If you find yourself debating whether Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report is still a growth stock, you're missing the point, Jim Cramer told his Mad Money viewers. There are plenty of companies that are doing everything right, and rewarding shareholders in the process.
There's been debate as to whether Netflix's growth still warrants making it the "N" in FAANG. But Cramer said when you find yourself debating growth rates, the debate is usually over.
FAANG is Cramer's acronym for Facebook (FB) - Get Facebook, Inc. Class A Report, Amazon (AMZN) - Get Amazon.com, Inc. Report, Apple (AAPL) - Get Apple Inc. (AAPL) Report, Netflix, and Alphabet (GOOGL) - Get Alphabet Inc. Class A Report.
However, Stephen Guilfoyle, a Real Money contributor, thinks that Netflix and maybe one other name in FAANG aren't lifting their fair share of weight to be included among the biggest tech companies in the world.
Tech stocks and the overall market were under pressure this past week as stocks closed near the lows on Friday. But, if there’s one thing that can prop up the markets, though, it’s big tech. Apple, Microsoft (MSFT,) - Get Microsoft Corporation (MSFT) Report and Amazon account for $6.25 trillion in combined market caps.
Red-hot inflation numbers don't have to spell bad news for your portfolio, Cramer told his Mad Money viewers. There is one sector that's immune to inflation and rallies the most -- technology.
Lacking a crystal ball, Cramer said your best bet for gauging the market all comes down to his beloved FAANG stocks, which have been largely immune to recent selling. “Key to the rollover is so they [sellers] finally get to FAANG,” Cramer said.
However, Cramer added that this is far from your moment to give up hope and stop looking for stocks to buy. “I can’t say I love the market, but if you don’t nibble on something, you’re foolish...You have to find something you like,” Cramer added.
Here is a breakdown list of the technology and FAANG stocks to watch right now based on their performance over the past week:
Social media titan Facebook has called for Federal Trade Commission Chair Lina Khan to be recused from joining in decisions regarding the FTC’s antitrust lawsuit against the company. She’s got a grudge against Facebook, the company claimed in a petition to the FTC.
“Chair Khan has consistently made public statements not only accusing Facebook of conduct that merits disapproval but specifically expressing her belief that the conduct meets the elements of an antitrust offense," the company said.
Apple reportedly is going all-in on 5G, with all of its next-generation iPhones to be released next year being 5G-capable, including its first revamp of its budget handset in two years. Nikkei Asia reported that Apple will not introduce any new 4G models next year, and will instead begin selling a version of its cheapest handset - the popular iPhone SE - that is compatible with the next-generation communication standard.
The report comes as investors await Apple’s third-quarter earnings, which will be released next Tuesday. Analysts polled by FactSet are expecting earnings of $1.01 a share on revenue of $73.1 billion, both of which Wedbush Securities analyst Dan Ives called “conservative.”
Apple reportedly is looking for a big production facility in Los Angeles, as the consumer electronics giant seeks to expand its Apple TV+ entertainment business.
Cramer says small businesses are the backbone of the American economy and investors should look to the companies supporting small businesses -- like Etsy (ETSY) - Get Etsy, Inc. Report, along with Shopify (SHOP) - Get Shopify, Inc. Class A Report and Square (SQ) - Get Square, Inc. Class A Report.
"If you're buying Shopify because the stock is going higher, but you don't really know what Shopify does, then you're gambling," Cramer said from the floor of the New York Stock Exchange. "If you're buying Shopify because you know of or are part of a small business that is benefiting from it and you know that more than 2 million businesses are benefitting ... you're not [gambling]."
Shares of Salesforce.com (CRM) - Get salesforce.com, inc. Report ticked higher after the customer-relations-management-software titan closed its purchase of business-communications platform Slack (WORK) - Get Slack Technologies, Inc. Class A Report.
In an interview on Mad Money, Cramer spoke with Marc Benioff, chairman and CEO of Salesforce.com, who said that Slack is transforming the way we work and the pandemic only accelerated that transformation. Salesforce has been integrating Slack into all of its products and the result has been that everything got even better.
When asked about the post-pandemic situation, Benioff explained that for Salesforce, that means some people will come back to the office, but 50% to 60% will not. It also means more offsites and events will be needed to maintain their culture. Salesforce's Dreamforce conference, for example, will take place simultaneously in four cities around the globe.
"I remember Snap (SNAP) - Get Snap, Inc. Class A Report as an excellent trading vehicle in the fourth quarter," wrote TheStreet's Bret Kenwell. Shares trended higher for the first few weeks of October, then erupted higher near the end of the month. After chopping around in November, the stock climbed toward $55 -- more than double where it was trading in October. It was on fire -- but we couldn’t expect that action to last forever, he added.
While Snap’s momentum carried into the new year, it topped out in February like most other growth stocks. On the ensuing dips, it found support from a key VWAP measure. Although bulls have continued to pound the table due to the company’s growth, the stock has had trouble regaining momentum.
Microsoft may have been lost in the shuffle this past week, but the software giant had investors’ attention early in the session. That’s after the White House said the cyberattack on the company came from China. The U.S. and many allies accused China of backing cyberattacks against public and private entities, including the March strike against Microsoft.
Blue Origin, the space tourism company founded by Amazon Executive Chairman Jeff Bezos, successfully launched and landed a crew of four after flying past the Karaman line, which defines the boundary between the Earth's atmosphere and space. This event marked another beginning for commercial space travel following Virgin Galactic's (SPCE) - Get Virgin Galactic Report launch of Richard Branson earlier this month.
The company's booster blasted the trio off into space more than 250,000 feet above the earth and landed safely back on earth within 7:30 seconds while the crew capsule returned to Earth, descending at about 16 miles per hour, about 10 minutes following liftoff. The space-flight startup blasted Bezos and three other tourists 66 miles above Earth in a fully autonomous rocket and capsule.
While Jim Cramer still sees space as a high-risk investment, he told Action Alerts PLUS senior analyst Jeff Marks that if you're going to take the risk, Cathie Wood's ARK Space ETF is the way to go.
Netflix missed on earnings expectations despite reporting global net subscriptions ahead of estimates. The streaming giant reported earnings of $2.97 a share on revenue of $7.34 billion. Analysts were expecting the company to report earnings of $3.18 a share on revenue of $7.32 billion.
“If you focus on Netflix, you’re missing the bigger picture of corporate America doing very well,” said Cramer, who maintained he's been "a huge backer of Netflix for ages."
Cramer told Action Alerts PLUS senior analyst Jeff Marks that the company's earnings call didn't make Netflix seem like the growth stock it has been in the past.
Shares of Alphabet are up 45% for the year, and for good reason. Google doesn't have exposure to rising oil and gas prices. It doesn't have to worry about the price of plastics or packaging. Freight costs? Nope. Cramer called Google a "banana of non-inflation," which makes it the perfect stock in a rising interest rate environment.
Tech stocks were affected by the move from 37 state attorneys general to file an antitrust lawsuit against Google parent Alphabet alleging it used restrictive contracts with developers to maintain a monopoly in its Google Play app store. The lawsuit alleges the company illegally abused its power over the sale and distribution of apps through the Google Play store so it could collect "extravagant" commissions of up to 30% on app purchases, the states said.
Salesforce, Microsoft, Facebook, Apple, Amazon, PayPal and Alphabet are holdings in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells these stocks? Learn more now.