Jim Cramer considers buying energy stock amid rising power demands

On Monday, April 28, 2025, Jim Cramer held a Morning Meeting as part of the CNBC Investing Club, providing insights on market movements, particularly regarding the S&P 500 index, which faced a downturn following a recent rally. Observing a drop of about 2.5% since President Donald Trump's announcement of 'reciprocal' tariffs, Cramer noted fluctuations in stock performances, including a particular focus on General Electric’s new venture, GE Vernova, as the energy sector grapples with the challenges posed by rising power requirements and the impact of artificial intelligence. Cramer highlighted that India may lead in establishing a new trade agreement, which could influence energy markets positively. Additionally, he remarked on potential benefits for companies like Boeing within this economic environment, despite challenges outlined by analysts from HSBC, who raised concerns about high-price-to-earnings stocks being particularly vulnerable. The discussions also touched upon Eli Lilly's double downgrade to sell by HSBC, raising alarms about the excessive optimism surrounding its stock outlook. Cramer and his analytical team, guided by director Jeff Marks, expressed caution regarding investments in high-multiple stocks, substantiating their viewpoint on the general economic landscape. The session concluded with rapid-fire commentary on other stocks, including Domino's Pizza and On Holding, illuminating ongoing trends in market sectors. As the markets react to evolving trade dynamics and analysts reassess company valuations, Cramer's observations underscore a broader narrative regarding investment strategies in volatile economic times. The emphasis on energy stocks indicates a strategic pivot aligning with the needs of a changing market influenced by various external factors, such as geopolitical developments and technological advancements in energy production.