Shortly after the opening bell, we will be buying 10 shares of Goldman Sachs at roughly $549. Following the trade, Jim Cramer’s Charitable Trust will own 240 shares of GS, increasing its weighting to 3.90% from 375%. Shares of Goldman Sachs are down slightly Wednesday after Oppenheimer downgraded its rating on the investment bank to a hold-equivalent rating from outperform. After high expectations at the start of the year for a significant rebound in mergers-and-acquisitions activity, the market so far has been very disappointed. According to Oppenheimer, M & A is up only 2.4% year to date and concerns over tariffs, trade policy, and the fiscal “detox” that Trump administration officials keep talking about will likely put a pause on dealmaking. As a result, the analysts lowered their 2025 and 2026 earnings estimates for Goldman Sachs to reflect lower levels of investment banking revenues. We want to take the other side of this downgrade and, accordingly, are nibbling on some shares Wednesday morning. The stock is already down about 18% from its February highs, reflecting that disappointment in the M & A market. It’s no secret that the pent up demand in M & A and initial public offerings has failed to materialize like many, including us, expected under the Trump administration. While it may take clarity on President Donald Trump’s trade policy to get deals going again, there are signs that the frozen IPO market is ready to thaw out with Klarna and CoreWeave readying to come public. Meanwhile, trading revenues for the big Wall Street banks appear to have been robust in the first quarter, as we detailed in Tuesday’s Homestretch . And in a potential deregulatory signal, President Donald Trump’s firing of two Democratic commissioners at the Federal Trade commissions could also have a positive impact on deals. (Jim Cramer’s Charitable Trust is long GS. 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.
A view of the New York Stock Exchange building in the Financial District in New York City on Aug. 5, 2024.
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