Jim Cramer Evaluates Costco Amid Market Shifts

On December 9, 2025, the CNBC Investing Club with Jim Cramer reported a positive market outlook ahead of the Federal Reserve's anticipated interest rate decision. The U.S. central bank is expected to implement a 25 basis point cut, marking the third reduction of the year. Cramer highlighted that such a move could significantly benefit rate-sensitive stocks, particularly Home Depot and various technology companies.

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Cramer also discussed Nvidia, noting that President Donald Trump has approved the sale of the company's advanced H200 chips to selected customers in China, contingent upon a 25% revenue cut to the U.S. This development could potentially add between $25 billion and $30 billion to Nvidia's annual revenue, translating to an increase of $0.60 to $0.70 in earnings per share. While Cramer emphasized that the club is not relying on these sales, he acknowledged them as a beneficial bonus.

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In the chemical sector, shares of Linde rose by 1% following CEO Sanjiv Lamba's purchase of 2,520 shares at approximately $396 each, totaling around $1 million. This insider buying comes after Linde's stock hit a 52-week low of $387.78, reflecting an 18% decline since October. Portfolio director Jeff Marks suggested that Lamba's investment might indicate that the market's perception of Linde's performance could be overly pessimistic.

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Cramer expressed growing concerns regarding Costco's stock performance, which has declined over 30% year-to-date, contrasting sharply with Walmart's 26% increase in the same period. Despite considering Costco one of the best-performing stocks historically, Cramer indicated that he may need to reevaluate his position if the downward trend continues. He is awaiting signals from Costco's management to confirm that this decline is not indicative of a new normal, particularly as the company prepares to report its first quarter of fiscal 2026 on Thursday.

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Cramer stated, "If the Fed cuts, that's just gigantic for some of our stocks," emphasizing the potential positive impact of the Federal Reserve's actions on the market. Regarding Costco, he noted, "I don't want to sell it," but acknowledged the necessity of reassessing his stance if the stock continues to falter.

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As Costco approaches its earnings report, investors and analysts will be closely monitoring the company's performance to determine whether the recent decline is a temporary setback or a sign of deeper issues. The upcoming report will be crucial for Cramer and other stakeholders in deciding their future positions on the stock.

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• “If the Fed cuts, that's just gigantic for some of our stocks,” — Jim Cramer, CNBC Investing Club

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• “I am concerned now about Costco,” — Jim Cramer, CNBC Investing Club

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This comprehensive analysis highlights the current market dynamics and the specific challenges faced by Costco, while also noting the positive developments for Nvidia and Linde.

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