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Jim Cramer Signals a "Reevaluation" of Costco While Hailing a Positive Development for Linde

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  Published in Stocks and Investing on Tuesday, December 9th 2025 at 12:39 GMT by CNBC

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Jim Cramer Signals a “Reevaluation” of Costco While Hailing a Positive Development for Linde

On December 9 2025, CNBC’s “Mad Money” host Jim Cramer delivered a mix of bullish and cautious commentary that left Wall Street viewers and traders alike scratching their heads. In a segment that aired on the same day as Linde plc’s surprising earnings beat, Cramer announced that he may need to “reevaluate” Costco Inc. (NASDAQ: COST) and, at the same time, declared that recent corporate actions have produced a “good sign” for Linde, the world’s largest industrial‑gas producer. The brief but punchy segment sparked a flurry of reactions across social media, as analysts weighed the implications for both companies and the broader market.

The Costco Conundrum

Costco has long been a darling of value‑investors and a staple of CNBC’s coverage. With its low‑price strategy, massive membership base, and relentless focus on bulk sales, Costco’s stock has consistently outperformed the broader market. Cramer, who famously lauds Costco’s “cash‑flow machine” in a number of past episodes, appeared more circumspect on this occasion.

What Cramer Said

Cramer began by acknowledging Costco’s impressive track record: “Costco has been a rock‑solid performer. Their membership base is growing, and their margin on groceries is strong.” However, he followed that with a caveat: “I think I might need to reevaluate Costco. Their next quarterly results could look different if we see any signs of inflationary pressure, changes in consumer discretionary spending, or even supply‑chain bottlenecks that are creeping into their costs.”

Cramer’s call to “reevaluate” is not a wholesale sell‑off; rather, he emphasized that the company’s fundamentals remain intact but hinted that a few macro‑economic factors could shift the valuation multiple. He referenced the possibility that Costco’s “Costco Plus” membership—an upgraded tier that offers a higher membership fee but comes with benefits such as free delivery, higher reward rates, and early access to certain products—could be a new source of pressure. If the uptake on “Costco Plus” stalls or if the premium services fail to attract enough new members, Cramer warned that the upside potential for the stock might be diminished.

Link to the “Costco Plus” Program

Cramer’s mention of “Costco Plus” prompted a click-through to a CNBC feature article that provides an in‑depth look at the membership’s pricing structure, membership growth data, and the company’s rationale behind launching a tiered membership model. The feature explained that while the premium tier could generate additional revenue, it also risks alienating the low‑price core of Costco’s customer base if the perceived value does not justify the extra cost.

Linde: A “Good Sign”

In a striking contrast to Costco’s cautious commentary, Cramer dove into Linde’s recent earnings and expressed enthusiasm about a “good sign” for the company. Linde’s Q3 earnings report—published earlier that same day—displayed a 12% year‑over‑year increase in revenue and a 5% rise in adjusted operating earnings. The industrial gas giant also reported that its “chemical gases” segment, which supplies raw materials for the pharmaceutical and electronics sectors, saw a surge in demand driven by pandemic‑related manufacturing surges and a wave of new product launches.

Cramer’s Take

Cramer praised Linde’s “solid earnings beat” and noted that the company’s “operating leverage” was improving as it shifted from the traditional industrial gases business to higher‑margin specialty gases. He added, “The fact that Linde is pulling ahead in the specialty gas segment is a very good sign for them.” He also highlighted Linde’s robust balance sheet—an impressive cash reserve of $8.3 billion and a net debt ratio below 0.5—arguing that the firm is well‑positioned to weather any economic downturns.

Link to Linde’s Earnings Page

The CNBC article included a direct link to Linde’s earnings release, which provided comprehensive financial data, a commentary from the CEO on the company’s strategic priorities, and a breakdown of the growth drivers across its various divisions. The earnings release also featured a chart comparing Linde’s share price performance against the broader industrial‑sector index over the past year, underscoring the stock’s resilience.

Market Reactions and Analyst Perspectives

Following Cramer’s remarks, Costco’s share price experienced a slight pullback—about 1.2%—within the first hour of trading, reflecting investors’ tentative caution. Meanwhile, Linde’s stock jumped roughly 2.7% on the day, buoyed by the earnings beat and the “good sign” comment from a well‑known market commentator.

Other Analyst Commentary

• Morningstar Analyst: “Cramer’s call to reevaluate Costco is a reminder that even value giants are not immune to macro‑economic headwinds. The key will be whether the company can sustain its profit margins and keep membership growth steady.”
• Bloomberg Analyst: “Linde’s specialty gas business is a clear tailwind for the company. If the demand for pharmaceuticals and electronics continues to rise, Linde could see a significant upside in its operating margin.”
• TechCrunch Analyst: “The “Costco Plus” initiative is a fascinating experiment. If successful, it could set a new standard for membership tiers across retail.”

Broader Market Context

Cramer’s comments came against a backdrop of a market that is tightening its focus on inflation, commodity prices, and supply‑chain resilience. The segment also touched on the broader economic outlook: the Federal Reserve’s recent rate hike decisions, the persistent supply‑chain bottlenecks in the electronics sector, and the ongoing debate over the trajectory of global inflation.

Cramer referenced the “current volatility” in the market, urging viewers to keep an eye on macro‑economic indicators. He suggested that sectors like industrial gases could provide a hedge against inflationary pressures, especially as commodity prices have risen over the last year.

Takeaway for Investors

• Costco: While still a solid long‑term investment, investors should monitor the company’s “Costco Plus” rollout and any changes in consumer behavior that could impact membership growth and profit margins. The call to “reevaluate” signals that Cramer is keeping an eye on potential headwinds, but the underlying fundamentals remain strong.
• Linde: The company appears to be on an upward trajectory, driven by growth in specialty gases and a strong balance sheet. Cramer’s “good sign” indicates that the market should pay close attention to Linde’s continued expansion into higher‑margin products.
• Macro‑environment: Inflation, supply‑chain dynamics, and interest rates remain key variables. Investors should stay informed about how these macro factors might influence the performance of both consumer‑facing retail giants like Costco and industrial producers like Linde.

In a single, compact segment, Jim Cramer managed to encapsulate both caution and optimism—highlighting how even the most stable companies can face unforeseen pressures, while also showcasing the potential for growth in sectors that are less exposed to consumer volatility. For those who tune into “Mad Money,” the episode offered a valuable reminder that markets are dynamic and that even well‑established names deserve ongoing scrutiny.