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Cramer pins the tech sell-off to Democratic Silicon Valley executives upset about Trump

Cramer pins the tech sell-off to Democratic Silicon Valley executives upset about Trump
VIDEO9:3009:30
Cramer pins the tech sell-off to Democratic Silicon Valley executives upset about Trump

It wasn't long ago that Jim Cramer was convinced that technology stocks were being sold off by money managers to fund stocks that will do well under President-elect Donald Trump — but now he's changed his opinion.

"With all of the money pouring from bonds into stocks, I'm not sure if that source of funds argument is as central as I initially thought," the "Mad Money" host said.

While Trump hasn't said much about the technology industry, Cramer heard several CEOs from the technology sector pushing the message that a Trump presidency could be catastrophic for innovation.

"Silicon Valley is a Democratic Party stronghold, and many tech executives decided to play politics ahead of the election," Cramer said.

Now that Election Day is over, while these executives may not like Trump, they do love his tax cuts and plan to allow them to repatriate overseas earnings.





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Thus, the Trump administration could be less negative for technology than many investors were initially led to believe, and Cramer is less worried that tech stocks are merely a source of funds.

Broadcom was a perfect example for Cramer, which just grew more powerful with its merger of Avago. The stock exploded higher on Friday after reporting a strong quarter. Going in to the quarter, the stock was down nearly 7 percent since the election.

With this in mind, Cramer went down the list of tech stocks that have fallen behind since the election that could go higher.

His top picks included Salesforce.com, Adobe, Facebook, Electronic Arts and Take-Two Interactive.

"I think the post-election sell-off in names like Salesforce or Adobe or Facebook or Electronic Arts has been a gift, which is why these stocks belong on your shopping list," Cramer said.

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