As stocks bounced back on the news of Hillary Clinton's email clearance on Monday, Jim Cramer watched as investors crowded back into the trusted FANG stocks.
"In my 35 years of picking stocks, I have always found this phenomenon to be the case: the favorite growth stocks stay favorites until they stop growing," the "Mad Money" host said.
Two of the four FANG names issued guidance that investors found disappointing when they reported. One surprised Wall Street with decent earnings and OK revenue growth, but no forecast boost. The final name simply did what was expected.
Yet, all four were the first stocks investors reached for on Monday.
Facebook reported a stunning quarter last week, driven by a 59 percent increase an advertising spending. Revenues and earnings were also sharply higher. However, the stock fell sharply after Facebook confirmed it would spend substantially to improve video and next-generation technology.
"I think people forgot why they sold it, so they come rushing back," Cramer said.
Amazon was a similar story, with strong revenue growth. The stock plummeted on news that the company would spend to conquer India. Cramer noted that the stock has been quietly coming back, as investors were surprised that such a large company could grow as such a fast pace.
Netflix on the other hand, got a ton of credit for saying it would spend more than people thought. For some reason Netflix was allowed to spend and have its stock climb, while Facebook got clobbered. However, it was also the most damaged stock of the FANG stocks going into the year, so it had further to catch up.
Alphabet beat estimates, but the company reported just as the presidential race began to tighten. As a result, its stock rallied a bit, and then went down. Cramer categorized it as a stock that should never have gone down, as it businesses are very strong.
"The market's ability to forgive and forget is legion," Cramer said.