CNBC's Jim Cramer suggested on Monday that it's not just big tech companies that can lead the market. Instead, he said, companies in other sectors need to become more innovative.
“Rather than lament the small size of the market, maybe we should ask why other companies aren't joining this club,” Cramer said. “Who's to say that pure tech is the only way to win here? If you can actually show smarts as a CEO, have a vision and execute well, you too can be part of the mega-cap world.”
Cramer cited pharmaceutical giant Eli Lilly, whose shares hit new highs in trading on Monday and now have a market capitalization of about $870 billion.
Lilly's success is due to a variety of ongoing innovations, including its popular GLP-1 drugs, Cramer said. Unlike some of its competitors, the company's huge balance sheet allows it to have high production capacity, he said. The U.S. Food and Drug Administration also approved Lilly's Alzheimer's drug last week, marking a significant increase in the limited treatment options for the deadly disease.
The company has also taken steps to avoid the patent cliff, he added, with a series of acquisitions, including biopharmaceutical company Morphic Inc. Eli Lilly announced plans on Monday to buy Morphic, which is developing treatments for inflammatory bowel disease.
“These companies maintain their status through invention,” Cramer said of giants like Amazon, Meta, Apple, Microsoft, Alphabet and Nvidia. “The question isn't why these companies are being made into saints while others are being left behind — that's obvious. The question is, why aren't other companies doing what Eli Lilly is doing and joining the winner's circle?”
Eli Lilly did not immediately respond to CNBC's request for comment.
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Disclaimer CNBC Investing Club Charitable Trust holds shares of Eli Lilly, Amazon, Meta, Apple, Microsoft, Alphabet and Nvidia.
