Jim Cramer Charitable Trust trims Meta, adds to FedEx and BNY in oversold market

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Cramer Trust trims Meta, adds FedEx & BNY

Highlights

Jim Cramer's Charitable Trust sold 35 Meta shares at about $750 each, cutting its weighting to 4% from 4.6%, after a more than 12% rally this week.
Meta's price target was raised to $800, but its rating was downgraded as AI-driven gains and negative free cash flow through 2028 bring valuation and funding risks.
Proceeds from Meta were allocated to buy 90 FedEx shares at $295 and 80 BNY shares at $150 due to market oversold signals, with FedEx favored over UPS for lower Amazon exposure.

Portfolio changes and rationale

As reported by CNBC Investing, Jim Cramer’s Charitable Trust is selling 35 shares of Meta at about $750 each, while buying 90 shares of FedEx at about $295 and 80 shares of BNY at about $150.

After the trades, the trust will hold 215 shares of Meta, cutting the stock’s portfolio weighting to 4% from 4.6%. FedEx will rise to 390 shares, lifting its weighting to 2.8% from 2.2%, while BNY will increase to 480 shares and 1.8% of the portfolio from 1.5%.

The trust says it is rightsizing its Meta position after the stock gained more than 12% this week, driven by enthusiasm for the company’s Muse AI agent. It is also raising its price target on Meta to $800 from $700, but downgrading the stock to its hold-equivalent 2 rating because upside to the new target appears more limited around current levels.

It remains positive on Muse as evidence supporting Meta’s heavy AI investment, but says a more balanced stance is warranted after the shares rallied more than 14% since early September. The trust also points to the risk that early traction for Muse could encourage even more aggressive AI infrastructure spending, with FactSet estimates showing free cash flow remains negative on an annual basis through 2028.

The Meta sale is also meant to guard against the possibility that the company could issue stock to fund that spending. On the shares purchased in April 2022, the trust says the trim locks in a gain of roughly 250%.

Why FedEx and BNY are getting fresh cash

With the S & P Short Range Oscillator showing the market is oversold, the trust says its discipline is to offset trims into strength with purchases elsewhere. That is why it is redirecting proceeds from the Meta sale into FedEx and BNY.

FedEx is being added after its shares lagged Monday’s rally and fell alongside UPS, following Bank of America’s price-target cut and lower estimates tied to a steeper-than-expected decline in Amazon volumes. The trust argues the read-across is misplaced because UPS and FedEx have different exposure to Amazon.

According to the trust, Amazon represented 10.6% of UPS sales in 2025, making it a still meaningful part of that business even as UPS works to reduce lower-quality volume. FedEx, by contrast, does not list Amazon as a key customer in its annual report, suggesting any revenue contribution is not material, and the trust says that supports its view that FedEx should not be penalized for an issue specific to UPS.

BNY is also being increased after a selloff in financial stocks. The trust says this purchase follows two smaller buys last week after pressure on the group tied to disappointing updates from Bank of America and other firms at investor conferences, and that a review of BNY’s presentation did not reveal anything negative or enough to change its thesis on the company’s operating leverage story.

In our earlier coverage of Meta’s Muse AI agent launch, we explained how early user traction and a paid subscription model fueled optimism that Meta could monetize AI beyond advertising. We also noted that the post-launch surge in Meta shares helped power a broader tech rally, as investors began to price in increased AI-related infrastructure demand alongside new software revenue opportunities.

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