From CNBC · Zev Fima · · 1m 50s
Adding to FedEx before the holiday rush
Jim Cramer's Charitable Trust buys more FedEx shares ahead of key catalysts, betting on a rotation out of AI stocks.
In brief
Jim Cramer's Charitable Trust buys more FedEx shares ahead of key catalysts, betting on a rotation out of AI stocks. Jim Cramer's Charitable Trust bought twenty shares of FedEx at roughly two hundred eighty-nine dollars each, raising its position to four hundred ten shares as it bets on lower oil prices and the…
Cramer's trust buys FedEx
Jim Cramer's Charitable Trust bought twenty shares of FedEx at roughly two hundred eighty-nine dollars each. The trust now owns four hundred ten shares, raising its weighting to about two point nine eight percent from two point eight four percent.
Rotation out of AI stocks
Most stocks outside the AI buildout have been out of favor for weeks. A Financial Times report said OpenAI's revenue run rate may be closer to fifty billion dollars, about twenty billion dollars less than previously, which could spur buying in non-tech names.
FedEx weakness creates opportunity
FedEx shares have moved lower since the trust last bought at roughly two hundred ninety-seven dollars, bottoming at two hundred eighty dollars on a closing basis. The stock has consolidated around its current level for the past two weeks, driven by inflation and higher oil prices.
Holiday season and oil prices
The trust wants to add to its position ahead of FedEx's all-important holiday shipping season. It believes FedEx will dominate its main rival, UPS, and expects the stock to move up when oil prices fall again.
Waiting for geopolitical catalysts
FedEx can protect profits with fuel surcharges, but higher shipping costs can still impact overall demand. Investors want to own shares before positive updates, most importantly an end to the war in Iran and the reopening of the Strait of Hormuz, are reflected in energy prices.
What it means
Jim Cramer's Charitable Trust bought twenty shares of FedEx at roughly two hundred eighty-nine dollars each, raising its position to four hundred ten shares as it bets on lower oil prices and the holiday shipping season.
