CNBC’s Jim Kramer said Friday that investors should buy FAANG shares the next time they dip and analysts turn bearish.
When analysts come out in droves to claim that FAANG shares are not investable, “this would be the perfect moment to do some buying,” he said. FAANG is Cramer’s acronym for Meta, Amazon, Apple, Netflix and Google’s Alphabet.
Cramer said that while analysts tend to praise big tech stocks during weeks like these, when there is little news about them, investors should be wary of analysts turning the other way and getting out. “Significantly exaggerated reports of the uninvestability of stocks when prices are low.
The “Mad Money” host also provided a summary of recent developments from each FAANG company, and gave his opinion on each stock.
dead
Kramer said CEO Mark Zuckerberg’s strategy of sharpening Rails to beat rival TikTok, “could be worth fifty points per share.”
Amazon
Cramer said that after looking at “the earnings strength of the web services division and their advertising business,” he believes the stock is “ridiculously undervalued.”
an Apple
Apple’s subscription service, which is said to be launching later this year for iPhones, will allow “to easily calculate the lifetime value of its subscribers, which will show Wall Street that the stock is worth much more than we are currently paying for it,” Kramer said.
Netflix
The company’s recent acquisition of Boss Fight Entertainment, its third game studio, demonstrates that “Netflix promised a complete package and that’s exactly what you’ll get,” Kramer said.
the alphabet
Cramer said Google’s recently updated App Store terms that bill third-party app makers “mean that many creators will sign up for Google quickly and earn a lot of money.”
Disclosure: Cramer Charitable Fund owns shares in Alphabet, Amazon, Apple, and Meta.
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