CNBC’s Jim Cramer counseled investors to take profits on their Big Tech investments, notwithstanding the difficulty of relinquishing shares that are performing well.
What Happened: Cramer, who recently scaled back some Big Tech investments in the CNBC Investing Club’s Charitable Trust, underscored the significance of profit-taking. He conceded that letting go of the shares of companies that form part of the “Magnificent Seven,” a collection of consistent innovators and robust long-term performers, is challenging, CNBC reported on Wednesday.
“When you sell or even just trim any of the seven, something always seems to come up that makes you regret doing so. The good news? Right now, it looks like you’ll get a chance to buy these stocks lower because the stock market’s getting nasty. No one ever got hurt taking a profit,” Cramer stated.
He pointed out that Amazon.com Inc AMZN possesses enormous potential with its Prime Video service, with respect to both subscription and advertising revenue. He further spotlighted Tesla Inc TSLA, noting the company’s promising future beyond just electric vehicle manufacturing, including potential revenue sources such as financial services, network services, and ride-sharing.
“These darned companies are so good, they always seem to come up with something that makes them more compelling than we thought,” Cramer remarked.
“That’s the definition of a good investment, as long as you do some trimming after a big gain.”
Why It Matters: Cramer’s recent advice echoes his previous comments on certain stocks. In December, he cautioned investors that Camtek Ltd. was “too expensive” and recommended waiting for a pullback.
He also advised investors to wait for a pullback in Cloudflare, Inc., as it had surged approximately 87% year-to-date. Cramer’s cautious stance on high-performing tech stocks is consistent with his recent advice on profit-taking in Big Tech, underlining his belief in prudent investing amid market volatility.
Read Next: Ex-WH Lawyer Says SCOTUS Is ‘Swiftly’ Going To ‘Knock Down’ Trump’s Immunity Claim
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
