Vehicles are parked outside Tesla Inc.’s solar cell plant. in Buffalo, NY, USA, Wednesday, December 26, 2018.
Andrew Harrer | Bloomberg | Getty Images
After CNBC unveiled its Next Generation 50 Index on Monday, Mad Money host Jim Cramer highlighted 10 of his favorite stocks included in it.
The weighted index includes stocks of companies whose products and services are key to the professional and personal lives of millennials and Gen Z. The two largest cryptocurrencies in the world by market value, Bitcoin and Ether, are also included in the next generation 50 index.
Kramer looked at five of his favorite growth older stocks – companies that are slightly more mature – and his five favorite growth junior stocks, which he described as “higher risk, higher reward.”
- Kramer chose Amazon to take the top spot in this group, touting its cloud computing division, Amazon Web Services, as an integral part of an increasingly digital world. He also said Amazon’s highly profitable ad business is showing favorable growth signs.
- While Alphabet, Google’s parent company, dominates the lucrative online search market, Kramer said its Google Cloud division is likely to help drive the company’s next phase of growth.
- Vehicle electrification is a huge topic for young people, but the dominant player in the US, Tesla, continues to lack “meaningful competition” in the EV market, Kramer said.
Palo alto networks
- Kramer said cybersecurity firm Palo Alto Networks is ideally positioned to benefit from a hybrid work environment that is likely to become commonplace even after the Covid pandemic.
- Kramer said he is less focused on short-term issues related to demand for the iPhone 13 and more focused on Apple’s demonstrated brand strength among millennials. The latter is an important tailwind in the long term, he said.
- Popular among young people, online gaming platform Roblox has demonstrated that its popularity in a pandemic era can weather a public health crisis, Cramer said.
- The Etsy e-commerce market is reaching out to millennials who want to support the platform’s independent sellers and embrace an eco-conscious mindset, Cramer said. However, investors who want a “smooth ride” should avoid Etsy stocks, Kramer said. “It’s always a bumpy road.”
- Kramer praised Airbnb’s leadership and the company’s ability to stay ahead of the competition. He said Airbnb’s rental platform could still benefit from the Covid omicron option if more travelers decide to ditch large hotels.
- Kramer said he believes Enphase Energy is the only solar panel company worth owning in the long term.
- According to Kramer, Affirm is a leader in an industry that is gaining popularity: Buy now, pay later, highlighting the company’s partnership with Amazon and its CEO Max Levchin. He said that, in his opinion, Affirm will continue to destroy parts of the financial system.
Login Now for the CNBC Investment Club to follow Jim Cramer’s every move in the market. Disclosure: Kramer’s Charitable Foundation owns shares in Amazon, Alphabet and Palo Alto Networks.