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• Jim Cramer reveals the best time to buy FAANG stock
• Analysts are said to react exaggeratedly
• Plenty of positive news on FAANG stocks
FAANG is an acronym for five major tech stocks: Facebook parent Meta, Amazon, Apple, Netflix and Google parent Alphabet. They have dominated the stock market for some time and have long been the favorites of the stock market. Jim Cramer was one of those who helped the acronym to its current notoriety.
The right time to get into Apple shares & Co.
Investors should buy FAANG stocks the next time they’re going down, which is causing many analysts to be bearish on these tech stocks, Jim Cramer said on CNBC’s “Mad Money” investment show. When analysts flock to say that FAANG stocks are not worth investing in, “the perfect moment to buy has come,” according to the stock market expert. According to the former hedge fund manager, analysts tend to tout tech giants at times when there’s little news about them, but when prices fall, they are quick to turn around and issue “completely exaggerated” reports that the stocks are not worth investing in can invest.
This advice is very reminiscent of a stock market adage by Warren Buffett, the Oracle of Omaha: “Be fearful when others are greedy and be greedy when others are fearful.” The 91-year-old Wall Street legend has been very successful with this counter-cyclical trading approach for many years.
Positives on FAANG shares
In the further course of the “Mad Money” program, Jim Cramer also went into detail about the FAANG shares and had something positive to say about each one: The meta share, for example, could benefit if Facebook’s new short video function Reels becomes a successful competition to TikTok. Cramer believes Amazon’s stock is undervalued given the earnings strength of its Web Services division and its advertising business. Meanwhile, Apple is planning a subscription service this year. The stock market expert believes that this would show Wall Street that the stock is worth significantly more than the price at which it is currently being traded. Jim Cramer explained on Netflix that the streaming giant is continuing to advance its gaming venture and is now taking over its third game studio, Boss Fight Entertainment. As for Alphabet, Cramer says the new terms for the Google app store are poised to quickly attract a large number of new content creators, which should bring Alphabet significant additional revenue.
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