Tech earnings steer market next few months Jim Cramer

This week’s gains from big tech megacaps – that is Amazon, Alphabet, Apple, Microsoft And Meta That’s vital to the market’s performance over the next few months, CNBC’s Jim Cramer said Monday.

“We know that the direction of the market for the next few months will be determined by the results we get this week,” he said. “If you lose these companies, you can’t make sustainable progress. Nothing can make up for them. Yes, the risks are really that high.”

These stocks, along with their Magnificent Seven peers Nvidia And Tesla’saccounts for almost 35%. S&P 500Cramer said. He added that “they represent the best companies we have in this country and in the world because of their product diversity,” and said he could make a case for owning any of these companies regardless of their earnings this week.

Alphabet, which will report on Wednesday, reviewed what it expects from these giants, especially Microsoft and Meta. While all three of these companies are technology names, their business is spread across multiple areas, he noted.

Cramer noted that Google is particularly interested in the lucrative advertising business related to YouTube and its search arms. But he added that Google’s most important business for Wall Street is its cloud business, which has “fired up” recently. Cramer also talked about the company’s investment in nuclear energy and its quantum computing initiative.

Cramer suggested that Meta should share metrics like the number of daily users on its platforms and average revenue per capita. He also said he “wants to hear a jovial, tough Zuckerberg talking about his competitive advantage in AI and power, his strength in the advertising business, and cool updates on AI glasses.”

Cramer said Microsoft is in a “difficult situation” because it has “essentially become a corporate monopolist.” He said the company cares about growth in its Azure business and wants to hear positive comments from the company’s CFO, Amy Hood.

Amazon and Apple are due to report on Thursday, and Cramer said the most important aspect of the first quarter was the web services division. He added that he would like to hear that Amazon is working with Nvidia to develop new chips that could help AWS attract new customers, and that he hopes the company’s massive outage doesn’t cause too much damage.

Cramer said Apple cares about the acceptance of its new iPhone 17 and the stock could rise if sales accelerate in China and the United States. He also said he hopes other hyperscalers will want to pay Apple to be their default AI system; This is similar to the deal Apple currently has with Alphabet to make Google its preferred search engine.

“When you have stocks whose market capitalizations are larger than the GDP of some countries, you can’t ignore them,” Cramer said.

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Disclaimer CNBC Investment Club owns shares of Amazon, Apple, Nvidia, Meta and Microsoft.