Our market is polarized, especially in the technology sector. This was the main theme of his April meeting of the club. (Replay video will be posted soon.) There are companies that everyone loves, there are companies that everyone is wary of, and there are companies that everyone hates. Let’s start with your beloved. I’m talking about MetaPlatform, which releases its earnings Wednesday evening, and Alphabet and Microsoft, which release late Thursday. Next week is Amazon. META YTD Mountain Meta Platforms YTD Meta has the biggest tailwind on the planet hanging in front of it. Chinese company ByteDance must sell his TikTok or face a U.S. ban on the short-form video platform, according to a newly signed law. This is a complete windfall, as Reels has become the de facto place for short, funny videos. Instagram is becoming an increasingly important destination for consumer packaged goods companies. Still, there’s nothing in the Metaverse. But I hope you can at least understand the value of WhatsApp. CEO Mark Zuckerberg is making quite an effort considering the number of Nvidia chips he has purchased so far. I like it here, but I don’t want to play metal roulette and tell you to buy before the earnings are announced after Wednesday’s closing bell. GOOGL YTD Mountain Alphabet YTD Thursday evening brings Alphabet, the once-hated, now-loved parent company of Google. I admit that the company has to do a few things to justify this exit from the doghouse. First, we expect Google Cloud to have $10 billion in revenue. Next, expect YouTube and Waymo to break out. Third, I want dividends. Last quarter, Meta was the last of our Super 6 stocks to declare a dividend. Without these, I fear we would end up in some kind of feedback loop. Just like in the past, this time it’s a showdown between search and Google’s AI Gemini, and I don’t want to go down the rabbit hole, which is why I’m doing it. I’m glad I was able to sell my Alphabet stock this year. MSFT YTD Mountain Microsoft YTD Microsoft is so beloved that unless it can say reassuring things about AI and demonstrate continued benefits in the Azure cloud, it may be the company that Wall Street targets. Microsoft could do that when it reports after the bell on Thursday. We’d also like to hear more about the AI button coming to new PCs starting in July, keeping in mind that this version of the Co-Pilot AI assistant strategy isn’t part of a company-to-business initiative. . Can Microsoft keep going? I don’t know what’s stopping it. AMZN YTD Mountain Amazon YTD Amazon also belongs to the popular category, which will be reported next Tuesday. CEO Andy Jassy tells a calm and powerful story about Amazon, his web service cloud, his growing ad business, and some things about Prime. It’s unclear whether Google will mine the Anthropic business, which houses Claude AI, as it also owns a large stake. But I believe Amazon will try to do something with Alexa and artificial intelligence. Even if it’s just to justify the pitfalls of money in the past. Amazon’s business model is a great fit for what I call the new frugality: people’s desire to travel but want everything cheap. The next category is fence sitters. That’s Nvidia, Broadcom, and Salesforce. NVDA YTD Mountain Nvidia YTD I don’t know how Nvidia became a fence sitter. I think it’s because everyone is said to be making up his Nvidia competitors, which is simply not true. Chips made by other companies are no match for Nvidia’s chips. Go to the symposium in Oregon where CEO Jensen Huang spoke. Just before the end, he discussed why we are in the middle of an industrial revolution and everything we know about computing is about to change. Only Nvidia can change it. The company monopolizes almost the entire market. Everything I make before I make it will be sold out. A new supercomputer powered by Nvidia’s Blackwell will be able to create lifelike robots that can do anything humans can do, and be trained by movies. It’s not a joke. This is going to be a revolutionary machine that can do so many things that we can do. Despite this, people are acting as if current chips have already been beaten by the meta and Amazon trends. Oh please. Go watch the video. Nvidia will release its earnings late next month. AVGO YTD Mountain Broadcom YTD Broadcom is ambiguous. They still haven’t reaped the benefits of the VMWare acquisition and are still stuck in an incredibly stubborn and downright awful cell phone cycle. I don’t know if CEO Hock Tan can reiterate that there’s no need to worry as his turn will come soon, but until then he should enjoy his AI partnership with Nvidia. That’s the message from last quarter, announced in March. But he’s going to try it. He has to do something to justify his VMWare so it can be justified and provide a better story until the AI hill gets so big that it overwhelms everything else. Of course, that’s why we like it. Broadcom won’t report earnings again until June. CRM YTD Mountain Salesforce YTD Salesforce has become very complex. I believe the company is doing incredibly well and doing a good job with generative artificial intelligence products for customers, but I don’t like it when a company that we own suddenly starts talking about a merger. I think it’s a bit off-the-wall, like an acquisition. A so-so property called Informatica. Here I’m thinking about what happened a few years ago when a struggling PayPal started talking about acquiring Pinterest. At the time, we owned stock in PayPal, a loss-making business that, for the record, was only just starting to take off. Earlier this week, there were media reports that Salesforce was withdrawing from negotiations with Informatica. I’d like to believe that the Informatica thing was a temporary lack of discipline and that Salesforce CEO Marc Benioff has enough of a suite to grow the company another 10% or more. But we do know that Salesforce is currently in the penalty box. A stock that everyone seems to hate. That’s Apple now. AAPL YTD Mountain Apple YTD What can we say about Apple other than what has been said so far? Apple is not a growth stock held hostage by China, which means they can’t come up with anything to replace the iPhone. The cord is cut and there is nothing left. But here’s my problem with the now-fashionable analysis. There are only a handful of stocks in the entire S&P 500 that are flat or down this year, and I keep their price-earnings ratios in his low single digits. That would mean Apple’s stock price would be around $135 per share. As I said in a comment earlier this week, that’s not going to happen. I arbitrarily chose $160 as my battlefield level. It seems like years ago. It’s been going on forever. I won’t try to sell it and buy it back. We are not a hedge fund. But let me just say this: If Apple has something, and the next iPhone, which is scheduled to be released in September, has something to do with AI, it should go back to selling it now. It will disappear. (Jim Cramer’s Charitable Trust is long META, GOOGL, MSFT, AMZN, NVDA, AVGO, CRM, and AAPL. See here for a complete list of stocks.) Subscribe to Jim Cramer’s CNBC Investing Club As a member, you can receive the following benefits: A trade alert will be displayed before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in a charitable trust’s portfolio. If Jim talks about a stock on his CNBC TV, he will wait 72 hours before executing the trade after issuing a trade alert. The above investment club information is subject to our Terms of Use and Privacy Policy, as well as our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
A man takes a selfie in front of the Meta sign, the new name for the company formerly known as Facebook, at its headquarters in Menlo Park, California, USA, on October 28, 2021.
Carlos Barriareuter
Our market is polarized, especially in the technology sector.
This was the main theme of the club’s April meeting. (Replay video will be posted soon.) There are companies that everyone loves, there are companies that everyone is wary of, and there are companies that everyone hates.
