CNBC’s Jim Cramer said Monday that tech stocks remain the market’s best hunting ground for investors looking for big returns.
“Tech companies, especially big tech companies, have much more to offer than the rest of the market,” the “Mad Money” host said.
Investors shifted to sectors that typically benefit from higher energy prices as oil prices rose on Monday after President Donald Trump announced he would reopen the blockade against Iran in the Strait of Hormuz. Kramer argued that companies in these industries are unlikely to generate the long-term returns that technology companies can generate through new products, strategic initiatives, or shifts in investor narratives.
metais a typical example. The company said it was looking to monetize its AI infrastructure, contributing to last week’s stock price rally after Mr. Cramer repeatedly urged the Facebook and Instagram parent company to consider selling some of its artificial intelligence computing power. Cramer’s Charitable Trust, a portfolio managed by CNBC’s Investment Club, owns shares of Meta.
“Simply acknowledging what seems so obvious has led to an increase of almost 100 points this month,” he said.
Kramer contrasted the meta movement as follows: pepsicodespite management’s operational improvements, its latest earnings report disappointed investors. Following the news, PepsiCo’s stock price fell more than 3%.
“For a simple pen stroke, Meta will give you almost 100 points,” Cramer says. “PepsiCo is taking a tough hit due to the weak quarter.”
alphabet He argued, citing another example. Kramer said Google’s parent company could unlock significant shareholder value just by spinning off Waymo, while companies such as Slim Jim’s parent company could unlock significant shareholder value. conagra and pharmaceutical companies pfizer “We just don’t have that much control over our own destiny.”
For Kramer, that’s what continues to separate the technology from other markets. While other sectors often rely on incremental operational improvements, high-tech companies can create entirely new catalysts that can quickly change the way investors value their businesses, he said.
“After a month in which the meta did its thing and scored 100 points, technology certainly looks like more fertile ground to plow than any other sector,” he said.
