Nowhere else to go but up Jim Cramer likes these 3 mega-cap tech stocks that have been soundly shellacked in 2022 – Yahoo Finance

Nowhere else to go but up Jim Cramer likes these 3 mega-cap tech stocks that have been soundly shellacked in 2022

With the Nasdaq Composite down 24% year to date, sentiment towards tech stocks is far from bullish.

Its hard to predict when the market will bottom, but CNBCs Jim Cramer sees big opportunities in the tech space.

While they may stay losers, the bottom line is theyve fallen so darn far that I think theyve become metaphors for a whole host of stocks that are now ready to rally because theyve got nowhere else to go but up, he said on Tuesday.

The Mad Money host points to three big-name tech stocks that are down substantially in 2022.

Heres a look at each one of them.

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.

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 companys ambition in the metaverse was once considered a big catalyst for the stock. But that enthusiasm doesnt seem to apply to todays market as most metaverse-related stocks are deep in the red.

Cramer, however, continues to believe in the concept.

The stocks 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.

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Cramer adds that Zuckerberg is not alone in this endeavor. Some of the smartest guys in the industry like Nvidias 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.

The third one on Cramers 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.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Nowhere else to go but up Jim Cramer likes these 3 mega-cap tech stocks that have been soundly shellacked in 2022 - Yahoo Finance