In this article, we will look at 5 Stocks on Jim Cramer’s Radar Like Microsoft, Apple and a Wave of Takeovers. Please visit our article 21 Stocks on Jim Cramer’s Radar Like NVIDIA, Tesla and a Wave of Takeovers, if you’d like to see the extended list and methodology behind it.
5. Alphabet Inc. (NASDAQ:GOOGL)
Alphabet Inc. (NASDAQ:GOOGL) was among the stocks on Jim Cramer’s Mad Money radar as he taught investors how to profit from the upcoming wave of takeovers. Cramer explained why the stock declined in the second quarter, as he commented:
Speaking of Google, parent company Alphabet was able to do a giant fundraise not long ago. That way, it can spend all at once on data centers again. Terrific news on one hand, but like Amazon, Meta, and Microsoft, that spending is a real blow to free cash flow and you get a paused buyback… Hence 6% decline. That said… [it’s] getting very little credit for YouTube, Google Cloud, or even search. It’s absurd, but it doesn’t matter. It doesn’t matter because of the seemingly profitless CapEx.
Alphabet Inc. (NASDAQ:GOOGL) provides technology-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms such as YouTube and Google Play. Cramer mentioned the company during the June 8 episode and said:
There’s the equity issuance from Google last week. Now I didn’t see it coming. You didn’t see it either. It was brilliant if you work at Google… You now have the money to build more… data centers to keep your cloud customers from going to another competitor. And that’s what they’re going to do. It’s bad for everyone else, though, especially shareholders of Meta, Amazon, and Microsoft. The ease with which Google raised the cash was incredible. Goldman Sachs did a tremendous job.
4. Apple Inc. (NASDAQ:AAPL)
Apple Inc. (NASDAQ:AAPL) was among the stocks on Jim Cramer’s Mad Money radar as he taught investors how to profit from the upcoming wave of takeovers. Cramer highlighted the effect of rising cost of components on the company’s stock, as he remarked:
Fourth, Apple was down over 7% in June thanks to the skyrocketing cost of components, especially memory chips. I think it’s vital that the US government allows Apple to buy low-end memory from China. Oh, and your phone is going up in price because the data center companies are bidding up the price for many of the chips that go into smartphones. But Apple has the best AI at a very cheap price thanks to its deal with Google… Higher prices mean lower sales. That’s what people think. We need to see the quarter and hear what they say in their forecast.
Apple Inc. (NASDAQ:AAPL) manufactures and sells devices such as the iPhone, Mac, iPad, along with its line-up of wearables and accessories. The devices are supported by the company’s app ecosystem, AppleCare, and cloud tools. Cramer addressed the selling in the stock during the June 10 episode. He commented:
Whatever you do, don’t take the selling in the stocks of Apple or NVIDIA personally. I bet most of that selling is from people who think they might get some SpaceX, so they need to be able to pay for it. These two stocks have become huge sources of funds for all the new deals. People feel better about taking gains than losses. For now, they’re simply donors to the SpaceX cause. Understand, I’m not speaking ill of either stock. The opposite, I’m in explain mode here. I love Apple and NVIDIA, own them, don’t trade them.
I’m simply saying that this is what happens in the run-up to a gigantic IPO. And you know, I’ve been telling you to beware of this oversupply problem for months now. Apple and NVIDIA are readily available for sale, and they’re too juicy for some of these sellers to pass up, even as a lot of the money raised by SpaceX or Anthropic or OpenAI will probably end up buying NVIDIA equipment. Meanwhile, Apple’s spending next to nothing on AI because they have a deal with Alphabet, and it’s a great deal. The same deal that makes Google your default search engine now extends to Gemini.
3. Meta Platforms, Inc. (NASDAQ:META)
Meta Platforms, Inc. (NASDAQ:META) was among the stocks on Jim Cramer’s Mad Money radar as he taught investors how to profit from the upcoming wave of takeovers. Cramer noted how people view the stock, as he said:
Third, Meta, down 11% this month. Meta is going out of style because it’s now viewed as nothing more than a pure advertising play… Again, false view, but right now, that does not matter. People do not want to own this stock. It is spending too much money, and we don’t know why. It hasn’t been explained well. What can Meta do? It has and is building a ton of data center power. I think Meta simply needs to say it’s going into the cloud computing Meta web services business. This can give you an instant 100-point gain, maybe more than that.
Meta Platforms, Inc. (NASDAQ:META) develops technologies and applications that connect people through social networking and messaging. The company’s portfolio includes Facebook, Instagram, WhatsApp, Messenger, Threads, and virtual and augmented reality products.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) was among the stocks on Jim Cramer’s Mad Money radar as he taught investors how to profit from the upcoming wave of takeovers. Cramer noted why the stock “could be punished,” as he commented:
Second worst performer, Amazon, off 12% from June. My Trust owns Microsoft; it owns this Amazon. This is a tough one because the company’s doing so much right, but they’re not getting credit for their advertising business or the Prime offerings. Wall Street only seems to care right now about Amazon Web Services, which is actually doing much better than expected, but it isn’t pleasing buyers.
Nobody seems to have any interest in what could be a potentially $50 billion semiconductor business that’s under the same roof. Investors are worried here. Yes, they are. They are worried. Why? Because they want free cash flow. Amazon used to have it. They need to start making money with AI next year, no matter what, or else. Because otherwise you can’t justify the extreme capital expenditures. We need to see a bountiful return, or the declines will continue, and the stock could be punished.
Amazon.com, Inc. (NASDAQ:AMZN) sells consumer goods and digital content through online and physical stores, provides advertising and subscription services, operates Amazon Web Services for cloud computing, develops electronic devices, produces media content, and offers programs supporting third-party sellers and content creators.
1. Microsoft Corporation (NASDAQ:MSFT)
Microsoft Corporation (NASDAQ:MSFT) was among the stocks on Jim Cramer’s Mad Money radar as he taught investors how to profit from the upcoming wave of takeovers. Cramer highlighted the company stock’s decline during the second quarter, as he stated:
We need to go over what the heck happened to these losing stocks in the month of June, then we’ll review all the winners for the quarter. Some of these Mag Seven declines, they are just hideous. The stock of Microsoft, for example, shed over 17% of its value this month, losing over a half a trillion dollars in market cap. Even though it has a decent cloud business, that’s not enough to make up for its core software exposure. Wall Street has no use for the software right now. Put aside this false narrative. Software’s a real good business.
If Microsoft wants to reverse its fortunes, it needs to do something bold like acquiring OpenAI if that company can’t come public because of its severe losses. Microsoft has a stake in the company. It can make the trade happen. That would allow it to scrap Copilot and replace it with uber popular ChatGPT. Or it can break itself up into extremely lucrative parts. Yes, Azure, the cloud computing business, Microsoft business-to-business software, Microsoft’s consumer software, Microsoft cybersecurity, video games, LinkedIn, all best in field. Listen, after a 17% loss in a month, these guys would be crazy to keep doing what they’ve been doing.
Microsoft Corporation (NASDAQ:MSFT) develops software, hardware, and cloud-based solutions. The company provides products like Windows, Azure, Office, LinkedIn, and Xbox.
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.
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