Jim Cramer investigates ‘stalling’ stocks in Apple, Meta and Tesla

CNBC’s Jim Cramer explained Thursday why he thinks tech stocks are soaring. apple, meta and tesla All three companies have been “stalling” recently, with annual gains of about 10%.

After the Federal Reserve cut interest rates for the third time in a row this week, large hedge funds and asset managers bought stocks known to benefit from lower interest rates, Cramer said. He suggested that they now prefer companies such as home builders, retailers, banks, industrials and transportation rather than tech giants.

Mr. Kramer emphasized that, Dow Jones Industrial Average and S&P500 Tech industries close at record highs Nasdaq Composite Thursday ended in the red.

“Hedge funds are like herd animals,” he says. “When they move en masse like they do today, trying to go against them and buy a lot of technology becomes very expensive.”

Cramer said Apple is not a clear beneficiary of the rate cut. He added that some investors have criticized the company for investing less in artificial intelligence than its large-cap peers. Meta’s success is not necessarily tied to interest rates, he suggested. He said the stock price was “sluggish because it has become a one-day story on the day it was reported.”

Cramer said lower interest rates will help the auto business, while Tesla is transitioning from a car company to a technology company. Currently, Tesla stock does not trade as if it were part of the auto industry because of its focus on robotics, autonomous driving and energy storage, he added.

“I wish there had been more. I wish we could have been told that something good happened to the winner or something bad happened to the loser,” he said. “At the end of the day, at the end of the day, you’re just looking at the flow of money.”

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Disclaimer CNBC Investing Club Charitable Trust owns stock in Apple and Meta.