Insights from Dick's Sporting Goods' Earnings Report on Nike's Recovery
Market Overview: On Tuesday, the S&P 500 and Dow Jones saw gains while the Nasdaq Composite declined, with Nvidia shares dropping over 6% due to Meta's potential use of Google's TPUs. Jim Cramer views this as a buying opportunity for Nvidia and Meta.
Investment Strategy: Cramer emphasized the importance of a diversified portfolio, favoring defensive stocks like Procter & Gamble, especially with a new CEO expected to implement changes. The Club also increased its position in Home Depot, anticipating a rise when interest rates fall.
Nike's Performance: Nike's shares rose 3% following Dick's Sporting Goods' announcement of closing Foot Locker locations. Cramer noted that Nike's relationship with Dick's is improving, particularly in their running product line.
Trade Alerts: Subscribers to the CNBC Investing Club receive trade alerts before Cramer executes trades in his charitable trust's portfolio, with specific waiting periods based on prior discussions on CNBC TV.
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Analyst Views on META
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Meta's Earnings Beat Expectations, Analysts Raise Price Targets
- Strong Earnings: Meta reported fourth-quarter earnings of $8.88 per share and revenue of $59.89 billion, both exceeding market expectations, indicating that AI-driven advertising monetization is alleviating concerns over rising operating and capital expenditures.
- Robust Guidance: The company expects first-quarter sales to range between $53.5 billion and $56.5 billion, significantly above the consensus estimate of $51.41 billion, suggesting strong growth momentum in its advertising business that reinforces its market position.
- AI Investment Returns: Despite a $6.02 billion operating loss from Reality Labs, analysts remain optimistic about Meta's AI investments, believing that the growth in its advertising business will offset these losses, with benefits from AI expected to materialize by 2026.
- Analyst Optimism: Several Wall Street analysts raised their price targets for Meta, with Barclays increasing its target to $800, implying a 20% upside, reflecting confidence in Meta's long-term growth potential.

TSMC Reports Stellar Q4 Results and Capital Spending Plans
- Significant Revenue Growth: TSMC's Q4 revenue surged 25.5% year-over-year to $33.73 billion, with a gross margin of 62.3%, reflecting strong market demand and profitability, thereby reinforcing its leadership position in the semiconductor industry.
- Capital Expenditure Plans: Management anticipates capital spending between $52 billion and $56 billion in 2026, with approximately 40% of revenue allocated to capital expenditures, indicating strong confidence in future growth and ongoing investment in the AI market.
- Increase in Advanced Process Share: Three-nanometer chips accounted for 28% of total wafer revenue, five-nanometer for 35%, and seven-nanometer for 14%, totaling 77% of revenue from the most advanced processes, highlighting the robust demand driven by AI applications and TSMC's technological edge.
- Geopolitical Risk Management: TSMC is actively expanding into the U.S. and Japan to reduce reliance on Taiwan, enhancing the stability and resilience of its global supply chain, ensuring competitiveness in a rapidly changing market environment.









