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Cramer’s Plays on Constantly Connected Kids

Cramer’s advice for investors on a down day like Wednesday – with the Dow dropping 122 points, the S&P 500 slipping 12 and the Nasdaq falling 29 – hasn’t changed: Use the weakness to buy stocks related to long-term growth trends. And a Mad Money favorite right now is the mobile Internet.

This Cramer thesis received a major endorsement today, too. Namely a telling headline in The New York Times: “If Your Kids Are Awake, They're Probably Online.” The article is about a new Kaiser Family Foundation study that found that the average American between the ages of 8 and 18 “now spends practically every waking minute – except for the time in school – using a smartphone, computer, television or other electronic device.”

Five years ago, the same demographic spent 6.5 hours a day consuming digital media. Now it’s 11. Apparently a new way of life is emerging for kids these days. They are constantly connected, text messaging, Internet surfing and TV watching all at the same time. And that’s to say nothing of the growing volumes of content – music, video, data – they access on a regular basis via smartphone.

“This study opens up a whole unknown world to us as investors,” Cramer said. “Adults who invest have no idea of the size of the tsunami that's about to wash over them, but the kids do.”

To play the trend, Cramer recommended favorites like Apple and Google , but also gave the nod to Electronic Arts for its exposure to online social gaming. Then there’s Akamai Technologies for video streaming and Amazon.com for its Kindle e-reader.

But those are just the sexier names. Behind the scenes are the companies that make the mobile Internet happen: networking-equipment names Cisco Systems and the more speculative Ciena ; component plays Qualcomm , Skyworks Solutions , Xilinx , ON Semiconductor and SanDisk ; and, of course, the cell-phone tower stocks, such as American Tower , Crown Castle International and SBA Communications .

Consider these stocks a shopping list, Cramer said, and use further declines as your chance to buy them. Because the mobile Internet is here to stay, especially with the gadget generation becoming more and more addicted to technology.

Cramer’s charitable trust owns Apple, Cisco Systems and Qualcomm.

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