Tesla, Amazon, Meta, Apple, Microsoft, Alphabet and Nvidia make up the “Magnificent Seven” stocks, which have earned their name due to their strong business fundamentals and high performance in recent tough markets.
You can see this kind of market power using Google, Cramer said. Google shares rose $5 at one point on Wednesday after news that artificial intelligence could be used to replace its large ad sales team.
According to Cramer, the falling cost and efficiency of AI makes sense in the world of work, and Wall Street seems to agree. That got Cramer thinking about how Google could transform his company and build stock value.
Alphabet-owned Google isn’t the only “Magnificent Seven” capable of doing this. Tesla, Amazon, Meta, Apple and Microsoft all have a lot of choice in their businesses. Nvidia doesn’t have the same choice, Cramer said, since it’s primarily a graphics card maker.
“The other six companies are so big and have so many divisions and so many moving parts that they could increase their stock to $42 billion, $50 billion or $60 billion if they decide to split up or paint or sell a loss-making division. Something exotic in the blink of an eye,” Kramer said. : “eyes”.
These six members have the potential to create business entities that people don’t like, and it’s up to them to spin them off or invest more in them, Cramer said. Their strength lies in having the flexibility to do both.
