Squawk on the Street: Cramer’s Morning Take—Costco (1/9/26)

Podcast: Squawk on the Street
Host(s): CNBC (Jim Cramer)
Date: January 9, 2026
Episode: Cramer’s Morning Take: Costco

Episode Overview

In this concise morning segment from “Squawk on the Street,” Jim Cramer shares his outlook on the market, with a particular focus on Costco’s recent movements and performance. The episode, part of the CNBC Investing Club morning meeting, discusses the importance of membership renewals, online signups, and investor expectations around Supreme Court tariff decisions that affected market sentiment. Cramer offers candid views on why Costco is currently his favorite stock pick and what factors might act as catalysts for further growth.

Key Discussion Points & Insights

1. Supreme Court Decision Impacting Market Sentiment

• Timestamps: [00:52]–[01:07]

  • Cramer highlights the market’s anticipation for a Supreme Court decision on tariffs, which was expected to influence several stocks, including Nike and Costco.
  • Both companies had gains but saw pullbacks after it became clear the decision would not come that day.

  “I think people were looking yesterday for this potential Supreme Court decision on tariffs...and we saw a little bit of a pullback in both stocks shortly after 10 when we learned we're not going to learn right and see it today.”
  — Jim Cramer [00:52]

2. Costco’s Member-Focused Strategy

• Timestamps: [01:07]–[01:33]

  • Cramer emphasizes Costco’s commitment to returning money to its members, believing this move will further boost membership and support future growth.
  • He critiques the company’s story-telling to investors, suggesting room for improvement.

  “They want to return the money to the members and that will boost membership when people see them doing something like that. And this again is become my favorite name for now.”
  — Jim Cramer [01:08]

3. Membership Renewal as a Growth Indicator

• Timestamps: [01:23]–[01:33]

  • Cramer notes some softness in membership “re-ups”—renewals—but maintains a bullish stance, citing the potential for a sharp upside if renewal rates pick up.
  • Draws parallels to previous favorite picks, framing Costco as a “coiled spring.”

  “I think the re ups renewals. Yeah, yeah, renewal rate. And I just think that this is... a coiled spring because once it gets one number right, that one new number people going to go crazy.”
  — Jim Cramer [01:29]

4. Strength in Online Membership and December Sales

• Timestamps: [01:52]–[02:00]

  • Growth in online signups is outpacing in-store membership, and December’s monthly sales were particularly strong.

  “And it's the online signups. It's not really people that go into the stores. It's people that are online and shop and they had really strong December monthly sales.”
  — Jim Cramer [01:52]

5. Investor Communication and Narrative

• Timestamps: [02:00]–[02:10]

  • Cramer laments the lack of compelling storytelling from Costco management but believes in the underlying numbers.

  “They also said they don't tell better stories. We don't have Richard Clanton tell the story he would tell, good or bad. I just think the narrative is told poorly right now.”
  — Jim Cramer [02:00]

Notable Quotes & Moments

• On the Impact of News Delays:
  “We saw a little bit of a pullback in both stocks shortly after 10 when we learned we're not going to learn right and see it today.” — Jim Cramer [00:59]
• On Costco’s Upside Potential:
  “It is a coiled spring because once it gets one number right, that one new number people going to go crazy.” — Jim Cramer [01:33]
• On Online Membership Growth:
  “It's not really people that go into the stores. It's people that are online and shop and they had really strong December monthly sales.” — Jim Cramer [01:54]

Timestamps for Key Segments

• 00:45 — Cramer starts his morning take.
• 00:52 — Market expectations of the Supreme Court tariff decision & market pullbacks.
• 01:07 — Costco’s member returns and overall thesis.
• 01:23 — Discussion on renewal rates; Costco as a "coiled spring."
• 01:52 — Strong online signups and December sales.
• 02:00 — Critique of Costco’s management narrative.

Summary Takeaway

Jim Cramer’s morning take is enthusiastic on Costco’s prospects, highlighting the company’s focus on returning value to members, strong online growth, and resilient sales. While membership renewal rates are somewhat soft, Cramer sees upside potential if the company delivers just one strong metric. He encourages investors to keep an eye on how storytelling and communication from Costco management could improve market sentiment further.

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