Amazon (AMZN)

Cramer began by talking about Amazon, which despite its dominance in the e-commerce industry, is down 28% year to date.

He believes that Amazon remains a growth stock, but for the company to increase its investor appeal, it needs to “take its medicine.”

“They got to cut back on warehouses that are no longer needed, cut back on workers who can get new jobs quickly if they let them go to this environment, and get more aggressive on the advertising side of retail while maintaining a big lead in the cloud with Amazon Web Services.”

Cramer points out that Amazon could earn $82 a share in 2024, but after taking those initiatives, that $82 of EPS in 2024 could become $100.

“And you're buying Amazon stock for close to market multiples in those numbers.”

Fine wine is a sweet comfort in any situation — and now it can make your investment portfolio a little more comfortable, too. Now a platform called Vinovest helps everyday buyers invest in fine wines — no sommelier certification required.

Invest Now

Meta Platforms (FB)

Even mega-cap stocks can plunge violently.

Owning some of the largest social media and messaging apps in the world — Facebook, Instagram, WhatsApp, and Messenger — Meta is a tech gorilla commanding hundreds of billions of dollars of market cap.

Yet shares have fallen 44% year to date.

The company’s ambition in the metaverse was once considered a big catalyst for the stock. But that enthusiasm doesn’t seem to apply to today’s market as most metaverse-related stocks are deep in the red.

Cramer, however, continues to believe in the concept.

“The stock’s trading like the whole metaverse thing is just one big joke being played on Mark Zuckerberg, which seems pretty unlikely to me given his track record.”

Cramer adds that Zuckerberg is not alone in this endeavor. Some of the “smartest guys in the industry” like Nvidia’s co-founder and CEO Jensen Huang are betting big on the metaverse as well.

Note that Meta Platforms will start trading under a new ticker “META” on Jun. 9.

Alphabet (GOOGL)

The third one on Cramer’s list of “colossal losers” is Google parent company Alphabet.

Despite being down 21% year to date, Alphabet is still a tech behemoth valued at $1.5 trillion.

Cramer likes Alphabet for a very simple reason: “Google remains the best way to advertise.”

In Q1, Google advertising brought in $54.7 billion of revenue, up 22.3% from a year ago. Revenue grew 23.0% year over year to $68.0 billion for the entire company.

While there have been some concerns about corporations’ ad spending in this economic climate, Cramer thinks Alphabet will be fine.

“We all know if you're cutting back on advertising, you're not cutting back on Google, you're cutting back on everything else,” he says. “Google is the way you move product that you can't move on Amazon or Instagram.”

Get a piece of commercial real estate

Enhance your portfolio with high-return commercial real estate

First National Realty Partners is the #1 option for accredited investors seeking superior risk-adjusted returns in the grocery-anchored necessity-based retail space.

While commercial real estate has always been reserved for a few elite investors, outperforming the S&P 500 over a 25-year period, First National Realty Partners allows you to access institutional-quality commercial real estate investments — without the leg work of finding deals yourself.

Invest with First National Realty Partners now.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.