In this article, we will look at Jim Cramer’s stock calls on Mad Money recently as he recapped mega-cap tech earnings. The host of CNBC’s Mad Money said on Wednesday that the strongest in technology right now are, somewhat ironically, the “old tech.”
When it comes to tech companies, you know what? It’s become not enough just to beat and raise anymore. You need to have something else going on, something that’s not in your control. You need a shortage or else your stock’s not going to get much love, even if you’re one of those big dogs, yeah, the hyperscalers we talk about, the ones that reported after the close this very evening.
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Cramer added that it is a strange turn compared to the past, when companies like Amazon, Alphabet, Microsoft, and Meta would have been seen as unstoppable growth engines. He said that now growth is increasingly tied to businesses operating in areas where supply is limited. He mentioned that artificial intelligence does not fall into that category because it is widely available and rapidly expanding rather than constrained.
The bottom line is simple: The best tech these days is ironically old tech because we stopped building old tech, and it came back into vogue because it turns out that artificial intelligence needs some old tech, too. Now, the big guys can’t build enough. And with the exception of Google and Amazon, there’s not much else to say.
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 29. 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’s 20 Stock Calls: Microsoft, SoFi, and Tech Earnings Recap
20. Starbucks Corporation (NASDAQ:SBUX)
Starbucks Corporation (NASDAQ:SBUX) was among Jim Cramer’s stock calls on Mad Money recently as he recapped mega-cap tech earnings. Cramer called the company’s latest quarter a “home run,” as he commented:
Last night, the once bedraggled Starbucks reported and beat the numbers and raised the forecast. The quarter was a home run. But the analysts were surprisingly muted, talking about disappointing margins and a guidance boost that seems too small given the dramatic increase in same-store sales. I think they got it all wrong, and the market clearly agrees with me, which is why Starbucks shot up more than 8% today. That’s a massive gain…
Brian knows that in order to pull off this kind of turn, you’re going to have to initially hurt your gross margins. He took them down to 10%, but they should bounce back to 13% soon. He told me this morning when I spoke to him on Squawk on the Street. And when they do, the naysayers will be forced to upgrade… Once Brian gets these margins in the right place, which he will, this stock will become cheap, cheap, cheap… Has Starbucks, the stock gone up too far, too fast? Oh, maybe for today, but Niccol’s a long may she reign character, and that’s exactly what I think will happen with the stock of Starbucks.
Starbucks Corporation (NASDAQ:SBUX) sells coffee, tea, and other beverages, as well as food products, through its stores and licensed outlets. The company’s brands include Starbucks Coffee, Teavana, Ethos, and Starbucks Reserve.
19. Fermi Inc. (NASDAQ:FRMI)
Fermi Inc. (NASDAQ:FRMI) was among Jim Cramer’s stock calls on Mad Money recently as he recapped mega-cap tech earnings. Toward the end of the lightning round, when a caller asked about the stock, Cramer said:
Now that is one that I can’t bless at all. That seems not even like a science project; it’s more like a kind of science drive-by. I don’t want you in that stock.
Fermi Inc. (NASDAQ:FRMI) is developing large-scale next-generation electric grids designed to power advanced artificial intelligence. The company’s planned campus will integrate nuclear, natural gas, solar, battery storage, and utility power to deliver highly redundant gigawatt-scale energy. During the March 6 episode, a caller asked whether the company’s stock was a buy, sell, or hold, and Cramer replied:
This is really hard. It’s a really speculative stock, and so I’m just going to be really blunt, and I’m going to tell you I want you to sell it… Just sell it, okay? I just don’t like it, and I always feel so, I know that sounds very harsh, but I think it’s a loser. Was a loser from the day it came public, even as I like the people who are involved. Ouch.
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