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The group of stocks that include Tesla (NASDAQ: TSLA) are likely to continue their upward movement during the coronavirus pandemic, CNBC's Jim Cramer said on Monday. Seven companies have entered his new 'Magnificent 7'.
“Until we turn the corner on the pandemic, the earnings themselves are simply an abstraction for these thesis stocks and any disappointment is simply one more reason to buy them,” the “Mad Money” host said.
Cramer's ‘Magnificent 7’ includes Tesla, PayPal, Square, Roku, Zoom Video Communications, Peloton, and Netflix. All of the companies are listed because of the enthusiasm of investors who have helped push the stock higher and higher in recent months.
“Buyers don’t seem to care how well the underlying companies are doing, they want to own those stocks regardless,” Cramer said of the group. "In each case, the thesis is so powerful that it overwhelms any mundane attempt to figure out what the business might be worth."
Tesla is firmly entrenched into the camp of a story stock, he says, and he can't even predict how high the stock will go. Over the past 12 months, the company's shares have soared 738% and up 415% year to date.
“I’ve always said Tesla’s a cult stock, even after I joined the cult last year. That shareholder base isn’t going anywhere and neither am I. Is that circular reasoning? Absolutely. It’s also given you a monster gain in this one.”
© 2020, Eva Fox. All rights reserved.
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Eva Fox holds zero share of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.