Cramer’s Morning Take: Capital One 1/23/26

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Jim Cramer (1:00)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club Morning Meeting.

Mentioning the oscillator, that's good. Let's talk about Capital One, which was an overbought stock coming into the quarter the day before it had been bid. There are multiple reasons why Capital One is down. One of course is the president just taking credit cards. I mean he's taking on JB. Diamond, could he take on them next? They were very dismissive of the president without using his name. Two, they did not make the numbers. I get that. They weren't really involved with that. And three, I think a lot of people didn't even know what company they bought, this company Brex. Once you get into the conference school, you feel pretty darn confident that this stock could go up dramatically higher in a re-rating.

Jeff Marks (1:42)

Yeah, they're buying Brex, 5.15 billion, half cash, half stock. They offer business credit cards, management software and banking as an integrated platform. They cater a lot to fast-growing tech startups. Yeah, they have Anthropic. A lot of those tech startups are now huge companies. So some clients include Anthropic, Coinbase, TikTok, Robinhood, CrowdStrike, DoorDash. But the big thing here is that this deal is going to make them more competitive in the corporate card space, an area where they haven't had a big presence. And it makes their business model align even more like American Express. Of course, the Discover deal last year, that was the big first step. This is a smaller one, but still. In terms of Discover synergies on track, debit volumes almost fully moved over. They bought back 2.5 billion of stock.

Jim Cramer (2:31)

Committed to buying back stock for certain.

Jeff Marks (2:33)

They said the Brex deal won't impact future buybacks. But I would say 2.5, maybe that's going to be the average amount per quarter.

And yeah, so why is it down? It was an EPS miss, operating expenses a little higher than expected. They are really investing because if you listen to the call, Richard Fairbank just talks about all these growth opportunities that he sees.

Jim Cramer (2:55)

I felt great about it.

Jeff Marks (2:56)

He's going after that.

Jim Cramer (2:57)

I knew that people would sell it because they don't understand Richard's vision. I've been following Richard for many years. When he thinks he has it, when he went upscale, when he thinks he has it, when he's got the really good points program, you get wrong. You don't sell. We're going to hold on to our rest. I think we have a big move coming.

Jeff Marks (3:16)

We trimmed some at 242, downgraded the rating to a hold. It was higher in after hours yesterday, only down maybe, call it 1% to 3%. Said we're going to keep the two here. There might be a little overhang remaining because of the interest credit card cap. Once that smoke clears, maybe we'll look to buy it back.

Jim Cramer (3:37)

That would be great. I totally agree with that. Start your day with my outlook on the daily market every morning at 10, 20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

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