Move over FANG, Jim Cramer has officially crowned FAAA as the new acronym for red-hot growth plays in the market.
"We have to talk about how these FAAA stocks got their groove back in order to figure out what it means for them going forward as we head into the fourth quarter," the "Mad Money" host said.
On Tuesday, JPMorgan raised its 2017 year-end price targets for FANG stocks, noting that investors have returned to the group in search of growth. While many investors may question why they should care about 2017 year-end targets when it's not even the end of 2016 yet, Cramer clarified why it's important for those seeking growth.
"Real growth investors don't particularly care about this year's numbers because classic high-growth stocks always look expensive on the near-term estimates. But if things go right, they will turn out to be very cheap once we get to the out-years," Cramer said.
With the exception of Alphabet's rumored interest in acquiring Twitter, FAAA to Cramer represents the complete package. Some investors speculated that it was an act of desperation for Alphabet, but Cramer disagreed.
"If you're looking at Twitter as it is now, a funny place to tweet and try to sound clever, then you're right, it's too expensive already at $23," Cramer said, "But if you look at Twitter as the ultimate customer retention weapon and predictor of consumer behavior, it might actually be cheap to some of these suitors even half a dozen points higher."
Facebook already knows more about its customers than any other website, but if Twitter cleaned its act up, Cramer thinks it could be a reasonable stand-in.