Amid Ongoing Leadership Changes
- Leadership Change: Sowmyanarayan Sampath, CEO of Verizon's consumer division, is stepping down.
- Impact on Verizon: This resignation signifies another significant leadership shift within the large U.S. telecom company.
