Cramer: Investors can't resist the lure of FANG

On a rebound day like Tuesday, Jim Cramer says investors cannot resist the lure of FANG's high-octane growth.

FANG is Cramer's acronym representing leaders of the stock market in growth, encompassing Facebook, Amazon, Netflix and Google-parent Alphabet.

"When we look back at what this moment is about, when we search for the ultimate Brexit related worry — it's a recession," the "Mad Money" host said.

While Brexit mainly affected the United Kingdom, the stock market doesn't separate one country's economy from another. Everything feels the impact because stocks trade in baskets, and those baskets are not rational.

There are only a few stocks that can stand on their own, and they are the super-growth stocks like FANG. Investors love them because they are always among the first to bounce back.

FANG (Facebook, Amazon, Netflix and Google) apps on a smartphone.
Adam Jeffery | CNBC
FANG (Facebook, Amazon, Netflix and Google) apps on a smartphone.
"That's what I love about a FANG stock, there is always someone out there willing to reiterate their buy call when the smoke clears." -Jim Cramer

Facebook's Instagram business just crossed the 500 million user mark. What Cramer found most compelling is that Instagram added its latest 100 million users faster than the 100 million.

"Any time you have accelerated revenue growth that is a home run, and growth-seeking investors can't resist," Cramer said.

Amazon issued a press release Tuesday that confirmed the strength of its Dash buttons that allow customers to order household products by simply pressing a button. But it was one line in the press release that really confirmed its rightful place in FANG.

"The Amazon Dash Button is a huge success for Trojan Brand Condoms. It literally takes being prepared and protected to a whole new level, making condom buying as easy as pushing a button."

Toilet paper, coffee, condoms, all ready to go! Cramer was impressed with the bullish statements from toy maker Hasbro and Campbell Soup as well.

As for Netflix, Stifel published a note on Tuesday where it made a case for its $143 price target on it, and noted the sizeable scale advantage over its competitors Amazon and Hulu with 81 million global subscribers.

"That's what I love about a FANG stock, there is always someone out there willing to reiterate their buy call when the smoke clears," Cramer said.

As for Alphabet, the parent company of Google, this one has become problematic for Cramer. Though his charitable trust owns the stock, it does have a large foreign earnings stream.

That is why, for Cramer, it could be time to recognize that there are two other stocks that have overtaken Google in the FANG acronym.

Cramer pointed to both Broadcom and Ulta Salon as stocks that have rebounded better.

"Be aware that the high-growth game is one that never ends. These stocks will always bounce back, but the issue is from what level," Cramer said.

However, while these stocks have growth potential, in a real recession nothing will be immune, except consumer staples that will shine in times of chaos, like Clorox and Altria.

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