Jim Cramer on Taiwan Semiconductor, Netflix, and Other Stocks

3. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 83

Cramer said that the Charitable Trust owns Wells Fargo & Company (NYSE:WFC) and commended the CEO on his well-thought strategies. Here’s what he said:

“Then there’s Wells Fargo. We’ve gotten a series of strong economic numbers of late, which makes the Fed watchers assume that we’re looking at a series of slow and deliberate rate cuts. Nothing fast. Maybe we won’t even get one in November.

What happens to Wells Fargo then? We own this for the Charitable Trust. And if you really believe the rate cuts will slow to a crawl, I think it’s reasonable to be concerned. But what if, heaven forbid, the CEO set up Wells Fargo’s portfolio precisely for this moment? And that’s what CEO Charlie Scharf told us on Tuesday, we went up to see him. Turns out Scharf’s just real smart. He figured this stuff out. You weren’t levered to a group of Fed officials who were playing with dots… You’re dealing with someone smarter than you are…”

Wells Fargo (NYSE:WFC) is a major global financial services institution, offering a range of banking, investment, mortgage, and financing solutions. With assets exceeding $1.9 trillion, the company plays a significant role in the financial sector.

On October 11, the company shared its financial results for the third quarter, reporting a net income of $5.11 billion. The figure marks a decrease from the $5.77 billion recorded in the same quarter last year, although it exceeded analysts’ forecasts. Revenue for the quarter amounted to $20.37 billion, also down compared to the previous year, yet slightly above expectations. Additionally, the company has a history of returning excess capital to shareholders, highlighted by a 14% increase in the common stock dividend for the third quarter and the repurchase of $3.5 billion in common stock during this period. Over the first nine months of the year, the total stock repurchased exceeded $15 billion, which was a more than 60% increase compared to the same timeframe last year.

In an appearance on Mad Money on October 15, Wells Fargo’s (NYSE:WFC) CEO Charles Scharf discussed the current economic landscape. He noted a gradual rise in consumer spending across both debit and credit transactions and confirmed that deposit balances remain solid, with credit quality continuing to perform well. Scharf expressed admiration for the Federal Reserve, acknowledging its effective management of the economy amid challenging conditions.

While Scharf emphasized the importance of quarterly results, he remarked that the market tends to focus excessively on these reports compared to management’s perspective. He highlighted the stock’s performance, which fell after the previous quarter’s results but rebounded following the latest announcements, despite trends and business strategies remaining largely unchanged.