This article presents an overview of Jim Cramer Says “Hang On To Stocks” and Recommends 5 Stocks to Buy. For a detailed overview of such stocks, read our article, Jim Cramer Says “Hang On To Stocks” and Recommends 10 Stocks.
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5. Alphabet Inc Class C (NASDAQ:GOOG)
Number of Hedge Fund Investors: 166
Jim Cramer reminded investors his advice on Alphabet Inc Class C (NASDAQ:GOOG) where he said the stock should be bought on “any weakness.” Cramer said the latest dip in the stock price gave investors a chance to “pounce” as he praised Alphabet Inc Class C’s (NASDAQ:GOOG) various segments, including Google Cloud, YouTube, Search and AI
Palm Valley Capital Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its first quarter 2024 investor letter:
“Governments have various irons in the fire for curbing (commandeering?) the power of tech titans, with the European Union rolling out the Digital Markets Act, the Federal Trade Commission suing Amazon for illegally using monopoly power, and the DOJ lawsuit against Alphabet Inc. (NASDAQ:GOOG)’s advertising business going to trial in September.
Furthermore, the dominant technology enterprises are not immune from shooting themselves in the foot. Google’s botched launch of its AI model, Gemini, shows the risk of having too much money. You lose discipline. A Pirate Wires exposé into the firm’s culture revealed that employees went to extreme lengths to intentionally degrade the quality of the AI engine’s output for ideological reasons. Try that as a small business! See how far you make it…” (Click here to read the full text)
4. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 173
While Jim Cramer clearly seemed disappointed with NVIDIA Corp’s (NASDAQ:NVDA) performance, he reiterated his advice for investors to buy the stock for the long term.
“My view, of course, is to own it don’t trade it,” a not-so-excited Cramer said last week.
Cramer said these days NVIDIA Corp (NASDAQ:NVDA) seems to “rally far less than it goes down.” Cramer thinks part of the reason why the market doesn’t reward NVIDIA Corp (NASDAQ:NVDA) these days is its latest propensity to stay away from data center stocks.
Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its first quarter 2024 investor letter:
“This quarter we entered two new positions, while exiting four positions. Our first new position was NVIDIA Corporation (NASDAQ:NVDA), which we bought early in the quarter. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), which has recently benefited from the insatiable demand of artificial intelligence (AI) models. The company currently captures 92% market share of data center GPUs and grew revenue, earnings and FCF an astounding 126%, 392%, and 610%, respectively, over the last year. While much of the focus is on Nvidia’s market cap reaching $2.3T, up 230% over the last year, the company’s valuation has actually come down over that period. As of 3/31/23, consensus was valuing the company at 61x forward EPS. This compares to today, where the company is being valued at 37x. While yes, we have never seen a company expand their market cap by so much so quickly, we have also never seen a company grow their fundamental earnings and cash generation so quickly (and which is actually expanding faster than valuation). While competitors are working to enter the GPU space, Nvidia has created a moat around their GPUs with their CUDA software offering. While we do expect the large cloud players to continue to move into the market, we think NVDA can continue to demand top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of accelerated computing and artificial intelligence (AI).
Nvidia Corp. (NVDA) was a top performer in the quarter gaining 82.5% in the period. While the company has had an impressive run, gaining 242% over the last year, the valuation has been supported by the impressive growth in Revenue (126%), EPS (392%) and free cash flow (610%) over the last year. The company has solidified its position in the GPU space supported by its proprietary software CUDA. While we expect competition to increase, we think NVDA can continue to maintain top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of artificial intelligence (AI).”
3. Meta Platforms Inc (NASDAQ:META)
Number of Hedge Fund Investors: 242
Cramer has had some flip-flopping when it comes to Meta Platforms Inc (NASDAQ:META) but recently he’s been turning bullish on the stock. Earlier this year Cramer cautioned investors to ignore Meta Platforms Inc (NASDAQ:META) at your own risk. Last week, he said:
“When we get those pullbacks like we had the other day, yes, you wanna buy Google, you wanna buy Amazon, you wanna buy Meta, even.”
2. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 293
Jim Cramer loved Amazon.com Inc’s (NASDAQ:AMZN) latest quarter, which he called an “absolutely tremendous, lights-out” quarter. Cramer highlighted Amazon.com Inc’s (NASDAQ:AMZN) strengths in AWS, advertisement and international business.
“Amazon is at the top of the class when it comes to generative AI. It has so much going for it that it’s too long to list here,” Cramer said.
Jim Cramer advised investors to read Amazon.com Inc’s (NASDAQ:AMZN) earnings release:
“You will be blown away,” Cramer added.
Patient Capital Opportunity Equity Strategy stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its first quarter 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) was a top contributor in the first quarter gaining another 37.5%. Performance has been supported by strong top and bottom-line growth as the company maintains its leadership in the advertising space, despite Reels still being under monetized versus Newsfeed and Stories. The company continues to return cash to shareholders, increasing their buyback program by another $50B in February (6.4% of shares outstanding), and announcing their first dividend of $0.50 per share (0.39% yield). The company trades at 25x this year’s earnings, which we do not view as too demanding for a company with some of the best AI assets, an improving topline that should lead to free cash flow outperformance and continued capital return.”
1. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 302
Jim Cramer recently talked about Microsoft Corp (NASDAQ:MSFT) and shared his surprise on the stock’s underperformance after earnings.
“Have you seen this stock? This thing is getting killed.”
Cramer said there is “nothing better than Microsoft right now.” He said you’ve got to “check that box” as his Charitable Trust has by owning a stake in Microsoft Corp (NASDAQ:MSFT) that is leading the AI race.
Ithaka US Growth Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its first quarter 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) builds best-in-class platforms and provides services that help drive small business productivity, large business competitiveness, and public-sector efficiency. Microsoft’s products include operating systems, cross-device productivity applications, server applications, software development tools, video games, and business-solution applications. The company also designs, manufactures, and sells devices, including PCs, tablets, and gaming/entertainment consoles that all integrate with Azure, its cloud computing service. In the quarter Microsoft’s stock appreciated based on excitement surrounding the company’s positioning in the generative AI market and its ability to monetize the coming wave of corporate investment in supercomputing and AI, which will be through both Azure and Microsoft Copilot, the company’s new GenAI personal assistant.”
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