Jim Cramer says these 10 tech and software stocks can make a comeback

Jim Cramer says these 10 tech and software stocks can make a comeback


Cramer explains how the Federal Reserve's interest rate hikes hammered Big Tech stocks

CNBC’s Jim Cramer on Tuesday named hammered tech stocks that he believes can make a comeback after the Federal Reserve finishes tightening the economy.

Here is his list: 

  1. Amazon
  2. Microsoft
  3. Alphabet
  4. Tesla
  5. Netflix
  6. Apple
  7. Salesforce
  8. ServiceNow
  9. Adobe
  10. Workday

“Nearly all of these, save Apple, are variations on the same story — stocks that were cut in half when their businesses had no such comedowns,” he said, adding, “Their stocks just got way ahead of themselves before the Fed took away that easy money.”

Tech stocks plummeted this year after climbing to stratospheric levels during the height of the pandemic. Persistent inflation, the Fed’s rate hikes, Covid-19 lockdowns in China and Russia’s invasion of Ukraine drove investors out of risky tech stocks and into safer bets.

At the same time, fears about an impending recession have led investors to prioritize profitability in a company over growth. Once-prosperous tech companies have cut thousands of jobs across the industry in an effort to cut costs.

Cramer explained that focus on the dot-com collapse belies the stocks that may survive this period of economic downturn. “Back then, it was the best of breed that eventually managed to rebound — the rest of them just never came back,” he said.

Cramer also predicted that there are many pandemic plays that likely won’t recover from this year’s challenges.

“Once the Fed relents, I’d much rather be in Big Tech, or the top cloud plays, or the better-run chipmakers like AMD and Nvidia,” he said.

Disclaimer: Cramer’s Charitable Trust owns shares of AMD, Amazon, Apple, Microsoft, Nvidia and Salesforce.

Jim Cramer says these 10 tech and software stocks can make a comeback

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.



Source

NASA plans to stream rocket launches on Netflix starting this summer
Business

NASA plans to stream rocket launches on Netflix starting this summer

Workers repaint the NASA logo on the Vehicle Assembly Building at the Kennedy Space Center on May 28, 2020 in Cape Canaveral, Florida. Joe Raedle | Getty Images NASA’s live programming, including rocket launches, spacewalks and views of Earth from space, will begin streaming on Netflix this summer. NASA said the move is part of […]

Read More
Home Depot is buying GMS for about .3 billion as retailer chases more home pros
Business

Home Depot is buying GMS for about $4.3 billion as retailer chases more home pros

A Home Depot store in San Carlos, California, US, on Monday, Nov. 11, 2024. David Paul Morris | Bloomberg | Getty Images Home Depot said Monday that it is buying GMS, a building products distributor, for about $4.3 billion as the retailer moves to draw more sales from contractors and other home professionals. Shares of […]

Read More
WNBA announces three new teams in Cleveland, Detroit and Philadelphia
Business

WNBA announces three new teams in Cleveland, Detroit and Philadelphia

Napheesa Collier, #24 of the Minnesota Lynx, scores the game-winning basket during the game against the New York Liberty in Game 1 of the 2024 WNBA Finals at Barclays Center in Brooklyn, New York, on Oct. 10, 2024. Nathaniel S. Butler | National Basketball Association | Getty Images The WNBA announced on Monday it has […]

Read More