If you've made money in the market in 2023, chances are you owned at least one of the Magnificent 7 stocks.
Shares of Meta Platforms (META) -), Amazon (AMZN) -), Microsoft (MSFT) -), Tesla (TSLA) -), Nvidia (NVDA) -), Google (GOOGL) -) and Apple (AAPL) -) have collectively 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 are probably going to hold on to those money-makers 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 have the most optionality of any publicly traded companies 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 a number of ways and not lose any of their steam in the process.
Google, for example, could have a huge opportunity on its hands if it can figure out how to integrate artificial intelligence in a way consumers will love. Meta Platforms could pivot away from its metaverse.
“The other six are so vast with so many divisions and so many moving parts that if they decided to split up or trim a losing division or sell something extraneous, they could propel their stocks up $42 billion, $50, $60 billion in the blink of an eye,” Cramer told viewers.
Cramer isn't the only analyst who's bullish on the Mag 7.
Wedbush Securities analyst Dan Ives sees Apple cracking the $4 trillion market cap barrier in the new year and for Tesla to introduce a new sub-$30k vehicle that would solidify its stranglehold on the U.S. EV market share.
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