Jim Cramer says Oracle and OpenAI face harsh reality as the year of “magical investing” loses steam

Jim Cramer warned on Friday that the year of “magical investing” will hit Oracle and OpenAI the hardest as markets become more cautious about the valuations of big technology companies, especially given the recent surge in their investments in artificial intelligence (AI).

“Until the market forces the hands of Oracle and OpenAI to be more disciplined, we may have to endure this sell-off,” Cramer said in a post on X.

The market’s recent sell-offs have raised fears that strong momentum so far may be fading this year, which Cramer calls the year of “magical investing.”

Financial leaders like Michael Burry have expressed concerns about certain big-name tech stocks. “The Big Short” legend Burry of Scion Asset Management has placed a short bet…