Investors should buy FAANG stocks next time they plunge and analysts turn bearish, CNBC’s Jim Cramer said Friday.
When analysts come out in droves to claim FAANG stocks are uninvestable, “that’ll be the perfect moment to do some buying,” he said. FAANG is Cramer’s acronym for Facebook-parent Meta, Amazon, Apple, Netflix and Google-parent Alphabet.
Cramer said that while analysts tend to praise big tech stocks during weeks like this one, when there’s little news about them reported, investors should beware of analysts turning the other way and churning out “greatly exaggerated” reports of the stocks’ uninvestability when prices are down.
The “Mad Money” host also gave a rundown on recent developments from each of the FAANG companies, and gave his take on each stock.
Cramer said that CEO Mark Zuckerberg’s strategy of honing in on Reels to beat competitor TikTok, “that could be worth fifty points to the stock.”
Cramer said that after looking at “the earnings power of their Web Services division and their advertising business,” he thinks the stock is “ridiculously undervalued.”
An Apple subscription service, which is reportedly launching later this year for iPhones, would allow them to “easily calculate the lifetime value of their subscribers, which would show Wall Street that the stock is worth a heck of a lot more than what we’re currently paying for it,” Cramer said.
The company’s recent acquisition of Boss Fight Entertainment, its third gaming studio, shows that “Netflix promised a whole suite and that’s exactly what you’re getting,” Cramer said.
Google’s recently updated app store terms that offers third-party billing for app makers “means many content creators will sign up with Google quickly and make a ton of money,” Cramer said.
Disclosure: Cramer’s Charitable Trust owns shares of Alphabet, Amazon, Apple and Meta.
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