Cramer: Forget Fed, Buy Smartphone Stocks
While Wall Street reacted to the Federal Reserve’s latest statement about interest rates and the economy, Cramer urged investors to focus on something not tethered to a US recovery: the mobile Internet.
“This trend is bigger than the Fed,” the Mad Money host said, “because it’s not domestic.”
There is speculation that China Unicom ordered 5 million Apple iPhones, Cramer said. The order, which is close to the total units sold here in the States last quarter, is related to China’s $40 billion wireless infrastructure build-out.
Right now Apple controls just 3% of the overall phone market, Cramer said, but is nearing a 40% share in smartphones. The adoption of these do-it-all gadgets is a game-changing trend similar to the advent of the PC, and he expects multiyear gains from the related stocks.
“This is a very big move,” Cramer said.
Beyond the most obvious players, such as Apple and Research in Motion , chip and equipment makers will also benefit. That includes names like Cypress Semi , Cree , Skyworks Solutions , Xilinx and others. (Read more about the Mad Money Mobile Internet Index.)
Elsewhere in the market, Cramer credited the move in United Technologies to the company’s heating, ventilation and air-conditioning unit, which is “on fire,” he said. Many people think of UTX as an aerospace business, but a number of stock upgrades have been issued because of the HVAC division’s success.
And lastly, Cramer reiterated his $70 price target for Wynn Resorts , citing a strong balance sheet and a good business in Macau.
Cramer's charitable trust owns China Unicom.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the Mad Money website? email@example.com