Cramer's Morning Take: Eaton 11/4/25

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Jim Cramer (0:10)

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Jim Cramer (0:47)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Jeff Marks (0:55)

Everything we hear about, investment in AI. I mean, just think last week to the hyperscalers. They all raised their capex forecast for the year. They all signaled 26 will be a higher level of investment. Which is, I think it's a good segue into eating today because it's a frustrating reaction. But again, I think the long term trends still strong. It was a slight sales miss. Although revenue up 10%, adjusted EPS beats by a few pennies. They were at the high end of the guide there. But look, accelerating orders, continued backlog growth, Electrical Americas, data center orders were up 70% in the quarter, aerospace very strong. You have orders up 11%, backlog up 15 Where the weakness is, vehicle, e-mobility, those segments, but they're small.

SPEAKER_1 (1:41)

They just did this.

Jim Cramer (1:42)

It's important to point out, you and I went over this and over this and over this. We have made a series of sales and we did not do that for, say, Amazon, for some of the, for LinkedIn. Why do we make sales? Because we know that this company under this CEO is very inconsistent in the way he reports and it makes it difficult. So what happens is, is that we had to sell because we didn't want to get walloped and we feel if there's a second day, I'm telling you, I'm back in here, buying the stock that we sold here. That's portfolio management with a company that doesn't know how to play the game.

Jeff Marks (2:17)

Right. We sold 25 shares October 24th at 378 So we've seen this movie before the last few times.

Jim Cramer (2:23)

They buy that back at 358, you buy it back.

Jeff Marks (2:25)

And they just bought this Boyd Thermal acquisition, which will give them even more exposure inside the data center, liquid cooling, 80 percent of that business supports the data center. And Ian estimates the data center liquid cooling market will grow 35 percent annually through 2028 reaching a total market size of over six billion. So, that's what they really want to get into, a bigger piece of the data center pie, a bigger total addressable market within data centers. Because as we see these new NVIDIA chips from Blackwell, Blackwell Ultra, Rubin, Feynman, we're going to need more cooling technology within them. And that's what they want to serve. So, it's a good deal.

Jim Cramer (3:07)

Remember, this is happened. This is like the third time in a row. This has happened. It does not dissuade us. It just makes us mindful that when the stock gets hit, you want to have room to be able to buy some. And that's exactly what we created, is that room, if it does go downward.

Jeff Marks (3:21)

Yeah, and the call starts at 11, so we'll hear from management later on.

Jim Cramer (3:24)

Remember, he's a new CEO. He's not really wise to the ways of Wall Street yet. But I do point out that today also starts as an ugly day. It's probably not going to be as ugly. But if you don't know any and you sell that acquisition, you might want to buy 100 shares.

Jeff Marks (3:38)

And the complex is down today, right? A lot of these AI infrastructure names are lower. Frustrating move, but taking the long-term view there.

Jim Cramer (3:49)

Join the CNBC Investing Club with Jim Cramer to catch my member-exclusive warning minis every day at 10 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

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