Startups

Jim Cramer praises 'Magnificent Seven' stocks, says last week's mega-cap tech sellers missed out – CNBC


  • CNBC’s Jim Cramer on Thursday reaffirmed his faith in the “Magnificent Seven” tech stocks, saying investors who sold these companies after recent dips may now be regretful.
  • “Days like today remind you that you can’t panic and flee from the entire asset class just because everybody else is doing it,” he said.

CNBC’s Jim Cramer on Thursday said his “Magnificent Seven” mega-cap tech stocks stood out during earnings season, even though they took a hit as investors fretted over an unsettled bond market. But many of the stocks have since recovered from post-earnings declines, Cramer noted, perhaps leaving some sellers full of regret.

Cramer’s favored group of Big Tech names are Amazon, Apple, Nvidia, Microsoft, Meta, Alphabet and Tesla.

“Days like today remind you that you can’t panic and flee from the entire asset class just because everybody else is doing it. Even if you want out, which isn’t necessarily the right thing, you’ll probably get a better opportunity when the crowd is done hitting the pavement,” Cramer said. “And that’s especially true for the high-quality stocks that we call the Magnificent Seven.”

According to Cramer, Amazon and Meta saw declines even after reporting positive quarters due to concerns that held little weight, with their stocks already recovering from recent dips. Cramer dubbed investors’ reaction to Alphabet’s Google Cloud miss “extreme,” saying the stock is starting to come back. He conceded that Tesla’s earnings miss was tricky, but said many in the electric vehicle business also reported tough quarters, and consumers will continue to love the Tesla brand.

Microsoft reported an “almost perfect quarter,” Cramer said, but its stock still declined some because its peer mega caps “got put through the meat grinder.” And Apple reported Thursday after close, with its stock seeing a pullback in after-hours trading. Cramer said he thinks the company’s service stream is “the future of the business,” reaffirming his stance that investors should own Apple, not trade it.

“I think it’s safe to say that the sellers missed out on a real buying opportunity and, worse, they created that opportunity themselves,” Cramer said.

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple, Nvidia, Microsoft, Meta and Alphabet.



READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.