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Big winners already, Cramer sees even more upside

Wednesday, 4 Sep 2013 | 6:15 PM ET
No Huddle Offense: Zillow overvalued?
Wednesday, 4 Sep 2013 | 6:15 PM ET
Mad Money host Jim Cramer reflects on the action in social, mobile and cloud technology stocks Yelp, Zillow and LinkedIn. "These 3 stocks have defied short calls, and continue to triumph," he says.

(Click for video linked to a searchable transcript of this Mad Money segment)

Starved for growth, Cramer thinks money managers will push shares of these 3 stocks even higher.

They are LinkedIn, Zillow and Yelp.

Fully aware that LinkedIn has gained 109% ytd, and Zillow has gained 269% ytd and Yelp has gained 191% ytd, Cramer expects these high fliers to fly even higher.

"That's how starved managers are for the shares of fast growing companies," Cramer said.

And these companies are growing fast.

In the case of LinkedIn, the company came public is May 2011 and Cramer says the growth has been jaw-dropping. "Only two years later and you have had a four-fold increase in earnings, not revenues, but earnings," Cramer said. "I think earnings could conceivably double again as soon as next year."

Jpa1999 | E+ | Getty Images

Meanwhile Zillow, the website that allows visitors to compare home prices in neighborhoods around the country - appears to be exploding with growth. Traffic to the Zillow website and mobile app surged during the previous quarter, totaling a record 54.3 million monthly unique users, on average. And the number of real estate agent subscribers grew 71 percent, to nearly 39,000.

"Yelp has also shown spectacular revenue growth," Cramer added. "The international rollout has been very smart," he noted. According to the website Venturebeat, Yelp managed to achieve significant growth by integrating Qype content (from France) and traffic from Spain and Italy. The move generated a sharp uptick in business.

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Therefore, despite the sharp gains, the Mad Money host doesn't think any of these three stocks are close to topping out.

He believes money managers are so hungry for growth they will reward these stocks with even higher multiples. "Especially since they dovetail nicely into the trinity of social, mobile and cloud," Cramer explained, three trends that the Mad Money host finds highly investable.

"I know all three of these stocks have been gigantic winners," Cramer added. "But I think will continue to win."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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