Cramer's Morning Take: Constellation Brands 2/18/25

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Jim Cramer (1:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. I hated the fact that there was a cabal of shorts working with a few analysts to knock down Palo Alto. It was shameless. It was horrible. The quarter was great. They so confused things. I'm glad Nikesh Arora in the end wins. It's a good stock, and the shorts are going to be on the run. Now, let's just talk about some of the things that you talked about last week. You and I talked about, we were adamant that Constellation Brands had been an underperformer and Bill Newland's not delivering. So we got the chance of our life here.

Jeff Marks (1:41)

Yeah, you got a nice bump this morning after 13F filing revealed that Berkshire had his stake in the company at the end of the fourth quarter. So keep in mind, this was as of December 31st. Don't know what they've done in the last six weeks, especially in the face of that very disappointing last quarter, potential tariffs on goods imported from Mexico. So, you know, it was up 7% pre-market. We looked at that strength as an opportunity to get out.

Jim Cramer (2:07)

Got a chance.

Jeff Marks (2:08)

You still have disappointing beer numbers. The latest Nielsen numbers that came out today, beer, think about how much they screwed up. Shared volumes were down 4.3% year over year. Down 1.4% on a two-week trailing basis.

Jim Cramer (2:18)

They screwed up cannabis. They screwed up beer. They screwed up the brewery in Mexico. They screwed up in not being able to sell their wine spirits division. And it's really one of the... They even had this great opportunity because of the problem with Bud Light. And they just kept screwing it up. They screwed up everything.

It's very disappointing. I hated the fact that we lost a lot of money in this.

Jeff Marks (2:45)

Yeah, very disappointing. But got a lot of cash. Can start putting some things to work in some other areas too.

Jim Cramer (2:51)

Yes, we can.

Jeff Marks (2:52)

As we consolidated some positions as well.

Jim Cramer (2:55)

And we've got a Thursday meeting so we can talk about that. One of the things I'm really excited about was the comeback at GE Healthcare. I had been at times been very discouraged about their Chinese position, but they really delivered and it was a remarkable comeback. Maybe it goes to 100 One of the best performers in healthcare.

Jeff Marks (3:14)

A lot of price targets are around 100 Ours is 100 So certainly good quarter, great order growth. And what I liked too was the conservativeness that they also baked into guidance, whether it's China stimulus and tariffs as well. By the way, seeing a lot of Chinese stocks on the move.

Jim Cramer (3:32)

Right. And by the way, there's an article in several articles I read about how their biotech industry is coming back. And you can't really do a biotech industry without Dan or her, which hopefully will have some positive end without GE Healthcare. Start your day with my out book on the market every morning. Visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_5 (3:59)

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