Sonyundefined reported earning Friday morning, sending the stock racing higher by nearly 20%. So should investors buy it? Not necessarily, when you can buy Facebook (FB) instead, according to TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio.
Facebook's virtual reality company, Oculus VR, will have the hottest product in 2017 and will be a hit in the gaming community, Cramer said. Plus, it's not as if Facebook didn't just report a great earnings result of its own.
Moving to semiconductors, Cramer called Nvidia (NVDA) one of his favorite semi stocks. Why? Because it isn't as levered to Apple (AAPL) as many of its peers are. Although Apple is an enormous company, smartphone sales growth is slowing, and that will likely be the case for a while.
Once Apple introduces a new iPhone, sales could reaccelerate though, Cramer said. If the rumors about Apple are true regarding wireless charging, investors may also want to check out Integrated Device Technology (IDTI) , he added.
Shifting gears, Cramer turned his attention to Yahoo! (YHOO) , saying investors can stay long in the stock even though it trades based completely on how shares of Alibaba (BABA) are trading. Alibaba reported pretty good earnings results recently, but no one wants to own Chinese companies right now, he said.
Still, the core Yahoo! business is trading with a valuation close to zero, which isn't right, he said. That's why investors can stay long.
Finally, Cramer took a look at Phillips 66 (PSX) . "I don't like anything connected with fossil fuels," he said, explaining that even though oil prices have bounced from the lows, they are still too low for most American producers to be making any money.
At the time of publication, Cramer's Action Alerts PLUS had a long position in FB, AAPL, PYPL and TWTR.