CNBC’s Jim Cramer said Thursday that investors may be trying to sell themselves some of the market’s biggest winners.
His comment is snowflake Shares soared about 36% on Thursday after the company reported strong financial results and highlighted its $6 billion commitment to Amazon Web Services. The “Mad Money” host argued that many investors likely didn’t understand the move very well.
Kramer cited three reasons for this.
First, he said, many investors have become too reliant on index funds and exchange-traded funds, preventing them from benefiting from large price movements in individual stocks.
“We’re all told we should only buy index funds and ETFs,” he says. “You don’t get Snowflake with that policy.” To be sure, Kramer isn’t against index funds. He has long recommended that investors invest their first $10,000 in a low-cost index fund that tracks the broader market before moving on to owning individual stocks.
Kramer also said that investors often ignore opportunities because they feel the investor’s case is “too obvious.” He argued that if one software company can find the right AI strategy, investors should ask if they can include other companies as well. sales force, oracle and microsoft — may benefit as well.
In closing, Kramer said many investors are still too scarred by the 2000 Internet stock crash to fully embrace today’s rise in AI.
“Those 14 and a half months scared us away from the most incredible opportunities with real companies that are building wealth,” he said.
Unlike many of the speculative Internet companies of the late 1990s, Kramer believes that today’s AI leaders are largely profitable companies, generating significant revenues and cash flow.
“All these memory and storage companies are just killing it,” he said, noting that: micron, seagate, sandisk and western digital.
Cramer said investors who are still waiting for the AI bull market to unwind may be missing out on one of the market’s biggest opportunities.
“This market is different, and we are further from the end of the AI data center boom than the bears would have you believe.” “That means we likely have more room to run.”
