Jim Cramer Loves Facebook, Google and Adobe but Not Snap
Cramer drew a sharp distinction between established names like Facebook, Google and Adobe and newly public Snap.
Investors sitting on long-term gains in big tech names such as Facebook (FB) - Get Report , Alphabet (GOOGL) - Get Report and Adobe (ADBE) - Get Report need to be careful about deciding to sell them, according to Jim Cramer.
"What you have to do is you have to say 'OK what is Facebook going to earn in the out years?'" Cramer said recently in an exclusive conference call with members of his Action Alerts PLUS club for investors.
"In 2019 I think it can earn more than eight bucks maybe $8.50. I put a 20 multiple on that and what do I get? Well, I get a stock that is much higher than where it is now and that's the way I look at these long-term growth stocks."
