Mad Money w/ Jim Cramer 12/11/24
Mad Money w/ Jim Cramer
Deep Dive
Why is the Nasdaq reaching record highs?
The Nasdaq crossed 20,000 for the first time, up 1.77%, driven by the shift in government regulation, particularly the replacement of antitrust-focused regulators with pro-business ones, which is expected to reduce corporate interference and boost stock prices, especially for tech giants.
What changes in government regulation are benefiting tech companies?
The replacement of antitrust-focused FTC head Linda Kahn with pro-business regulator Andrew Ferguson is a significant shift. This change is expected to reduce the threat of litigation and government interference, allowing tech companies like Apple, Amazon, and Alphabet to operate more freely.
Why is Apple's stock performing well despite antitrust lawsuits?
Apple's stock has rallied due to the expected reduction in antitrust scrutiny under the new administration. The Biden administration's attempts to sue Apple for monopolistic practices are likely to be scaled back, allowing the company to focus on innovation and growth, contributing to its 250,908% gain since going public.
How has Amazon benefited from the change in FTC leadership?
Amazon's stock has risen as the new FTC chair, Andrew Ferguson, is expected to be less aggressive towards the company compared to his predecessor, Linda Kahn. Kahn had criticized Amazon for its market power, but Ferguson's pro-business stance is seen as a positive for Amazon, which has seen a 306,913% gain since its IPO.
What is driving Alphabet's stock performance?
Alphabet's stock has rallied due to the expected reduction in antitrust scrutiny under the new administration. The Biden Justice Department's attempts to dismantle Alphabet's business are likely to be halted, and the closure of GM's self-driving business has reduced competition for Alphabet's Waymo, boosting its value.
Why is Meta's stock rising?
Meta's stock is rising as the FTC's investigation into the company is expected to proceed under a more favorable regulator, Andrew Ferguson, rather than the antitrust-focused Linda Kahn. This shift is seen as a positive for Meta, which has seen a 1,565% gain since its IPO.
What is the significance of Sempra's growth in the utility sector?
Sempra has grown 2,192% since the start of the century, outperforming the S&P 500's 559% gain. The company is benefiting from a super cycle in the utility sector, driven by increased demand for electricity due to data centers and AI. Sempra's focus on natural gas and LNG projects positions it well for future growth.
Why is Ollie's Bargain Outlet stock surging?
Ollie's stock surged 13% after its latest earnings report, despite revenue and same-store sales being slightly below expectations. The company's strong profitability and expanding store count, including the acquisition of 99-cent-only stores, have positioned it as a legitimate player in the off-price retail space.
What does the VIX indicate about the market's current state?
The VIX, or volatility index, has started to rise alongside the S&P 500, which is unusual. Typically, the VIX falls when the S&P rises, indicating investor confidence. The recent rise in the VIX suggests that institutional investors are buying options to protect against volatility, signaling potential market turbulence ahead.
Why is the demand for data centers increasing?
The demand for data centers is surging due to the growth of AI, generative AI, and knowledge factories. These centers require significant energy, primarily natural gas, to operate 24/7. Companies like GE Vernova are seeing their order books filled until 2028 due to this insatiable demand for data center infrastructure.
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