Tech Stocks Roundup: Jim Cramer on Microsoft, Okta, Nvidia
Jim Cramer told viewers of his "Mad Money" program Monday that he likes tech stocks so much because they're always innovating.
Aside from innovation, he attributes smart thinking and good timing as other reasons why he loves tech stocks so much.
This past week, Wedbush said Apple (AAPL) - Get Report, Microsoft (MSFT) - Get Report, and Nuance (NUAN) - Get Report are the top three tech companies to watch as the first-quarter earnings season begins.
For more in-depth coverage of the technology sector including trading recommendations and investment strategies, follow the experts on Real Money.
Here is a list of the technology stocks to watch and their performance by percentage change over the past five days through the close of trading on Tuesday, Apr. 13:
Microsoft | +4.22% 5-Day
Microsoft (MSFT) - Get Report on Monday agreed to acquire speech-recognition firm Nuance Communications (NUAN) - Get Report for $16 billion, or $56 a share. The deal is Microsoft's second-largest acquisition since its $27 billion purchase of LinkedIn in 2016.
CEO Satya Nadella said Microsoft and Nuance will be helping doctors speed through paperwork to improve patient care.
Cramer commented on the deal saying it's "extraordinary."
Shares of Microsoft, which trade for 35 times earnings, suddenly seem a whole lot cheaper, Cramer said, thanks to smart thinking and impeccable timing.
The Nuance deal is expected to close before the end of the year.
TheStreet Quant Ratings rates Microsoft as a Buy with a rating score of A.
Nvidia | +12.79% 5-Day
There are two ways to excel in tech, Cramer explained Monday on "Mad Money." One way is to innovate, something Jensen Huang, CEO at Nvidia (NVDA) - Get Report is known for.
The company updated analysts with not only new products but also with a pre-announcement of better-than-expected earnings. Cramer said Nvidia isn't only challenging the likes of Intel (INTC) - Get Report and Advanced Micro Devices (AMD) - Get Report, it's become the most valuable semiconductor company of our day.
Nvidia remains a value play, even after Monday's 5.6% run in the stock. Shares of Nvidia traded slightly higher early Tuesday after Deutsche Bank raised its price target on the stock to $575 from $560.
TheStreet Quant Ratings rates Nvidia as a Buy with a rating score of B.
Shopify | +7.43% 5-Day
Shopify (SHOP) - Get Report has noted that the pandemic has accelerated the secular shift toward e-commerce and away from legacy software platforms. Shopify's total addressable market for small businesses is estimated at $153 billion.
"This is a chance to buy this company well off its high. You want to own it," Cramer said of Shopify during a "Mad Money Lightning Round" this past week.
TheStreet Quant Ratings rates Shopify as a Hold with a rating score of C.
PayPal | +8.99% 5-Day
PayPal (PYPL) - Get Report is among a select few companies that are currently adopting cryptocurrencies. "I think Paypal is a place to focus on bitcoin," Cramer said this past week.
In the past two months, the cryptocurrency market has doubled and has now risen to $2 trillion. Bitcoin, of course, makes up about half of that -- with a $1 trillion valuation per GoinGecko.
PayPal and the San Jose Earthquakes announced a multi-year sponsorship agreement this past week, which includes naming rights for the Major League Soccer (MLS) team's stadium located in San Jose, California. The stadium will be called PayPal Park.
TheStreet Quant Ratings rates PayPal as a Buy with a rating score of B.
Square | +15.78% 5-Day
Digital payments company Square (SQ) - Get Report has declared a commitment to Bitcoin.
"I have always said that I think Square is terrific because it's willing to give you a piece of bitcoin. But my limited purview is the companies that are giving you the opportunity, and I favor them over those that aren't," Cramer said of the company this past week.
TheStreet Quant Ratings rates Square as a Hold with a rating score of C.
Okta | +16.83% 5-Day
Shares of Okta (OKTA) - Get Report rose this past week after the maker of identity-management software reiterated its guidance for the year and introduced two new products that could expand its addressable market.
The surge was also attributed to Okta's projected sales growth of 30% over the next three years, fueled by the shift to remote work.
The company expects revenue at the end of fiscal 2024 will be close to an annualized $2 billion, or about $500 million for the fourth quarter, Chief Executive Todd McKinnon said in an interview with Bloomberg News.
Cramer said Okta is the premier identity company that can stop cyber threats. "If you know who somebody is and Okta is the only company that everybody trusts to be able to do that, then you can stop a cyberattack. Now they're going after CyberArk Software (CYBR) - Get Report and SailPoint Technologies (SAIL) - Get Report, companies that work with privileged accounts and enterprise identity governance. I would sell both these stocks because Okta is coming after them."
Cramer urged investors to take a long position on Okta.
TheStreet Quant Ratings rates Okta as a Sell with a rating score of D+.
Salesforce | +4.99%
Salesforce.com (CRM) - Get Report is planning to reopen its San Francisco headquarters in May along with its offices in Palo Alto and Irvine, Calif., according to a post on the software giant's website Monday.
At first, office attendance will not be compulsory, with employees having the option to work from home at least through year's end.
TheStreet Quant Ratings rates Salesforce as a Hold with a rating score of C+.
Salesforce and Microsoft are holdings in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells these stocks? Learn more now.
