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CNBC’s Jim Cramer on Wednesday said that some of the biggest tech companies in the world need to adjust to the changing market.
“It’s time to recognize that FAANG names got too big,” he said.

CNBC’s Jim Cramer on Wednesday said that some of the biggest tech companies in the world need to adjust to the changing market.
“It’s time to recognize that FAANG names got too big. Can they turn things around? Sure, but they’ve really got to change the way they operate,” he said, referring to his acronym for Facebook-parent Meta, Amazon, Apple, Netflix and Google-parent Alphabet.

Cramer previously said that financial stocks could overtake tech stocks as the new market leaders in the current high-interest-rate environment. Banks benefit from higher interest rates because they can earn more on loans.
High-growth tech companies such as FAANG names, meanwhile, are hurt by higher interest rates because their stocks trade on the promise of higher returns down the line — a risk that investors typically aren’t willing to take in a turbulent economic environment.
Cramer’s comment comes on the heels of several disappointing earnings results from Big Tech firms. Alphabet missed third-quarter revenue and profit expectations on Tuesday, while Microsoft issued weak quarterly guidance that weighed down its stock.
Meta Platforms reported a wide miss on third-quarter earnings after the close on Wednesday, which sent its stock tumbling over 18% in after-hours trading.
Netflix has fared better than its tech peers, reporting a third-quarter top-and-bottom beat on Oct. 18 along with substantial subscriber growth. The company also provided updates on its plans to crack down on password sharing and introduce a new ad-supported tier.

Cramer said that the streaming giant’s plans for the latter initiative exemplify the type of innovation FAANG companies need to stop their downward trajectory.
“Forget being leaders — Big [Tech] stocks are now followers in a post-Covid era where we’re learning that their earnings were far more inflated by the pandemic than we knew,” he said.
Amazon is slated to report its third-quarter earnings on Thursday.
Disclaimer: Cramer’s Charitable Trust owns shares of Alphabet, Apple, Amazon, Meta and Netflix.

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Monday – Friday, 6:00 – 7:00 PM ET

It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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FLEX LNG Ltd: “Jimmy Chill likes FLEX. Why? Because it’s got a product that we all need.”

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Coinbase Global Inc: “People actually trust it, okay? They believe in it, and that is going to keep it from going down much more. … Not enough of a reason for me to own it.”

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James Patten, a defendant in the case of the $100 million New Jersey deli, is benefiting from an agreement from another shell company.
Patten earns thousands a month in consulting agreements with the shell company Med Spa Vacations through his firm Benchmark Capital. Med Spa wasn’t mentioned in his indictment.
Prosecutors and regulators have accused Patten of not properly disclosing consulting relationships with the company that owned the deli and another shell company.

Courtroom sketch of James Patten, left, and attorney Ira Sorkin at N.J. District Court in Camden, N.J., Oct. 11, 2022
Source: Elizabeth Williams

One of the men charged in an alleged stock manipulation scheme involving shell companies and a small-town New Jersey deli is making thousands of dollars from another shell company, according to a securities filing. 
James Patten, was charged with federal crimes last month for allegedly inflating the value of Hometown International, which owned the deli, and E-Waste, which had no actual business.

Patten is also involved in a company called Med Spa Vacations, which reported expenses of $93,999 and no revenue during the quarter that ended Sept. 30. Med Spa, which wasn’t named in the indictment, also pays $2,500 a month in consulting fees to Patten’s firm Benchmark Capital.
Benchmark Capital also used to receive $5,000 a month in consulting fees from E-Waste, according to the Justice Department. A complaint from the Securities and Exchange Commission said the Benchmark Capital agreement with E-Waste “failed to disclose the relationship between Patten and E-Waste.”
Patten’s name hasn’t appeared in Med Spa filings.
Patten attorney Ira Sorkin declined to comment. A spokesperson for the Justice Department could “only confirm the currently pending charges.”
Prosecutors accused Patten, along with father-and-son duo Peter Coker Sr. and Peter Coker Jr., of enriching themselves through consulting agreements that the SEC says lacked proper disclosure. Authorities also said they artificially inflated the market value of Hometown International and E-Waste by 939% and 19,900% respectively.

Around half of Med Spa’s shares are owned by Global Equity Limited, where Patten is a senior vice president. About 10% of the company is held by Coker Sr.’s wife, Dina Coker, and 16.63% is owned by Hometown Global Services, which is controlled by Coker Sr.
Coker Sr. had a similar consulting agreement with Med Spa that paid him $2,500 between February and June 2021 through Tryon Capital, a company Coker Sr. controls. Tryon was also Coker Sr.’s vessel of choice for funneling funds from both Hometown International and E-Waste, according to his indictment.
The SEC said the consulting agreements for E-Waste and Hometown International were used to “reap ill-gotten gains from the scheme” and that the consulting services promised were either “unnecessary, not performed, or were in furtherance of the scheme.”
Med Spa, despite its zero revenue, has a long list of consulting agreements. One since-terminated deal paid $4,000 a month to Med Spa’s former president Elliot Mermel through his company, Benzions. The agreement was terminated in 2021.
Mermel, who served as president for both E-Waste and Med Spa Vacations, has a colorful business career, including a company that raised crickets as human food and a cannabis company that partnered with Paul Pierce, the former Boston Celtics superstar. 
Med Spa was also briefly led by Patten’s longtime friend John Rollo, another former E-Waste president and a Grammy-award winning producer who worked most recently as a patient transporter at a New Jersey hospital.
Neither Mermel nor Rollo were indicted alongside their associates for the E-Waste fraud allegations. They were succeeded in their Med Spa leadership by Irwin Schneidmill.
Schneidmill declined to comment when contacted by CNBC. Rollo’s phone number, listed by the SEC, had been disconnected, and Mermel did not immediately respond to a request for comment.
Like the other two shell companies, Med Spa Vacations had an initial business goal—in this case, “specialized wellness vacation packages”—that was abandoned in favor of initiating a reverse merger. The indictment notes the E-Waste and Hometown International reverse mergers as the method by which the men would earn “significant profit resulting from market manipulation.”
Med Spa is currently in search of a company with which to complete a reverse merger.

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Rihanna teased her single “Lift Me Up” for the upcoming Marvel sequel “Black Panther: Wakanda Forever.”
The release marks her first solo music since her album “Anti” in 2016.
The song is a tribute to actor Chadwick Boseman, who starred in the first “Black Panther” movie.

TOPSHOT – Singer/actress Rihanna attends the World Premiere of OCEANS 8 June 5, 2018 in New York.
Angela Weiss | AFP | Getty Images

After a six-year hiatus, Rihanna is set to release new music for the forthcoming Marvel sequel “Black Panther: Wakanda Forever.”
The singer, 34, confirmed her involvement with the film Wednesday by teasing audio for the soundtrack’s lead single, “Lift Me Up,” on Twitter. The song will be released Friday, ahead of the film’s premiere Nov. 11.

The song is a tribute to actor Chadwick Boseman, who starred in the original “Black Panther” movie and died in November 2020 at age 43 after a yearslong battle with colon cancer.
It marks Rihanna’s first new music as a solo artist since her 2016 album, “Anti.”
The song was co-written with Nigerian singer-songwriter Tems, Oscar-winning composer Ludwig Gransson and “Black Panther” director Ryan Coogler, according to Disney-owned Marvel. It will be released on Rihanna’s Westbury Road label in partnership with Roc Nation, Def Jam Recordings and Hollywood Records.
“After speaking with Ryan and hearing his direction for the film and the song, I wanted to write something that portrays a warm embrace from all the people who I’ve lost in my life. I tried to imagine what it would feel like if I could sing to them now and express how much I miss them,” Tems said in a statement. 
“Rihanna has been an inspiration to me, so hearing her convey this song is a great honor,” Tems added.

The soundtrack for “Black Panther: Wakanda Forever” will be available Nov. 4.
Since her “Anti” album, the nine-time Grammy Award-winning singer has established herself as a successful businesswoman and was named the world’s youngest self-made billionaire woman in the U.S. by Forbes. Much of her wealth has come from her lucrative brands including Fenty Beauty and Savage x Fenty.
The singer will also be returning to giving live performances. In September, it was announced that she’ll perform at the Apple Music Super Bowl Halftime Show in February.
Correction: This story was updated to include a photo of Rihanna.

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Maven Clinic, a virtual women and family clinic, is allowing companies to offer their employees an extensive online network of fertility, pregnancy, adoption, parenting and pediatrics services.
The overturning of Roe v. Wade, the effects of the Covid-19 pandemic and more individuals valuing the DEI efforts of their employer have led to a demand increase for Maven’s health-care services.
After the Supreme Court abortion decision, interest from corporate clients for benefits including travel reimbursement, spiked by 67%.

Founder and CEO of Maven Clinic Kate Ryder, the first female health tech unicorn, valued at $1 billion.
Daniel Zuchnik | Getty Images Entertainment | Getty Images

Women account for half of consumers, hold power over 80% of household financial decisions and make 70% of health-care-related decisions in their families – but their access to proper health care often comes up short. 
Especially in the post-Roe world, women are increasingly turning to their employers for proper health-care benefits for themselves and their families. Maven Clinic, a virtual women and family clinic, is allowing companies to offer their employees an extensive online network of fertility, pregnancy, adoption, parenting and pediatrics services.

“With our platform, patients have access to all these different types of care providers – adoption coach, surrogacy coach, OBGYN, midwife, doula – they can get quick support within 10, 20 minutes as well as talk to people they trust who share their lived experiences,” Kate Ryder, CEO and founder of Maven Clinic, told CNBC reporter Leslie Picker at the CNBC Work Summit on Wednesday. “Our care advocates are helping them navigate the benefits or the laws and ask whether their health plans have done anything to add them in this new and changed landscape.”
Ryder’s goal for Maven is to put women first when it comes to their health care, filling any gaps they may experience. It’s the largest virtual platform for women’s and family services.
“Women’s health and family health has always been underserved,” Ryder said.
Since Ryder founded Maven Clinic in 2014, the company has raised more than $200 million and was valued at $1 billion after its most recent round of funding in August 2021, making it the first female-focused health startup to reach this milestone. Its services have helped support more than 15 million members in over 175 countries, and the platform supports over 30 provider specialties in 30 provider languages. Maven Clinic was ranked No. 19 on the 2022 CNBC Disruptor 50 list.
Since the Supreme Court overturning Roe v. Wade in June, the company saw a 67% increase in opportunities from companies looking for travel benefits, as well as other health-care support for pregnant women.

Ryder said Maven Clinic was anticipating the overturning of Roe v. Wade after SB-8 in Texas in 2021, which banned virtually all abortions and health care relating to abortions after six weeks.
“Because we’re in the market, because we had a platform that we were able to access, we were able to jump up and step up with our products,” Ryder said. 
Maven Clinic has experienced a broader increase in demand for its products over the past two years amid a pandemic and tight labor market, which she attributed to the accessibility of its virtual platform as well as its outspoken support of health equity.
Amid the Great Resignation, more companies are adding fertility benefits to their list of perks to remain competitive as part of diversity, equity and inclusion efforts. Services like in vitro fertilization (IVF) treatment are offered at 42% of large employers in the U.S. and 27% of small employers as of 2020, and 19% of large employers and 11% of small employers offered egg freezing. 
In addition, 80% of people say they look at a company’s DEI efforts when considering an employer, and 40% of people would be willing to switch jobs if they feel their employer does not prioritize reproductive rights, according to Ryder.
“All the major medical associations have come out … saying this is a health access issue, a health-care issue,” Ryder said. “It’s also just the right thing to do – to make sure that your families, at a time when they’re really vulnerable, are getting all the right access and support.”
The Covid-19 pandemic has also disproportionately affected communities of lower economic status and people of color, making their ability to find proper care more difficult. 
In the pandemic’s wake, there has also been an exodus of women employees, as well as women leaders who have left their companies and switched jobs at some of the highest rates seen in years. The number of women currently in the workforce is similar to numbers from the 1980s, reversing decades of progress.
“If you are a business trying to grow your bottom line, it’s about the people,” Ryder said. “It’s about health equity and how, for instance, if you have a big virtual care platform, it is easier to actually really tackle this, because you have a chance to have a provider workforce.” More

Over the past year, down payments in the country’s 50 biggest metros have grown by more than 35%, according to a LendingTree report.
Typically, down payments under 20% are more costly for borrowers, resulting in bigger loans, higher interest rates and mortgage insurance.
However, with relatively high home prices, many borrowers are shelling out less than 20%.

nd3000 | iStock | Getty Images

Despite signs of a cooling housing market, home prices are still relatively high, resulting in bigger down payments. 
Over the past year, average down payments in the country’s 50 biggest metros have grown by more than 35%, according to a LendingTree report, based on 30-year fixed-rate mortgage data from Jan. 1 through Oct. 10, 2022.

While high home prices and interest rates may push some buyers to the sidelines, those still in the market may have “deeper resources,” particularly if they’re downsizing, explained Keith Gumbinger, vice president of mortgage website HSH.
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Here are the top five metros with the largest down payments.

5 metros with the biggest down payments

In 2022, these five metros have had the highest down payments based on LendingTree mortgage data from from Jan. 1 through Oct. 10, 2022.

San Jose, California: $142,006
San Francisco, California: $131,631
Los Angeles, California: $104,749
San Diego, California: $98,593
Seattle, Washington: $96,056

With higher average mortgages and annual household incomes, it’s not surprising these metros topped the list. And these down payments represent a large share of yearly earnings.

How a bigger down payment lowers mortgage costs

“In general, the more you can afford to put down, the lower your ultimate costs are going to be,” said Gumbinger.
A larger down payment means a smaller mortgage, which can “certainly help offset the cost of rising interest rates to a degree,” he said.
While certain kinds of mortgages allow down payments as low as 3%, you’ll have to pay mortgage insurance on loans with less than 20% down, and you may see higher interest rates, Gumbinger said.
The average interest rate for 30-year fixed-rate mortgages of $647,200 or less is still above 7% for loans with a 20% down payment.
“More is generally better because that helps to lower your costs overall,” he added.
In 2021, the median down payment was 13%, with nearly 4 in 10 using proceeds from a previous home sale, according to a 2022 report from the National Association of Realtors.

With high prices, many buyers struggle to put down 20%

Despite softening demand, home prices are still “significantly higher than two years ago,” with many buyers struggling to put 10% or 20% down, said Melissa Cohn, regional vice president at William Raveis Mortgage.
The median home sales price was $454,900 during the third quarter of 2022, compared to $337,500 during the third quarter of 2020, according to Federal Reserve data.
Many buyers take advantage of lower down payment options, she said, such as 3% or 5% for conventional mortgages or 3.5% for Federal Housing Administration loans.
“With a smaller down payment, it’s more expensive every which way,” Cohn said. “But for many people, it’s the only way they can afford to get into their home.” 
While smaller down payments mean higher interest rates and mortgage insurance, home buyers may reduce these expenses in the future, she said. When interest rates drop, there may be a chance to refinance, and buyers may remove mortgage insurance once they reach 20% equity in the home, Cohn said.

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Club holding Humana (HUM) got an upgrade on Wall Street on Wednesday, exactly one week before the health insurer reports earnings. Deutsche Bank took Humana to a buy rating from a hold, citing its “leading position in Medicare Advantage,” a key reason we own the company as a defensive play in this tough economic environment. Deutsche Bank analysts also raised their price target on Humana to $576 per share from $514, following an event held by the bank, during which six regional independent brokers evaluated the company and its competitors. The brokers, according to the analysts, highlighted that Humana’s Star Ratings upgrade by the Centers for Medicare & Medicaid Services (CMS) could lead to a “multi-year competitive advantage.” These so-called Star Ratings are designed to help consumers evaluate the quality of Medicare Advantage (MA) and Medicare Part D prescription drug plans, according to the CMS . MA plans are offered by government-approved private companies, which must adhere to the rules set by Medicare , the federal health insurance program for folks 65 and older and certain younger people with disabilities or permanent kidney failure. Shares of Humana rose about 1.5% on Wednesday to roughly $538 each. Year-to-date, the stock has outperformed the broader market, rising 15.8%. That’s a stark contrast from the S & P 500 ‘s decline of more than 19% in 2022. Humana stock was left for dead at the beginning of the year when it warned about Medicare Advantage growth. But since then, it has righted the ship. In Deutsche Bank’s research note, analyst George Hill broke down several crucial points that lead to his upgrade and price target boost of Humana. Humana is “poised to take market share” in Medicare Advantage this enrollment season. The health insurer will likely benefit from tighter rules on health-care plan offerings, which will lead to less churn, or the rate at which customers stop subscribing to a service. While competitor UnitedHeatlh (UNH) could see member growth headwinds, Humana shouldn’t face such challenges. Rather, Humana is “paving the way for market leading growth in 2024, if not 2023.” Despite the optimism, Deutsche Bank did trim Humana’s 2022 earnings estimate to $25.12 per share from its previous $25.27. However, that’s still higher than the $24.94 consensus. The note cites downside risks including possible pricing pressure in Medicare Advantage, marketing rules changes that could lead to slower MA market growth, and health-care reform that could impact drug prices. We’ll be digging into Humana earnings when it reports fiscal third quarter results on Wednesday, Nov. 2 before the opening bell. Analysts are anticipating earnings-per-share of $6.28, a 30% increase from the prior year, and total revenue growth of 9% to $22.76 billion, according to Refinitiv estimates. Bottom line Deutsche Bank deciding to join the bull camp on Humana is welcome news that further supports our conviction on the stock, which we own for its recession-resistant qualities. Unlike many other sectors that have been suffering this year due to macroeconomic challenges, health care is more safeguarded in an economic downturn since people prioritize their health and are less likely to skip on their health insurance payments. Furthermore, we believe Humana offers a superior Medicare Advantage package and represents new leadership in the health care industry. Here’s our bull case. Humana experienced a huge turnaround from its lows in January when it warned of slower membership growth. In February, the Medicare provider announced plans to reduce costs and invest $1 billion worth of cost savings into its MA program. We believe this momentum can continue, especially since we see Humana’s ability to expand its offerings as a benefit that could help it gain market share in a competitive healthcare landscape. Earlier this month, Humana released the details of its newly expanded and enhanced Medicare Advantage plan offering. The health insurer said it has the opportunity to grow its Medicare offerings to 4.6 million Medicare-eligible individuals across the country. At the same time, we acknowledge that the stock has had a great run since we started buying it in April . We’re more likely to lock in some profits on our big gains into continued strength than add to our position. (Jim Cramer’s Charitable Trust is long HUM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

In this photo illustration, Humana Inc. logo seen displayed on a tablet.
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The Justice Department’s antitrust probe of the PGA Tour also includes Augusta National and the United States Golf Association, the Wall Street Journal reported.
A USGA spokesperson confirmed to CNBC that it had been contacted by the Justice Department.
The managing director of LIV Golf had warned that league would start its own majors after speculation that its players might be barred from the Masters .

A ball Masters golf ball displays the length of the new rough increased to 1 3/8 of an Inch at the US Masters at the Augusta National GC in Augusta, Georgia, USA.
Stephen Munday | Getty Images

The Justice Department’s antitrust investigation of the PGA Tour’s actions against the upstart LIV Golf league has also ensnared the Augusta National Golf Club and the United States Golf Association.
The federal probe first came to light in July after the PGA Tour indefinitely suspended 17 players, including Phil Mickelson, who signed on to play with LIV Golf, which is funded by the Saudi Arabia Public Investment Fund and has been luring players with record prize money.

On Wednesday, the Wall Street Journal reported that the probe also included Augusta National, which oversees the Masters Tournament, and the USGA, which is the governing body for golf courses and clubs in the U.S. and Mexico and conducts the annual U.S. Open major.
A USGA spokesperson confirmed to CNBC that it had been contacted by the Department of Justice and said it is complying with all requests. The association declined to comment on the matter.
Augusta National and its lawyer, Craig Waldman, did not immediately respond to a request for comment.
The inclusion of Augusta National and USGA in the probe comes to light after speculation that players might be barred from the Masters Tournament because of their involvement with LIV Golf. The managing director of LIV Golf, Majed Al Sorour, had warned that LIV would start its own majors, but later walked back the comment on Twitter.
Mickelson, meanwhile, told Sports Illustrated that he “wholeheartedly” expects to play at the Masters despite his LIV Golf affiliation.

Both the PGA Tour and LIV Golf have been lobbying in Washington D.C. to state their case against the other. LIV CEO and former PGA Tour player Greg Norman met with members of Congress in September. The tour, meanwhile has paid at least $360,000 to the firm DLA Piper to fund its lobbying effort.
LIV Golf also filed its own antitrust suit against the PGA Tour in September, and the tour subsequently countersued, alleging that LIV Golf was anticompetitive because of its restrictive player contracts. The tour is currently pushing for a deposition documents turnover from the governor of the Saudi Arabia Public Investment Fund, Yasir Al-Rumayyan.
CNBC’s Jessica Golden contributed to this report.

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