Cramer's Morning Take: Capital One 4/21/25

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Jim Cramer (1:04)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. Now, I do think that we're getting a major opportunity to buy Capital One. We've been waiting for this. What happened is it was up six, and then people used it as a reason to sell to raise money. Now, this is worth, to me, 30 points, okay, 30 points. There's a number of stocks that we have. Disney was upgraded. Again, that stock is down. Texas Roadhouse has been the source of funds the whole time since we bought it. Capital One at least has that catalyst. We want to be catalyst driven. You can't be valuation driven. You must be catalyst driven. We got the catalyst we wanted in Capital One. The stock didn't move. Opportunity.

David Faber (1:47)

Yeah, so Friday, it received regulatory approval by the Fed and the OCC. For the Discover deal, a transaction expected to close May 18th creates the nation's biggest credit card issuer by loan volume. Just some other key advantages of this deal, Capital One, they're going to own the Discover Global Network, which they can then scale up, become a vertically integrated global payments platform. A lot of big synergies from this deal. So when they first announced it by 2027, they were talking about 1.5 billion in expense synergies, another 1.2 billion of network synergies, just moving the Capital One network to the transactions to the Discover network, right, moving away from MasterCard, Visa. It's going to strengthen the balance sheet, which matters even more in this environment. They're going to report Tuesday night after the closing bell. So, maybe we'll get an updated look on synergies and deal accretion and timelines, things like that. But, you know, certainly good news because...

Jim Cramer (2:47)

Yeah, I mean, this was in 169 when I woke up.

David Faber (2:49)

Yeah, it was up 6%, I think, at 1.3 mark.

Jim Cramer (2:52)

I think you buy some, right?

David Faber (2:53)

Yeah.

Jim Cramer (2:53)

We have a lot of cash. You buy some. I also want to point out, I am tempted, but I want to just focus on just catalysts, this one. But Amazon, down 10 from our last buy is interesting to me because I know that they have China exposure, but that China exposure is one time only, and then moving forward, they're going to continue to be the nation's, if not the world's retailer. Yeah. This stock has just been horrendous, but you could have put up the charts of Netflix, I mean, if anything, about Netflix, you put up the charts of NVIDIA. Netflix, in my mind, is just working, damn it. But you put up a chart of NVIDIA, you put up a chart of Apple, you put up a chart.

David Faber (3:30)

Microsoft's holding up.

Jim Cramer (3:32)

And I have to tell you, Microsoft shouldn't be holding up, I just want people to understand that.

David Faber (3:35)

Yeah, I do want to circle back just on the regulatory front with the Capital One deal. If we could pull up Wells Fargo, it's interesting today. So it is a big down day in the market. Wells, relatively holding up, was up for most of the morning. I think the chatter, the read-through people are saying is that now that the Fed is done looking over the Capital One deal, maybe they'll turn their attention onto the asset cap necks. That's another big catalyst.

Jim Cramer (4:01)

I mean, when you talk to Charlie Sharf, I talk to him about a great deal. I mean, they've reformulated the company. So they can't re-re-reformulate it. They've done everything the regulators want. It's very difficult to do everything regulators want and then anticipate something new that the regulators want. They're the cleanest bank there is.