×

Cramer tackles Facebook, Apple, Amazon and Alphabet earnings as tech giants report

  • "Mad Money" host Jim Cramer analyzes earnings reports from Facebook, Apple, Amazon and Alphabet.
  • The tech giants delivered their latest quarterly results in a windfall of reports on Wednesday and Thursday.

CNBC's Jim Cramer has noticed a pattern of "downward bias" among investors in the stock market.

"I'm talking about the notion that a slowdown lurks around every corner, as people thought would be the case with Apple tonight, or that pricing is going to get worse, a fret about Alphabet, or demand is about to taper off, the whisper that drove down the stock of Amazon in [the] late afternoon," the "Mad Money" host said. "Did you know that none of these happen to be the case?"

"So many supposed experts and analysts keep giving you second-rate, or even just plain wrong, information," Cramer continued. "They're used to things going bad for so many years and they just can't shake the prejudice even when everything is, arguably, coming up roses."

So, to make sure investors got a more comprehensive look at one of the market's most hotly contested sectors, technology, Cramer dove into the earnings reports from Facebook, Alphabet, Amazon and Apple after the giants delivered their quarterly results.

Facebook

On Wednesday, Facebook reported an earnings beat, but the stock seesawed as investors balked at the company's core website revamp.

Despite the fact that the social media colossus reported a 48 percent rise in advertising and forecast a strong growth story, the narrative that it was losing total user time on its platform because of the overhaul reigned supreme.

Cramer pointed out that Facebook CEO Mark Zuckerberg had prepared Wall Street for the trade-off ahead of the report, saying that the decline in hours would come hand-in-hand with fixes to the user experience.

"A lot of these negative commentators say things like, 'The daily user trend's bad news.' But Facebook told us point-blank that it doesn't expect to see any sort of long-term slowdown in daily active user growth," Cramer said.

Moreover, the actual improvements will reduce the number of advertisements and viral content on Facebook. The company's Chief Operating Officer, Sheryl Sandberg, said on the post-earnings conference call that they could lead to "more monetization opportunities" — music to Cramer's ears.

"A better user experience does translate to more users, which translates into, guess what? More money," the "Mad Money" host explained. "The truth is, there's no immutable law of the universe that says things have to go wrong."

Apple

Cramer saw similar negativity seeping into the market narrative after Apple reported what he saw as "a phenomenal quarter."

Knowing that tech hawks were worried about its iPhone production, the company gave positive guidance on its next quarter, predicting steady demand and strong pricing.

"The bear case, once again, failed to pan out, particularly with all the money [Apple's] got and what they're going to do with it, and it was right to hold it, not trade it, at least for now," Cramer said.

Amazon

The e-commerce giant's quarter gave investors everything they could have wanted from its retail, web service and advertising lines of business, the "Mad Money" host said

"I think its stock can romp now from the $1470s, where we're going to be when we're going home tonight, to the $1500s in a short period of time. I'd be a buyer anywhere below $1500," Cramer said.

Alphabet

Alphabet delivered what was perhaps the most mixed quarter of the bunch, but Cramer still believed in the Google parent's story despite its weaker-than-expected results.

"I was a tad disappointed, but then again, it had run up so much in anticipation of a blowout quarter that there was a letdown for certain," Cramer said. "My take? Don't lose hope, don't lose sleep, it's doing well."

Final thoughts

"If you don't want to miss these moves, you need to stop assuming that the default state is for everything to be horrible," Cramer concluded. "Sometimes, I almost feel like it's my job to be upbeat. But the reality is that I am not being upbeat. I'm merely being empirical. I'm telling you the facts. This is not a glass-half-full, glass-half-empty situation. The glass, to me, is overflowing and anyone who tries to tell you different, I think, is simply being rigorous or worse, quite disingenuous."

WATCH: Cramer analyzes tech titans' earnings

Disclosure: Cramer's charitable trust owns shares of Facebook, Alphabet and Apple.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com