Facebook and Apple lead the Nasdaq higher, with the Dow Jones and S&P 500 also rising Thursday morning. Jim Cramer took the opportunity Thursday to strike back at opponents who criticized his support for FAANG stocks after excellent quarters from Apple and Facebook.
In the latest episode of Mad Money, Cramer said that large companies are showing excellent profits and are always affected if they are not part of the reopening trade.
TheStreet’s Katherine Ross and Cramer discuss how to trade Alphabet, Microsoft, and Starbucks after profits.
Alphabet: buy or sell?
Technology giant alphabet (GOOGL) – Get the Class A report from Alphabet Inc. released first quarter results that far exceeded expectations, prompting many Wall Street analysts to raise their one-year price targets for the stock.
Analysts from Barclays, Morgan Stanley, Jefferies, Evercore ISI and BMO Capital Markets have raised their price targets on Alphabet stock.
Google also announced that it would repurchase an additional $ 50 billion in shares.
Cramer said Google’s cloud is still quite good and is working to give Amazon Web Services and Azure value for money. “It’s a story of huge growth, of clean growth, but of an action that has come up against it. And when an action finds itself in a situation like this, where every analyst is uniform and positive, let the stock drop then buy it, “Cramer said.
Microsoft: buy or sell?
Microsoft (MSFT) – Get the report from Microsoft Corporation (MSFT) stocks fell on Wednesday despite earnings and sales reports from major computers and software that beat expectations for a ninth straight quarter, but still failed to impress investors and Wall Street analysts.
Cramer said he would wait until Thursday to buy Microsoft stock.
Starbucks: buy or sell?
Starbucks Shares (SBUX) – Get the Starbucks Corporation report fell on Wednesday a day after the coffee shop retailer posted lower than expected revenue, but adjusted profit exceeded expectations and analysts remained bullish.
Cramer said Starbucks could have a two-day shutdown until people realize they’ll be able to turn the tide. They will complete their transformation in the USA, they are only 70% there. They have a lot of new drinks that people love. I think Europe is going to reopen this quarter .. but when they vaccinate the customers come and it is. That’s why they’re doing so well in the United States and the rest of the world will follow, â€Cramer said.
Alphabet, Microsoft and Starbucks are key holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer adds or removes stocks from his portfolio? Find out more now.
