Jim Cramer examines ‘stalled’ stocks Apple, Meta and Tesla

CNBC’s Jim Cramer explains why he thinks tech stocks are soaring Thursday Apple, Meta And Tesla’s has recently “stalled” and all three are up about 10% for the year.

Cramer said that after the Fed made its third consecutive interest rate cut this week, major hedge funds and money managers bought stocks known to benefit from low interest rates. He suggested that they currently prefer companies such as home builders, retailers, banks, industrial companies or transportation rather than technology giants.

Cramer emphasized: Dow Jones Industrial Average And S&P 500 Technology-heavy business closing at record levels Nasdaq Composite He finished Thursday in red.

“Hedge funds are like pack animals,” he said. “When they act simultaneously, as they do today, it becomes too costly to go against them and buy too much technology.”

Apple is not a clear beneficiary of interest rate cuts, Cramer said. He added that some investors have criticized the company for not spending on AI compared to its megacap peers. He suggested that Meta’s success wasn’t necessarily about odds. He said the stock was “unlisted because it became a one-day story the day it was reported.”

Cramer said Tesla is transitioning from a car company to a technology company as interest rate cuts help its automotive business. He added that Tesla shares, which are now focused on robots, autonomous driving and energy storage, are not traded as if they were part of the auto industry.

“I wish there was more to it than that. I wish I could tell you that something good happens to winners or something bad happens to losers,” he said. “The bottom line? After all, you’re just looking at fund flows.”

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Disclaimer CNBC Investing Club Charitable Trust owns shares of Apple and Meta.