Jim Cramer reveals the secret to finding a winning tech stock in this market
Jim Cramer says the criteria for winning tech stocks have changed, with market gains now favoring companies facing supply shortages rather than those simply beating earnings. Despite strong results from mega-cap tech firms like Meta and Microsoft, mixed after-hours reactions show investors are prioritizing scarcity over scale. Companies like Seagate, Bloom Energy, and NXP Semiconductors saw gains due to constrained supply and rising demand in areas tied to data centers and automotive technology.
Opening excerpt (first ~120 words) tap to expand
CNBC's Jim Cramer said the bar for technology stocks has shifted and simply beating earnings is no longer enough to sustain a rally."When it comes to tech companies, it's not enough just to beat and raise anymore," said the "Mad Money" host. "You need a shortage, or else your stock's not gonna get much love, even if you are one of the big dogs ... that reported after the close this evening."On Wednesday, four mega-cap tech companies — Alphabet, Amazon, Meta, and Microsoft — reported results, with two of the four declining in after-hours trading. Cramer said the mixed reaction highlights a market that is increasingly rewarding scarcity over scale. "It's odd," he said. "There was a time when all four of these companies would have unstoppable growth.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
Discussion
0 commentsMore from CNBC — Top
