Vehicles sit parked outside the Tesla Inc. solar panel factory in Buffalo, New York, U.S., on Wednesday, Dec. 26, 2018.
Andrew Harrer | Bloomberg | Getty Images
The equal-weighted index comprises stocks of companies with products and services that are key to the professional and personal lives of millennials and members of Generation Z. The world’s two largest cryptocurrencies by market value, bitcoin and ether, also are included in the Next Generation 50 index.
Cramer looked at five of his favorite senior growth stocks — companies that are a bit more mature — and five of his favorite junior growth stocks, which he described as “higher risk, higher reward.”
- Cramer picked Amazon to be No. 1 in this group, touting its cloud-computing division, Amazon Web Services, as integral to the increasingly digital world. He also said Amazon’s highly profitable advertising business is showing favorable growth signs.
- While Google-parent Alphabet is dominant in the lucrative online search market, Cramer said its Google Cloud unit is likely to power the company’s next leg of growth.
- The electrification of transportation is a huge theme for young people, yet the dominant U.S. player, Tesla, is still lacking “meaningful competition” in the EV market, Cramer said.
- Cramer said cyber security firm Palo Alto Networks is perfectly positioned to benefit from the hybrid work environment, which is likely to be commonplace even after the Covid pandemic.
- Cramer said he’s less focused on near-term questions focused on iPhone 13 demand and more focused on Apple’s demonstrated brand strength among millennials. The latter is an important long-term tailwind, he said.
- Online gaming platform Roblox, which is popular among young people, has demonstrated that its pandemic-era popularity can outlast the public health crisis, Cramer said.
- The e-commerce marketplace Etsy appeals to millennials who want to support the platform’s independent sellers and have an eco-friendly mindset, Cramer said. However, investors who want a “smooth ride” should avoid Etsy shares, Cramer said. “It’s always a bumpy one.”
- Cramer complimented Airbnb’s management and the company’s ability to stay ahead of rivals. He said Airbnb’s home-rental platform may be further aided by the Covid omicron variant if more travelers decide to eschew large hotels.
- Cramer said he believes Enphase Energy is the only solar panel company worth owning for the long term.
- Affirm is a leader in the increasingly popular buy now, pay later industry, Cramer said, highlighting the company’s partnership with Amazon and its CEO, Max Levchin. He said thinks Affirm will continue to disrupt parts of the financial system.
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market. Disclosure: Cramer’s charitable trust owns shares of Amazon, Alphabet and Palo Alto Networks.