Jim Cramer said that unless a public company is the best in all aspects of its business, it cannot be a “best-in-class” company.
Now facebook (FB)-Get Facebook, Inc. Class A report As a first-class company, it’s up in the air.
“Great companies have the upper hand,” Kramer wrote recently on Real Money. “First-class companies will not disappear, and you can’t sell them because they are durable and have the best management.”
Currently, the ubiquitous rise in interest rates has led to a massive sell-off of technology stocks. “At this moment, you can’t touch Salesforce (Customer relationship management)-Get salesforce.com, Inc. report Or serve immediately (now)-Get ServiceNow, Inc. report; Apple (AAPL)-Get Apple Inc. (AAPL) report Is toxic,” Kramer said. “Facebook is a black hole, and Amazon (Amazon)-Get Amazon.com, Inc. report Due to labor costs, its number has been reduced. “
However, it is important for Kramer that you don’t throw away Amazon or Apple just because other people are doing it. “Think of all the time you see people abandoning Alphabet (Google)-Get Alphabet Inc. Type A report Or Microsoft (Microsoft Financial Services)-Get Microsoft Corporation (MSFT) report Only when industrial stocks weaken or banks miss their numbers will they come back to them, which may happen again when they report a few weeks later,” Kramer pointed out.
This is why you need to consider what is the best variety and can solve the problem. “Do you really think Amazon doesn’t know how to control costs?” Kramer asked. “Are you really worried about Apple’s iPhone expansion because you see China’s power cuts leading to factory closures?
The fly in the ointment is some worrying FAANG signs.
Kramer said: “I want to know whether Facebook will be really boycotted by advertisers for fear of illegal content.” “We saw the head of Instagram talk about suspending the development of children’s websites. I think this is an admission that they must do more. Many things. I also realize that Salesforce CEO Marc Benioff (Marc Benioff) is now often considered the godfather of technology and does not have a positive view of the company.”
Companies will not be the best in their class unless they are the best in everything they do. “So Facebook is in balance,” he added. “I believe that CEO Mark Zuckerberg can switch, even if he thinks he is doing everything possible to make his website secure. However, it does not depend on him. It must be decided by others in the company, and he must benefit To him. Otherwise, this company will become another company operating in the same way. In such a decline, you will want to buy great American companies that have temporarily fallen out of favor, and Facebook, which I own from a charitable trust, will not become one of them. one.”
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