TheStreet.com TV Recap: Net Stocks to Love

Over the next two weeks, a trend people will see is a return to companies that are showing solid earnings potential, Jim Cramer said on TheStreet.com TV's Wall Street Confidential video Monday.

"When you look at who has the most earnings momentum in the first quarter, you're going to come to the interactive portion of the market," he told Gregg Greenberg, the host of Wall Street Confidential.

Cramer said he believes IAC InterActive Corp (IACI Quote) has "tremendous" earnings momentum, as does Yahoo! (YHOO Quote).

In fact, Cramer said his sources indicate that Yahoo! might even be doubling the amount of money it makes on click-through advertising. "Panama is working," he said.

In addition, eBay (EBAY Quote) is having a "tremendous" quarter, and Google is interesting now because it is bottoming, Cramer said.

Ranking his favorite four Internet picks, Yahoo! topped Cramer's list, followed by eBay, IAC InterActive and Google.

On the flip side, Cramer said Advanced Micro Devices (AMD Quote) could go out of business because of stiff competition and overexpansion.

"Intel (INTC Quote) wants to drive them out without Justice Department problems, and I think they're going to do it," he said.

In a separate video segement, Cramer told Greenberg that a lot of people don't understand the role of a corporate treasurer.

Last Tuesday, the market's decline was "vicious," he said, and the corporate treasurers weren't able to take advantage of it because the decline occurred between 2:45 p.m. and 3:10 p.m. EST. "Treasurers were very reluctant to come in and buy at 3:30" because they weren't sure where the market was, Cramer explained.

Meanwhile, on Wednesday the market didn't go down; Thursday it went down quickly and there was no chance to buy; "Friday represented some stability until the last half hour," he said. However, Cramer called today "different," because the market bottomed at 10 a.m.

The Dow bottomed ahead of everything because 29 of the index's 30 stocks have "very active buybacks" and the treasurers are "very schooled" there, Cramer said. He advised market players to take a look at the soft-good companies on the Dow.

He said he also sees "absurdities" going on in the market now concerning Diageo (DEO Quote), and American Express (AXP Quote), which are both down.

Further, although Cramer believes 3M (MMM Quote) is "poorly executed," he said he views Morgan Stanley's recent upgrade of the stock as "important because it said even if the company keeps screwing up, it should be able to bottom."

In addition to a 3% yield, 3M has the "biggest buyback of the major Dow stocks just declared and big Asian exposure," Cramer said. "I'm keying on 3M."

Moreover, he said he's seen "real weakness" across the board except in the soft-drink stocks. PepsiCo (PEP Quote) is trying to put in a bottom and Coke (KO Quote) "is putting one in," Cramer said. "They're both going to go up."