Skip links

Cramer warns investors not to repeat this year’s mistakes in tech stocks.

On Friday, a CNBC host warned investors against investing in mega-cap tech stocks that have been hammered this year. “If we see these stocks creeping back up to their old levels. … Let’s remember that prices do matter, and we don’t want to get burned the next time they go too high,” he said. “Right now, we want cheap stocks of companies that make things or do stuff at a profit and return some of those profits to shareholders.” The stock market rose on Friday but is still down for the week as investors remain concerned about the possibility of a recession. The technical stocks market has been battered this year as a result of persistent inflation, the Federal Reserve’s interest rate hikes, and Covid’s shutdown in China. Before this year, mega-cap tech names soared to stratospheric heights and were largely responsible for the market’s strength.

According to Cramer, Tesla, Meta Platforms, Nvidia, Amazon, Alphabet, Microsoft, and Apple — all major stocks in the S&P 500 — lost a combined $5.4 trillion in value. He said that while he doesn’t blame investors for betting on those stocks this year, he does believe that investors need to learn from their mistakes in 2023. “They’ll be able to bounce the next time we get a nice rally in the broader index, and I think we’re going to have one. I think you should use that chance to pare back on mega-cap tech,” he said. “I bet you’ll get a chance to buy them a little lower.”

Skip to content