Capital One Falls Nearly 3% as Cramer Sees an Opportunity

Capital One (COF) shares fell nearly 3% Wednesday as investors weighed whether Democrats would revive efforts to cap credit card interest rates after their midterm wins, leaving the stock behind a broader advance in financial shares.

Jim Cramer said the decline presented an opportunity for people who do not own COF, though he warned against rushing in before the market settled. During Wednesday’s 10:20 a.m. ET Morning Meeting, he dismissed the likelihood of a rate cap becoming law, saying previous attempts had not produced anything material. “I’m not saying go in right now,” Cramer said. “I am saying that COF is to be bought if you don’t own any.” Cramer’s Charitable Trust holds COF shares.

U.S. stocks rallied Wednesday after Democrats won the midterm elections decisively, removing a source of uncertainty for Wall Street. Cramer said investors were betting that Democratic control of the House and Senate could slow AI data center construction. He said that prospect could hurt neocloud companies while benefiting established hyperscalers by prompting them to curb capital spending and let cash flow catch up.

That outlook helped lift Amazon, Alphabet, Meta and Microsoft, while semiconductor shares and smaller cloud providers came under pressure. Micron fell 6% and CoreWeave dropped 9% Wednesday. Capital One’s decline reflected a separate investor concern: the possible return of efforts to cap credit card rates.