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Jim Cramer remain bullish on tech sector with some conditions
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Loading...For those not familiar with the original FANG, it's the acronym Cramer coined for Facebook, Amazon, Netflix and Alphabet, before it had changed its name from Google. Both Facebook and Alphabet are current Action Alerts PLUS holdings.
Cramer said he's not fond of owning Facebook ahead of its earnings reports because it typically declines immediately afterwards. However, after its post-earnings decline, investors should buy this stock "with both hands." Why? Because Facebook plays, and spends, to win and clearly caters to users over shareholders, a strategy that has worked markedly well over the years.
Shares of Amazon may look expensive on an earnings basis, but the stock doesn't trade on earnings, Cramer told viewers. The future of retail belongs to Amazon, and that's what has shareholders so excited.
Netflix is another company in control of its own destiny. When asked about who its competition is, CEO Reed Hastings simply replied, "sleep."
What can you say about Google? The company is so much more than just selling ads. They have everything from billions of video views a day on YouTube to web services and self-driving cars.
As of that extra 'A', Cramer said he's adding Apple, another Action Alerts PLUS holding, as this company's service revenue is becoming the shining star that all other service revenues will be judged against.
GrubHub Worries
Sales may be growing by 40% at takeout delivery service GrubHub, but Cramer says he still cannot recommend the stock, as the restaurant business is changing right before our eyes.
It's no secret that most restaurants don't make their money from their meals, they make it from drinks, appetizers, desserts and yes, their well-stocked bars. The investors know about this and sell the sector and the this company.
In his "Executive Decision" segment, Cramer once again sat down with Marc Benioff, chairman and CEO of Salesforce.com, to talk about a variety of issues affecting the tech industry.
Benioff first commented on his meetings with President Trump, saying that America needs to do a lot better retraining our workforce for the digital age. He said countries like Germany do a far better job with apprenticeships than we do, which is why he proposed creating five million new apprenticeships in the tech industry.
In the Lightning Round, Cramer was bullish on Alaska Air Group (ALK) , Southwest Airlines (LUV) , Brooks Automation (BRKS) and Hewlett Packard Enterprise (HPE) .
Source: The Street
Jr Trader Petar Milanov
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