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Jim Cramer said that he has never seen any stock performance like Microsoft, Tesla, and Amazon stocks have these days.
Popular stock market analyst and founder of TheStreet Jim Cramer said he is truly amazed by the bull rally experienced in the top U.S. tech companies’ stocks including Microsoft Corporation (NASDAQ: MSFT), Tesla Inc (NASDAQ: TSLA), and Amazon.com Inc (NASDAQ: AMZN).
“Moves, like we are seeing in Microsoft and Tesla and Amazon, are truly insane and unlike any, I have ever seen in my life,” he wrote.
Their price has been rising despite the harsh impact of the ongoing coronavirus pandemic. Notably, they are scaling higher by the day to reach a new ATH. Being tech companies, their businesses heavily rely on cloud computing in addition to automated processes and less affected supply chain.
Breaking them down to each stock, they all have the strong niches that make them tick and favorable by investors and also by most Wall Street analysts.
Closer Look at Jim Cramer Stocks Preference
First, on Amazon stock, its rise can be seen to be bolstered by the social distancing efforts which largely favor its e-commerce business. Since the coronavirus wake at the beginning of the year, Amazon sales have experienced a sharp uptick all over NorthAmerica.
As the number of reported coronavirus cases increases by the day and a vaccine remains months away, its business will continue thriving and so will its share value.
As of Monday evening, Amazon shares had added around $234 in value to close the day at $3,196.84. Remarkably the shares continued rising in the pre-market to trade around $3,242.
“Amazon stands as a primary beneficiary of the shift in consumer shopping behavior stemming from the pandemic. The slower than previously expected re-opening of the economy is positive for Amazon’s competitive positioning versus traditional retail and increases the likelihood recent changes in consumer behavior are permanent,” said Scott Devitt, an analyst with Stifel.
According to Devitt, Amazon is expected to report 2Q20 revenue of $80.9 billion, a year-over-year increase of 28%, which is in line with the high end of Amazon’s guidance ($75.0 billion -$81.0 billion) and also reflects investors expectations.
On the other hand, Tesla Inc. shares, which have surpassed most expectations by now, has been significantly attributed to increased demand for its products across Asia, North America and Europe.
The American EV company has seen its shares add around 300% YTD. As of yesterday, Tesla shares closed the market trading at $1643 after adding 9.47% and they are 2.65% up in the pre-market.
Microsoft shares have seen a tremendous increase as more people working remotely opt to use the company’s products. As of yesterday, the shares closed the day trading at $211.60 reciprocating to a rise of 4.30%. The shares are 1.29% up in the pre-market to trade around $214.34.