Tech stocks have led the current market downturn and most of these, including big techs, have seen billions wiped away from their market capitalization.
What Happened: CNBC’s “Mad Money” host Jim Cramer on Tuesday recommended a bunch of beaten-down tech stocks that could make a comeback when the Federal Reserve begins to reverse course.
Nearly all the tech stocks, with the exception of Apple Inc. (NASDAQ:AAPL), have been cut in half despite their fundamentals not coming down as much, Cramer said.
“Their stocks just got way ahead of themselves before the Fed took away that easy money,” he added.
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Looking back at the dot-com collapse, the stock picker said it is unlikely that all stocks survive the current period of economic downturn.
“Back then, it was the best breed that eventually managed to rebound — the rest of them just never came back,” he said.
Cramer also said many pandemic plays may not recover from this year’s challenges.
“Once the Fed relents, I’d much rather be in Big Tech, or the top cloud plays, or the better-run chipmakers like Advanced Micro Devices Inc. (NASDAQ:AMD) and Nvidia Corporation (NASDAQ:NVDA),” he added.
Cramer’s Big Tech/software Recommendations:
- Amazon Inc. (NASDAQ:AMZN)
- Microsoft Corp. (NASDAQ:MSFT)
- Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG)
- Tesla Inc. (NASDAQ:TSLA)
- Netflix Inc. (NASDAQ:NFLX)
- Salesforce Inc. (NYSE:CRM)
- ServiceNow Inc. (NYSE:NOW)
- Adobe Systems Inc. (NASDAQ:ADBE)
- Workday Inc. (NASDAQ:WDAY)
Price Action: The Technology Select Sector SPDR Fund (NYSE:XLK) closed Tuesday’s session up 1.94% at $133.20, according to Benzinga Pro data.
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