Investing Club: What Cramer is watching Thursday — the market's quiet winners, Facebook stumbles, Qualcomm rises

Published Thu, Feb 3 20229:21 AM ESTUpdated Mon, Feb 7 20224:09 PM EST

What I am looking at Feb. 3, 2022 Meta (FB), formerly Facebook, posted disappointing earnings after the bell Wednesday ... aggressive investments in the Metaverse and Apple privacy changes were major drags ... Facebook's "reset" and the growing popularity of TikTok—lots of transitions happening that can be explained by saying that Mark Zuckerberg is not going to let long-term loss happen here. Show me—is this like 2018 (when Facebook had a rough go of it)? So much cash and so cheap so fast after yesterday's plunge; will impact growth rate for full year.. took a while for this ... Join us for our Morning Meeting today at 10:20 a.m. EST, where we'll dig more into Meta's results. Meta culprits—iOS measurement changes enacted in spring 2021, format transition to Reels, TikTok, ad slowdown v. Google ... all will impact growth for the full year ... More upbeat news: the big winners in this market are quietly the health insurers. Centene (CNC) looks good ... UnitedHealth (UNH) is a strong buy ... Humana (HUM) not bad ... More good health care: AbbVie (ABBV) price target raised to $150 from $133 by Barclays ... DexCom (DXCM) upgraded to buy from neutral by BTIG ... Mckesson (MCK) AND Cardinal Health (CAH) are both great too. Drug maker Eli Lilly (LLY) big beat, reported fourth-quarter EPS of $2.49 vs. consensus of $2.18—full-year guidance had already been given in December ... net sales organic growth was 11%—amazing ... huge upside for diabetes drug Trulicity ... BUT the pandemic=no new news on Alzheimer drug ... will learn more on earnings call ... Reminder for paid members of the Investing Club: Our next live Investing Club monthly call is this Friday at 12:30 p.m. EST. Our special guest is Lisa Su, CEO of Advanced Micro Devices (AMD). We'll also provide updates on the portfolio and answer some great Club member questions. Penn National (PENN) looks bad ... Street looking for EPS of 53c, it gave 26c ... Dave Portnoy (CEO of Penn partner Barstool) factor not helping yet … Bet on DraftKings (DKNG) ... Honeywell (HON)—need aerospace recovery ... period ... end of story. Market no longer content with "opportunity"—show me earnings and users and MONEY. Organic growth down 2% ... how much of that is the pandemic, we need to know ... waiting for Boeing (BA), transportation opening ... accelerating organic growth though, company sees sales on-year growth of 4% to 7% in 2022. Spotify (SPOT)—historic weakness first quarter ... Joe Rogan not a factor? January not important. Price target dropped to $238 from $270. Housing—even though numbers are great, Citi is lowering targets ... PulteGroup (PHM) upgraded by UBS ... housing companies are still getting giant margin bump ... which is highly unusual. Credit Suisse likes Unilever (UL, upgrades to buy from hold. Qualcomm (QCOM): best-ever 5G and big customer in automaker General Motors (GM) ... this might be the next one to own. Lots to like here, wish we had bought it ... can still in a downturn. You want an inflation winner? Try Old Dominion (ODFL) ... raised dividend 50%. People buying gold stocks ... I worry about costs and gold stocks. Align (ALGN)—good quarter ... price target lowered to $722 from $782 by Credit Suisse ... on Mad Money tonight. Barclays downgrades Edwards Lifesciences (EW) as Old Navy and Gap (GPS) inflect negative Wells Fargo (WFC) price target raised by JPMorgan to $58.50 from $57; PNC Financial (PNC) raised to $232 from $229. Ignore negativity on industrials as they make things and do stuff ... Starbucks (SBUX) price target lowered Deutsche Bank to $116 from $122 ... show me ... Thermo Fisher Scientific (TMO)—Wells Fargo thinks post-pandemic numbers too high ... Estee Lauder posted big beat, but as usual gave weak guidance ... love this name but sold much higher ... General Motors (GM)—focus on autonomous and on electric vehicles ... T-Mobile (TMUS)—unstoppable—I say it is because of Apple, added 315K postpaid net accounts in fourth quarter. (Jim Cramer's Charitable Trust is long ABBV, AMD, GOOGL, LLY, WFC . 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.

Facebook Chairman and CEO Mark Zuckerberg testifies at a House Financial Services Committee hearing in Washington, October 23, 2019.

Erin Scott | Reuters