Jim Cramer Cut Tesla From The 'Magnificent 7': Here's His New Name For The Basket Of Mega-Cap Tech Stocks
Portfolio Pulse from Adam Eckert
Jim Cramer has suggested removing Tesla Inc (TSLA) from the 'Magnificent Seven', a group of mega-cap tech stocks, renaming it the 'Super Six'. This comes as Tesla shares have dropped approximately 16% in 2024 and are in a downtrend since late 2021. Morgan Stanley analyst Adam Jonas cut Tesla's earnings, margins, and free cash flow estimates ahead of its quarterly results. Tesla's operating margins have also decreased significantly year-over-year. Investors are awaiting Tesla's earnings report, with expectations of 74 cents per share on $25.547 billion in revenue.

January 22, 2024 | 8:05 pm
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POSITIVE IMPACT
Apple remains part of the 'Super Six' mega-cap tech stocks, indicating continued strong performance and investor confidence.
Being part of the 'Super Six' suggests that Apple is still seen as a strong performer, which could positively influence its stock price in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Amazon's status in the 'Super Six' underscores its dominance in the tech sector, which could continue to support its stock price.
Amazon's inclusion in the 'Super Six' reflects its strong market position, which could have a positive effect on its stock price in the near term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Alphabet's continued presence in the 'Super Six' suggests stable performance and could maintain its positive stock price trajectory.
Alphabet's position in the 'Super Six' indicates it is still favored by investors, which may help its stock price in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Meta Platforms' place in the 'Super Six' indicates confidence in its market position, potentially benefiting its stock price.
Meta's inclusion in the 'Super Six' suggests a positive outlook from investors, which could positively impact its stock price short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Microsoft's inclusion in the 'Super Six' reflects its strong performance, particularly with the AI boom, which may continue to positively impact its stock price.
Microsoft's strong performance, especially in AI, keeps it in the 'Super Six', likely maintaining or boosting investor confidence and its stock price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
NVIDIA's membership in the 'Super Six' reflects its strong standing in the tech industry, which may continue to drive its stock price upward.
NVIDIA's ongoing presence in the 'Super Six' indicates robust performance, which could have a favorable impact on its stock price in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Tesla's exclusion from Cramer's 'Magnificent Seven' and lowered estimates by Morgan Stanley could negatively impact investor sentiment and TSLA's stock price in the short term.
Jim Cramer's influence and the negative outlook from Morgan Stanley could lead to bearish investor sentiment, potentially causing a short-term decline in Tesla's stock price.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100