NEW YORK (TheStreet) -- LinkedIn (LNKD) and Tableau Software (DATA) separately issued disappointing fiscal 2016 first quarter guidance after Thursday's market close, dragging down shares of many technology companies on Friday and into this morning.
"FANG" stocks have nonetheless gained about 160% during the past three years, TheStreet's Jim Cramer pointed out on CNBC's Squawk on the Street this morning. FANG is an acronym created by Cramer for a basket of high-performing stocks including Facebook (FB), Amazon.com (AMZN), Netflix (NFLX) and Google's Alphabet (GOOGL).
The difference between FANG stocks and Tableau Software is that FANG stocks aren't all that expensive compared to Tableau Software, which was very highly valued, Cramer explained.
Shares of technology giant Apple (AAPL) are in another league altogether, as they are very inexpensive, Cramer added.
"Don't even think for a moment that Apple is the 'A' [in FANG]" he said. "Apple is valued like an airline stock." He mentioned that Verizon (VZ) has indicated that the iPhone 7 will be very bullish, and that shares of Apple hold up at their current level.
Although Tableau Software certainly contributed to Friday's selloff, LinkedIn was at the heart of it, Cramer noted. Very few people expected the company to issue such disappointing guidance.
"That was a bomb drop," Cramer stated. "I thought LinkedIn was doing very well."
Analysts quickly turned on LinkedIn and Tableau Software, but LinkedIn weighed more heavily on the market since the company had strengths similar to other technology companies, such as success in the cloud, Cramer said.
LinkedIn is a "very real company" that had assured investors that it was performing better than expected, he continued. The key to this market will be whether LinkedIn and Tableau Software can bottom.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
LinkedIn's strengths such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations are countered by weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: LNKD
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.