In this article, we will look at the stocks Jim Cramer discussed alongside the tech market divide. The host of CNBC’s Mad Money said on Thursday that the real divide in the market right now is playing out between technology’s hardware winners and software laggards.
That’s the seventh straight up day for the S&P, which seems to reflect that the truce will hold, no more bombing, just acceptance by both sides. But somehow, the Gulf’s not the narrative of this market. Instead, the averages tell us an alternative tale, nothing to do with the war at all. They tell a story of an empire torn asunder, ripped to pieces by a handful of companies. I’m talking about the enterprise software empire that’s being toppled by hardware stocks and AI. This war in tech, more than the actual war in Iran, has captivated Wall Street.
READ ALSO: Jim Cramer’s 18 Stock Calls and the Impact of Iran War: Apple, Alphabet, and More and Jim Cramer’s 12 Stock Calls and the Impact of Bond Market.
Cramer went on to explain that even on a day when investors might normally zero in on the Strait of Hormuz, oil markets, or Beirut, trading activity showed that hardware names overwhelmed software across the board, including companies that are otherwise performing well. He added, “If you’re in the software camp, you’re being treated as if you’re ready for the embalmer. If you are in the hardware and AI camp, you’re headed for the pantheon of greatness.”
Here’s the bottom line: Maybe tomorrow we’ll return to the worldwide narrative, whether it’s war or peace in the Middle East. But for now, it’s just another day when hardware slew software like Cain slew Abel, and all I can do is say get used to it. You may think these stocks don’t deserve it, but as Clint explains to Gene in that unbelievable scene in Unforgiven, “Deserve’s got nothing to do with it.”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 9. We listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Jim Cramer Weighed In on the Tech Market Divide and 11 Stocks to Watch Now
11. Amazon.com, Inc. (NASDAQ:AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) is among the stocks Jim Cramer discussed alongside the tech market divide. Cramer discussed the stock in light of the CEO’s annual letter, as he stated:
The annual Amazon letter came out today, written by CEO Andy Jassy, and it reminds you of just how stupendous this company really is. I believe this must-read letter is why the stock rallied a quick 5.6% today… Now, I’ve been concerned that Amazon was spending too much on satellites and drones. This letter tells me that I am wrong… Same-day delivery is on the rise, which will help the grocery front. Again, I’ve been skeptical of grocery. I’ve watched the rise of Walmart’s delivery business, and I thought it was at the expense of Amazon…
The thing they reassured the most about this stock was their tremendous commitment to artificial intelligence. Jassy put my mind at ease in incredible fashion… All I can say is he wishes he had more compute. He wishes he could spend even more… The letter also says they developed their own chips, which are in high demand, scorching demand, I should say… Do I keep Amazon for the trust after reading the letter? Honestly, even though we have an extremely low cost basis and we own more than enough of the stock, it was such a, it sounded so good, I’m tempted to buy more on the next dip.
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.
10. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is among the stocks Jim Cramer discussed alongside the tech market divide. Toward the end of the lightning round, a caller sought Cramer’s thoughts on the company, and here’s what he had to say in response:
I think Regeneron, I think Leonard Schleifer’s doing an unbelievable job. I think the stock’s breaking out here, I really do. I mean, I looked at it for the Charitable Trust, that and Amgen, we bought another stock, but those are the two I really like.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) sells medicines for eye conditions, immune disorders, cancer, cardiovascular issues, infections, and rare diseases. A caller inquired about the stock during the March 2 episode, and Cramer replied:
Oh man, you know what? I should have pulled the trigger on Regeneron when I sat down with them at the JPMorgan conference. I realized that the Charitable Trust should have owned it. It would’ve a much better, really much better drug stock than the others that we have, with the exception of Eli Lilly.
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