As you all know for years this muppet has been recommending big tech companies under various iterations of the FANG and MAGA acronyms.
However now that they’ve been under performing for a few months he’s turned remarkably bearish on the group. One of the reasons he’s bearish seems to be that he did some research recently and noticed that they don’t offer dividends. At first I thought maybe he just didn’t realise that big tech companies tend to return profits via buybacks, but he also commented on how he didn’t like that META brought back $40b in stock because they brought it at the wrong price so I guess you can’t win.
In addition to this he now also believes that US tech (inc. GOOG) is being disrupted by Chinese companies, that cloud is slowing and that data centres are too costly.
Jim Cramer often flip flops on his positions, but the conviction he’s showing here makes me suspect big tech might be nearing a bottom.