Bullish Call: Tom Lee Sees Stocks Rebounding in 2027 Amid Quantum Computer Threat to Bitcoin

Two influential voices on Wall Street, Jim Cramer and Tom Lee, made bullish calls that could impact investors' next move. Tom Lee, head of research at Fundstrat, expects 2027 to be a 'banner year' for stocks, while Jim Cramer recommends buying Amazon on any dip.

Lee attributes the recent stock market drop in July to a single fund, Situational Awareness, which heavily borrowed to bet on artificial intelligence (AI) stocks and had to sell when they fell. This led to a significant decline in its value from $45 billion to around $10 billion, mainly affecting South Korea's market.

Lee believes the selling was not due to weak company profits but rather this one blown-up fund. He expects August to be a recovery month and predicts the S&P 500 index will reach 7,800, currently sitting at 7,605.

Cramer, on the other hand, thinks Amazon is a stock to buy on any downturn, citing its strong quarterly performance in cloud services and analysts' price target hikes reaching $400. He also remains bearish on Bitcoin, warning that quantum computers could potentially crack the encryption guarding wallets within three to four years.