Stocks had a strong start to the year, with the S & P 500 jumping 10.16% in the first three months, marking the index’s best first quarter in five years. The Dow Jones Industrial Average and Nasdaq also hit records during the quarter, bolstered by strong U.S. economic data and investor excitement around artificial intelligence. The CNBC Investing Club capitalized on buying opportunities, booked profits in outperforming stocks, and initiated two new positions during the quarter. Nvidia was the top performer, jumping 82.5% as it continued to ride the wave of investor enthusiasm for generative AI. Meta Platforms, Walt Disney, and Eli Lilly rounded out the top four winners for the quarter.
Meta Platforms climbed 37.2% in the first quarter, fueled by strong earnings results and the declaration of Meta’s first-ever quarterly dividend. Walt Disney rose 35.5% despite an ongoing proxy fight with activist investor Nelson Peltz, with Jim Cramer attributing the rally to outside pressure from Trian Partners. Eli Lilly jumped 33.5% on the back of its growth prospects in the GLP-1 drug category, driven by the success of its diabetes and weight loss treatments. Despite their strong performances, shares of Meta Platforms, Disney, and Eli Lilly have seen some declines as the broader market rally shifted to more cyclical sectors.
On the other hand, Apple was the worst performer in the CNBC Investing Club portfolio, dropping 10.9% in the first quarter amid concerns about softening demand for the iPhone in China and regulatory challenges. Foot Locker followed as the second-worst performer, declining 8.5% after a steep sell-off following disappointing quarterly results. Starbucks also struggled, with shares dropping 4.8% due to challenges in key markets at home and overseas. Palo Alto Networks rounded out the list of laggards, falling 3.7% as the cybersecurity company shifted its business strategy and experienced a post-earnings sell-off.
Despite the challenges faced by some of the laggards in the portfolio, the CNBC Investing Club with Jim Cramer remains focused on identifying opportunities and making informed decisions. Trade alerts are provided to subscribers before any trades are executed in the charitable trust’s portfolio, with Jim Cramer waiting a specified period after issuing an alert before buying or selling a stock. As a subscriber, members receive timely insights and analysis to help navigate the ever-changing market landscape. While past performance is not indicative of future results, the CNBC Investing Club is committed to providing valuable information and resources to help investors make informed decisions.
