Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks tumbled Thursday as concerns about eye-watering valuations in AI-linked names persisted. The S & P 500 shed nearly 1% in afternoon trading. But the market’s big laggards were in tech, as the Nasdaq retreated more than 1%. Club holdings Nvidia and Meta Platforms declined 2.8% and 2%, respectively. Investors also looked at fresh economic data that indicated a massive increase in corporate layoffs. Job cuts last month reached their highest level of any October reading in over two decades, according to outplacement firm Challenger, Gray & Christmas. The government’s ongoing shutdown is likely playing a hand in it Big Tech news: Apple is nearing a deal to use Google ‘s AI model in a revamped version of Siri, according to Bloomberg . The iPhone maker, as part of the agreement, would pay Alphabet ‘s Google around $1 billion each year. Jim called it a “terrific deal” during “Squawk on the Street” on Thursday. He added, “I love this combination,” even if there’s some debate about whether the payment should be going the other way. The partnership would be a step in the right direction for Club name Apple’s so-far rocky rollout of its generative AI offerings. Apple Intelligence, the company’s AI suite, has faced many delays. Management has postponed its AI-enhanced Siri until at least 2026. Making matters worse, Big Tech peers like Meta have continued to poach top AI talent from Apple, as well. Still, we continue to believe that Apple doesn’t need to be first to market. The company just needs to be the best. Costco premium: Shares slipped more than 1% on Thursday despite the retailer posting solid October sales. Costco ‘s U.S. core comparable sales, excluding gas price and foreign exchange fluctuations, were up 6.7% for the four weeks ending Nov. 2 — shy of Wall Street’s estimates of 7% to 8%. That’s still a strong showing, given how many consumer-focused names have stumbled recently due to concerns about the weakening consumer. Wells Fargo described the Costco figures as “good results in a choppy retail tape,” but cautioned that “everything matters at this valuation.” That makes further stock upside hard to justify, according to the analysts. But the Club holding’s premium remains a key focus. Shares currently trade at 47 times forward earnings, lower than the 52 times forward earnings figure earlier this year. This brings Costco’s multiple closer to its recent historical average. Oppenheimer analysts on Monday said the lower multiple makes Costco shares more attractive, and they view the stock’s recent decline as a buying opportunity. Jim agrees. “I want to buy Costco,” he said Monday . Although a multiple above 50 can feel “dangerous” for some investors, Jim believes it is not a good enough reason to stay away. Though the stock still trades above the Club’s cost basis, Jim doesn’t expect a major pullback. Costco deserves its premium. The retailer’s subscription-based model delivers reliable and high-margin recurring revenues that traditional retailers just can’t match. Betting partner: Disney announced Thursday that DraftKings would be ESPN’s new official sportsbook and odds provider, bringing an end to its Penn Entertainment partnership. The change will take effect Dec. 1, but a full rollout of the integration is not expected until 2026. The decision to part ways with Penn comes just two years into working together. The two entered into a partnership in August 2023, with a 10-year agreement that allowed either party to exit after the third year if certain market share goals weren’t met. Both have now mutually agreed to wind down that operation. Under the new deal, ESPN will work with DraftKings to “continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business,” said ESPN chairman Jimmy Pitaro in a statement. The partnership could strengthen Disney’s broader direct-to-consumer (DTC) strategy, where ESPN plays a crucial role in the Disney+ streaming bundle. Disney’s DTC business is viewed as a long-term driver of earnings growth. If the DraftKings alliance helps boost engagement and monetization within the ESPN ecosystem, it could serve as a much-needed catalyst for Disney’s stock. Shares are down roughly 1% year-to-date, compared to the S & P 500’s 14.5% advance. Up next: Club holding Texas Roadhouse reports earnings after Thursday’s close. Qnity , the new Club name that just spun off from DuPont , is scheduled to hold a business update call after the close. (DuPont reported pretty solid earnings before the bell.) There aren’t any portfolio names on Friday morning’s earnings schedule. But we will hear from Constellation Energy, KKR , Enbridge , and Duke Energy . The University of Michigan is out with its latest consumer sentiment report at 10 a.m. ET. Investors will hear from central bank officials, with New York Fed President John Williams delivering a keynote at a European Central Bank conference at 3 p.m. ET. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . 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https://www.cnbc.com/2025/11/06/apples-ai-roadmap-looks-brighter-plus-costco-delivers-upbeat-sales-numbers.html
