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Jim Cramer: The market's year of magical thinking is paying off
CNBC Television· 2025-06-12 00:31
It's all coming together for the most speculative stocks in the market and it's a dream come true for many uh dreamer. While the average has drifted lower, Dow dipping 1 point S&P declining 27%. NASDAQ losing.5%.We should have been stronger in the banks and text today. The real action is in the stocks of companies that make no money whatsoever and many have close to no revenues. But it doesn't matter here because they're the right stocks at the right moment for this market.You know what I got to do. I got t ...
Jim Cramer explains the market's 'year of magical thinking'
CNBC Television· 2025-06-12 00:10
Market Trends & Investment Opportunities - The market is experiencing a "year of magical thinking" where speculative stocks in space, quantum computing, and nuclear energy are thriving, despite many companies having little to no revenue [1] - Quantum computing is reaching an inflection point, driven by Nvidia's CEO Jensen Wong's revised timeline, leading to investment shifts from traditional stocks like Nvidia to quantum computing stocks [1] - Nuclear power is gaining traction due to the increasing electricity demands of data centers and the preference for clean energy, with companies like Oklo receiving government endorsement and contracts [1] - The IPO market is poised for a boom rivaling or exceeding 2021, driven by real ideas and opportunities for companies to raise capital, even those with no earnings and little revenue [3][4] Company Financial Performance & Strategies - Quantum computing companies are losing "gobs of money" and have almost no revenue, but their high stock prices allow them to issue new shares and raise capital [1] - Oklo, despite having no earnings and losing money, is offering $400 million worth of stock after being selected to power an Air Force Base in Alaska with a nuclear power plant [1] - Voyager Technologies, a space and defense company, launched a successful IPO, issuing 1235 million shares at $31 after initially planning to sell 11 million shares at $26-$29, and opened at $6975 [1] Risks & Cautions - The market's extreme speculation is reminiscent of the 1990s, with money being taken away from mainstream companies like Nvidia to fund companies with no earnings and little revenue [1][3] - Kroger stock is "rolling over" and investors are advised to buy in stages rather than all at once [3][4]