US Markets
Monday, October 2nd, 2023 11:08 pm EDT
Key Points
- CNBC’s Jim Cramer identifies a group of mega-cap tech stocks, known as the “Magnificent Seven,” with strong cash reserves that can compete effectively against the bond market. This group includes Apple, Alphabet, Meta, Amazon, Microsoft, Nvidia, and Tesla.
CNBC’s Jim Cramer has identified a group of mega-cap tech stocks that he refers to as the “Magnificent Seven,” capable of withstanding the impact of rising bond yields. This select group includes Apple, Amazon, Meta, Alphabet, Nvidia, Tesla, and Microsoft.
Cramer emphasized that while skyrocketing bond yields have a negative effect on most of the market, these mega-cap tech giants are the exception. He highlighted their strong balance sheets and robust product demand as key factors that enable them to navigate the competitive bond market.
These companies are not struggling for capital; in fact, they are generating significant profits from their substantial cash reserves. Cramer noted that their cash management strategies, once seen as abstract, have now become lucrative, potentially offsetting losses caused by a strong dollar.
For instance, Nvidia stands out for its valuable graphics chips, making it a leader in the field of artificial intelligence. Microsoft, Alphabet, Meta, and Apple have been accumulating cash for years and are now reaping the rewards of their prudent financial management.
Cramer believes that these stocks are no longer plagued by concerns about inflation or long-term value. As the bond market stabilizes, he predicts that these companies will gain recognition for their financial stability and resilience.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/10/02/jim-cramer-lauds-his-magnificent-seven-tech-mega-caps-as-bonds-rise.html
