Jim Cramer said he remains optimistic about FedEx Freight even after Amazon announced plans to expand its trucking operations beyond its internal logistics network. Shares of FedEx Freight fell 4.5% following the announcement, though Cramer said the newly independent company held up relatively well.
Speaking during CNBC Investing Club’s "Morning Meeting," Cramer said FedEx Freight is better positioned to grow as a standalone company with dedicated management and investment focused on less-than-truckload shipping operations.
FedEx Freight outlook after spinoff
Cramer said FedEx Freight’s separation from FedEx could help unlock value in its less-than-truckload business, which combines shipments from multiple customers on a single trailer. He said the company previously struggled while operating within the broader FedEx structure.
You have to be dedicated to the LTL in order to do well, and they weren't doing well when they were buried within FedEx.
Jim Cramer
The CNBC Investing Club said it remains positive on the company’s long-term outlook but recently downgraded the stock to a 2 rating after a strong rally following the spinoff. The club said it would consider adding to its position if shares weaken further rather than buying at current levels.
Market volatility and inflation concerns
Stocks traded lower Wednesday as investors evaluated inflation data alongside geopolitical tensions involving Iran. The consumer price index was largely in line with expectations, while rising energy prices remained a key contributor to inflation pressures.
The Investing Club said it has been trimming some positions, including Eaton and Cardinal Health, to increase cash holdings ahead of several anticipated public offerings and artificial intelligence-related deals.
Nvidia declines amid AI-related market activity
Nvidia shares fell another 3% as investors continued raising cash to participate in upcoming IPOs and AI-related offerings. Cramer said the stock’s recent weakness reflected broader market dynamics rather than changes in the company’s underlying business.
If you're a short-term trader, you sell it and buy it back. It's not what I do.
Jim Cramer
Cramer said he continues to view Nvidia as a long-term holding because of demand tied to sovereign AI projects and ongoing investment in AI infrastructure. He also noted Amazon expects to begin generating profits next year from semiconductor investments connected to Nvidia-powered systems.