CNBC Investing Club: Cramer’s Morning Take on Capital One 4/22/26

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Jim Cramer (1:00)

Jim Cramer here to share a short preview of my take on the market from today's members only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 1020 a.m. Visit cnbc.com/morningtake to sign up today. That's one word, morning take.

Jeff Marks (1:21)

Capital One, top and bottom line miss. Not something you want to see. There was a lot of noise though if you back out some one-time items related to the discover deal it actually was pretty okay. But elevated investment spending on their products, that's going to continue under CEO Richard Fairbank. They have to integrate Brex to that deal just closed. Credit mostly fine, consumer solid, a little bit of an allowance build on the auto side just based off growth in that business, a little bit of a higher subprime mix. They bought back two and a half billion of stock. So that was a good sign, still have plenty of capacity to keep that going. Candidly, we would be happier with an EPS beat. We do want to see that happen. We want to see some of the elevated spend, just more rational levels of spending. We want to see the expense synergies from the Discover deal really start to shine. That's going to be a few quarters from now.

But the stock is still very, very cheap on earnings. Analysts were pretty constructive after the quarter here.

Jim Cramer (2:27)

She refuses.

Jeff Marks (2:29)

And that's why you're seeing a stock that's actually up today.

Jim Cramer (2:32)

Well, it was down 8% earlier. We mentioned that. Now, I have to tell you, I'm beginning to think that Richard Fairbank, who's one and only, with Capital One Card, he's done a lot of things different. I don't think he is as attuned to the numbers, to the estimates, as most CEOs, like a Morgan Stanley might be, or a Goldman might be, or a Bank of America might be. They just don't intrigue him. He's not interested in beating them. He's interested in running the bank. And so, therefore, the numbers that are estimates, they're not a focus for him, so he doesn't beat them. And therefore, you end up with a company that has good efficiency.

You have a company that didn't have that bad delinquencies, but you have a company where it's like, wow, he missed on every level. But that's him. He doesn't really care.

Jeff Marks (3:19)

Yeah, I think maybe long-term, these investments will pay off, but they have a lot of work to do, and with building out the payments network, a global payments network would discover, and Brex, they're very excited about, too.

Jim Cramer (3:33)

They'll roll the lounges in the airports.

Jeff Marks (3:35)

But I think on the expense side would discover, at least, they said you'll see a more meaningful impact there as they are near the finish line of that integration. So again, you might be talking early 2027 there, but...

Jim Cramer (3:49)

Maybe the way to look at it is, if this is what it does when it misses every part of what I want, what happens when they start hitting?

SPEAKER_5 (3:58)

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