Jim Cramer says tech remains the market’s best place to find big winners despite recent struggles
Technology stocks remain the market’s top hunting ground for investors looking for big gains, CNBC’s Jim Cramer said Monday.
“Tech companies, especially big tech, are able to offer so much more than the rest of the market,” the “Mad Money” host said.
As oil prices rose on Monday after President Donald Trump announced that he would restart the blockade of Iran in the Strait of Hormuz, investors generally turned to sectors that benefit from high energy prices. Cramer argued that companies in these sectors are unlikely to produce the kind of long-term returns that technology companies can achieve through new products, strategic initiatives and shifting investor narratives.
MetaHe said this was a prime example. After Cramer repeatedly encouraged the parent company of Facebook and Instagram to consider selling some of its AI computing capacity, the company said it was considering monetizing its AI infrastructure, which helped its stock soar 15% last week. Cramer’s Charitable Trust portfolio, managed by CNBC’s Investment Club, owns Meta shares.
“A simple acknowledgment of something that seemed so obvious gave you almost a 100-point gain this month,” he said.
Cramer compared Meta’s move this way: PepsiCoDespite management’s operational improvements, its latest earnings report disappointed investors. Shares of PepsiCo fell more than 3% following the report.
“With a simple stroke of the pen, Meta gives you almost 100 points,” Cramer said. “PepsiCo took a serious hit due to a weak quarter.”
Alphabet He argued that he presented another example. Cramer said Google’s parent company could gain significant shareholder value by spinning off Waymo, while companies like Slim Jim would be spun off from the parent company. Konagra and drug producer Pfizer “They just don’t have that level of control over their own destiny.”
That’s what sets the technology apart from the rest of the market, according to Cramer. While other industries mostly depend on incremental operational improvements, he said: technology companies can create entirely new catalysts that will rapidly reshape the value investors place on their businesses.
“After a month in which Meta did the obvious and scored 100, tech certainly looks like much more fertile ground than any other sector,” he said.
