Walmart stock split, Jim Cramer chipmaker next
Jim Cramer discusses Walmart's stock split, Berkshire Hathaway's underperformance, Domino's strong results, and Zealand Pharma's promising drug trial.
Jim Cramer's daily rapid fire takes on stocks in the news outside the CNBC Investing Club portfolio. Let's start with Walmart. The Arkansas-based retail giant's 3-for-1 stock split went into effect Monday. Cramer thinks other companies should consider similar moves. While splits don't change a company's fundamentals, Cramer believes they make certain equities more attractive to retail investors who may be put off by high stock prices. CEO Doug McMillon said that founder Sam Walton liked splits because people don't like partial stock. Cramer thinks companies like Broadcom should take note. Cramer's Charitable Trust, the portfolio used by the CNBC Investing Club, owns Broadcom. Moving on to Berkshire Hathaway. Shares were lower Monday after Warren Buffett's conglomerate reported fourth-quarter and full-year results. Buffett expressed humility but also mentioned that BNSF railroad has underperformed. Now, onto Domino's Pizza. Shares jumped 7% after the Michigan-based pizza chain reported strong fourth-quarter results and boosted its capital return program. Cramer sees this as a win, with a long-term positive view, a buyback, and a big dividend increase. Finally, Zealand Pharma. The Danish biotech and its German partner, Boehringer Ingelheim, posted positive mid-stage trial results for an experimental GLP-1 drug to treat fatty liver disease, now known as metabolic dysfunction-associated steatohepatitis, or MASH. Cramer is glad to see the removal of the term non-alcohol related steatohepatitis. He also notes that CNBC Investing Club holding Eli Lilly's GLP-1 tirzepatide has demonstrated efficacy against the liver condition.
Comments on Walmart stock split, Jim Cramer chipmaker next