If you made money in the market in 2023, chances are you own at least one of the 7 Magnificent stocks.
Metaplatform Actions (GOAL) – Get a free reportAmazon (AMZN) – Get a free reportmicrosoft (MSFT) – Get a free reporttesla (TSLA) – Get a free reportNVIDIA (NVDA) – Get a free reportGoogle (GOOGLE) – Get a free report and apple (AAPL) – Get a free report Collectively, they have gained more than 70% this year, while the rest of the 493 stocks in the S&P 500 have added just 6%.
Related: Dan Ives predicts big things for Tesla, Apple and ESPN in 2024
So most sane investors will probably hold on to those money-making companies heading into the uncertain election year, but CNBC's Jim Cramer wants to give you yet another reason to own those stocks.
“The Magnificent Seven has the most optionality of any publicly traded company in modern history,” Cramer said on Mad Money this week. “To sell any of them is to forget that they have this kind of incredible power.”
What does Cramer mean by optionality?
Well, each of those companies can pivot in various ways and not lose strength in the process.
Google, for example, could have a big opportunity on its hands if it can figure out how to integrate artificial intelligence in a way that appeals to consumers. Metaplatforms could move away from their metaverse.
“The other six are so vast with so many divisions and so many moving parts that if they decided to split up or cut a losing division or sell something superfluous, they could push their stock up to $42 billion, $50, $60 billion in the blink of an eye. one eye,” Cramer told viewers.
Cramer isn't the only analyst optimistic about the Mag 7.
Wedbush Securities analyst Dan Ives believes Apple will surpass the $4 trillion market cap barrier in the new year and that Tesla will introduce a new sub-$30,000 vehicle that would solidify its hold on market share. of electric vehicles in the United States.
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