(An earlier version of this item incorrectly stated that Netflix would have gotten a bid from the AAP portfolio rather than from an M&A suitor if its price had dropped.)

Jim Cramer says he loves the business models of the FANGs -- Facebook (FB) , Amazon (AMZN) , Netflix (NFLX) and Alphabet/Google (GOOG) , (GOOGL) -- but won't buy Amazon or Netflix for his charitable trust unless their earnings multiples drop.

Cramer said in an exclusive monthly conference call with members of his Action Alerts PLUS club for investors that while the trust owns FB and GOOGL, he's holding off on adding AMZN and NFLX due to high valuations.

"Amazon [is] absurdly valued, but it is an unbelievable franchise," Cramer said. "Netflix is just ... a market-capitalization [call]. Had it dropped, I think it would have gotten a bid [for a takeover]."

Cramer added that because the trust already owns two FANG stocks, "you're not diversified if you own all four. We think we own the two cheapest because Facebook is 22x next year's earnings and Alphabet is 20x next year's earnings. .. It's difficult to justify [those] valuations."

Want to join in on Jim's monthly conference calls? Click here for a free 14-day trial subscription to Action Alerts PLUS and hear all of February's call, get e-mails before Jim makes any trade and enjoy lots of other exclusive material.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long FB and GOOGL.

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