The Four Horsemen of Tech: Part 2
Google, Amazon, Apple and Research in Motion. These are four horsemen of tech that can’t be stopped, Cramer says. And even though he has long advised against owning tech until the end of the summer, none of these companies can really be defined as merely “tech” names anymore. You can own them when other tech is untouchable. Why? Because they’re all posied to grow, and that’s what Wall Street looks for.
Google is a media company, a communications company and a tech company all rolled into one. It owns internet search and it absolutely dominates its competitors. And even though it hit an all-time high yesterday, Cramer thinks GOOG is still cheap. The stock could go to at least $600, Cramer says, and that’s a conservative price target.
Then there’s Amazon , which is another chameleon. Amazon is a tech company as well as the pre-eminent retailer, and it has a Chinese business plan that’s the real deal, Cramer says. Amazon has 60 million active customers yet it still manages 15% year-over-year growth in that category and, in the first quarter, a 14% increase in sales per customer. The fact that a fifth of Amazon stock is short is simply unjustifiable, Cramer says. He thinks this one is going back up to $100.
Apple is a little more complex, but equally compelling. Cramer doesn’t doubt the iPhone is going to sell out, but the hype has gotten so great that it’s going to be tough to beat, he says. He recommends selling some of the stock right before the iPhone launches because there’s likely to be a sell-off right after. And that’s when you buy the stock back.