CNBC’s Jim Cramer singled out six of the companies that have become known as the “Magnificent Seven” during his show on Wednesday.
“The seven great companies have the most options of any publicly traded company in modern history,” Cramer said. “To sell any of them is to forget that they have this kind of amazing power.
Tesla, Amazon, Meta, Apple, Microsoft, Alphabet, and Nvidia make up the Magnificent Seven stocks, which earned their name due to their strong business fundamentals and high performance during the recent tough market.
One way Cramer said you can see this kind of market power is by using Google. Google shares jumped as much as $5 at one point on Wednesday after news that artificial intelligence could be used to replace its large ad sales force.
The workforce transformation, according to Cramer, makes sense because of the declining cost and efficiency of AI, and Wall Street seems to agree. This got Cramer thinking about all the ways Google could reshape its company and create stock value.
Alphabet-owned Google isn’t the only Magnificent Seven capable of making this happen. Tesla, Amazon, Meta, Apple, and Microsoft all have plenty of choices across their business units. Nvidia doesn’t have the same choice, Cramer said, because it’s primarily a graphics card company.
“The other six companies are so vast and have so many divisions and so many moving parts that if they decided to split or cut a losing division or sell something exotic, they could raise their stock by $42 billion, or $50, or $60 billion in the blink of an eye,” Cramer said. : “eye”.
These six members can afford to create business units that people don’t like, and it’s up to them whether to spin them off or invest more in them, Cramer said. Their strength is that they have the flexibility to do either.
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