Among the tech majors, Apple (AAPL) - Get Report, Microsoft (MSFT) - Get Report, and Alphabet (GOOGL) - Get Report declined Tuesday. The tech-heavy Nasdaq fell 0.38%. Microsoft declined 1.2%, while Apple fell 0.9%.
"While tech is no doubt feeling some extra heat from inflation jitters, it’s a little early to start throwing around the 'wreck' word," said Chris Larkin, managing director of trading and investing product at E-Trade.
However, Jim Cramer said Apple is a key tech stock in his portfolio.
Cramer also said Tuesday on his Mad Money show that investors looking for deals that make sense should consider Salesforce.com (CRM) - Get Report buying Slack (WORK) - Get Report. Salesforce needs Slack to compete with Microsoft (MSFT) - Get Report, he said.
Given the similar focus of Microsoft’s competitors such as Google, Amazon (AMZN) - Get Report, and Apple on both AI and healthcare endeavors, and Microsoft CEO Satya Nadella’s declaration that healthcare is the most urgent application of technology, there is reason to suspect more M&A action might be on the horizon.
In terms of Apple’s ambitions, the idea of acquiring one of the healthcare market leaders is not entirely novel. For now, the tech titan enjoys a strong relationship with Meditech, which has supported medical health records on the iPhone since late 2019. And, it should be noted that Apple might not just be bidding against fellow Big Tech players if it were to try to move into the health records space.
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Here is a list of the technology and FAANG stocks to watch right now based on their performance over the past week:
In early April, Microsoft (MSFT) - Get Report announced a blockbuster $19.7-billion acquisition of Burlington, Massachusetts-based healthcare-focused cloud and AI provider Nuance Communications (NUAN) - Get Report.
“Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI,” Microsoft CEO Satya Nadella said of the acquisition. “AI is technology’s most important priority, and healthcare is its most urgent application.”
The Street Quant Ratings rates Microsoft as a Buy with a rating score of A.
Salesforce (CRM) - Get Report was higher on Wednesday after the sales-tracking software giant received an upgrade from Morgan Stanley analyst Keith Weiss, who sees the company’s longer-term risk-reward potential as more favorable.
Shares of Salesforce were up about 1.46% at $217.50 after Weiss raised his rating on the company to overweight from equal-weight. He kept his one-year price target at $270. The stock has fallen 3.7% year to date.
Cramer said Salesforce is the bellwether for cloud stocks. "It's trying to rally today [Tuesday]; it fails every day. They don't have the Slack deal done. It's the cheapest stock in the group and I'd buy it. I gave it a soft recommendation last night," he added.
The Street Quant Ratings rates Salesforce as a Buy with a rating score of B-.
Zoom Video Communications
Zoom shares fell as much as 8% in the last two trading sessions, but the stock rebounded nicely Friday, climbing 5.6% to $306.46 Friday afternoon.
TheStreet Quant Ratings rates Zoom Video Communications as a Sell with a rating score of D+.
Various fintech names like PayPal (PYPL) - Get Report and Square (SQ) - Get Report have been aggressive in the cryptocurrency space. The two fintech giants offer users the ability to buy and sell cryptocurrency, and potentially even transact them at stores. Last month, PayPal’s Venmo unit opened its service to buying, selling, and holding cryptocurrency directly within the Venmo app with as little as $1.
Payment-tech icon PayPal agreed to acquire Happy Returns, an online product-returns provider and drop-off service. Terms weren't disclosed, but PayPal expects the deal to close in this quarter, according to MarketWatch.
TheStreet Quant Ratings rates PayPal as a Buy with a rating score of B+.
Facebook (FB) - Get Report shares fell this past week after Citigroup analyst Jason Bazinet downgraded the tech titans to neutral from buy. The company depends on advertising for almost all of its revenue, and Bazinet sees ad-spending growth decelerating.
Facebook reported strong first-quarter earnings, with net income of $9.5 billion, or $3.30 a share, compared with $4.9 billion, or $1.71, a year earlier.
TheStreet Quant Ratings rates Facebook as a Buy with a rating score of A-.
Apple (AAPL) - Get Report announced Wednesday that the company will be releasing software features designed for people with mobility, vision, hearing, and cognitive disabilities.
Later this year, people with limb differences will be able to navigate Apple Watch using AssistiveTouch, iPad will support third-party eye-tracking hardware for easier control, and Apple's industry-leading VoiceOver screen reader will cater to blind and low vision communities.
The company is also launching a new service on Thursday called SignTime. This enables customers to communicate with AppleCare and Retail Customer Care by using American Sign Language (ASL) in the US, British Sign Language (BSL) in the UK, or French Sign Language (LSF) in France, right in their web browsers.
TheStreet Quant Ratings rates Apple as a Buy with a rating score of A.
Cramer said $4,000 is the bare case for Amazon. "It's interesting [Nowak is] saying there is going to be a multiple based on earnings and at that point, it's going be cheaper vs other stocks -- that's encouraging," Cramer said.
Amazon.com reportedly is looking to double down on its efforts to reign in Hollywood. The e-commerce giant and owner of the Amazon Prime studios and content-streaming service reportedly is in negotiations to acquire the film studio Metro-Goldwyn-Mayer for as much as $10 billion.
TheStreet Quant Ratings rates Amazon as a Buy with a rating score of B.
Netflix (NFLX) - Get Report shares traded lower Monday, with streaming rivals including Comcast (CMCSA) - Get Report and Walt Disney (DIS) - Get Report trading further in the red, as investors reacted to a potential media sector-changing merger deal between AT&T (T) - Get Report and Discovery (DISCA) - Get Report.
Netflix said last month that it expects to add around 1 million new subscribers to its streaming service -- the largest in the world -- this quarter, a figure came in well shy of Street forecasts of around 4.8 million. The estimate followed a weaker-than-expected March quarter tally of 3.98 million, which also missed analysts' estimates of a 6.25 million total.
Netflix shares were marked 0.6% lower in early trading Monday to change hands at $490.90 each, a move that would extend the stock's year-to-date decline to around 9%.
TheStreet Quant Ratings rates Netflix as a Buy with a rating score of B.
Alphabet recently traded at $2,275.05, down 0.73%. But last month, multiple analysts raised their price targets for Alphabet after the Mountain View, Calif., advertising and tech giant posted a blowout earnings report for the first quarter.
The company posted a profit of $17.93 billion, or $26.29 a share, compared with $6.84 billion, or $9.87 a share, in the year-earlier quarter.
TheStreet Quant Ratings rates Alphabet as a Buy with a rating score of A.
Salesforce, Microsoft, Facebook, Apple, Amazon, 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.