economy
February 24, 2026
We're buying 2 stocks in the beat-up financial sector
Bank stocks are getting unfairly clobbered by fears of AI disruption.
TL;DR
- Jim Cramer's Charitable Trust is increasing its holdings in Capital One (COF) and Wells Fargo (WFC).
- The purchases are driven by the belief that fears of AI negatively impacting these financial institutions are overblown.
- The trust is buying back Capital One shares previously sold and adding to its Wells Fargo position at attractive valuations.
- Palo Alto Networks (PANW) is being downgraded from a buy-equivalent rating to a sell rating for portfolio management reasons, not due to a negative outlook on AI's impact on cybersecurity.
- The trust believes AI will ultimately be a net positive for big banks, driving productivity and efficiency.
- A report suggesting AI could negatively affect credit card companies via stablecoins was seen as a potential overreaction, particularly for Capital One.
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