FAANG isn't dead
That's the message that Jim Cramer has for investors.
"Credit. Who gets it? Who doesn't? That's often that it all comes down to and this earnings period is more about credit - the belief in management's ability to navigate these waters - than I have ever seen," Cramer wrote in an afternoon column on Wednesday on Real Money.
"Exhibit A is Netflix (NFLX) , which last night reported an extremely disappointing sign-ups and then gave you an even more depressing outlook about future growth. Hmm, let's see, not so hot quarter, with little hope for better? That's how people interpreted the quarter," he continued.
"That's not how I interpreted it though. Netflix is distinctly not a headline story. You simply cannot make up your mind about this stock unless you read the company's letter to shareholders and then watch the video of management answering questions from an interlocutor. Reed Hastings, one of my absolute favorite CEOs, and why not, his company is the N in FAANG, the pantheon of great stocks of the era - picks a new interviewer to shoot queries to the executive team and this time he picked Nidhi Gupta, an analyst from Fidelity, who wasted no time asking tough questions like why were they so far off of the street's projections and even their own estimates," Cramer wrote.
Recap TheStreet Live: Everything Jim Cramer Is Watching Thursday