Cramer gets bullish on Snap after latest quarter, compares stock to Facebook's early days

  • "Mad Money" host Jim Cramer grows more bullish on the stock of Snap.
  • Cramer likens the social media company's latest quarter to the early days of competitor Facebook.
  • Cramer also recommends that investors look for "obvious" bargains in this wild market.

Since Snap's rocky initial public offering and subsequent declines, CNBC's Jim Cramer has been hesitant to recommend the stock of the social media giant to investors.

"Yes, I justifiably warned you away from this practically from the moment it came public," the "Mad Money" host said. "Of course I did. I mean, it was losing oodles of money with botched plans and little to show for it."

But after the Snapchat parent delivered a top- and bottom-line earnings beat on Tuesday, sending shares up more than 40 percent early on Wednesday, Cramer felt he had to reconsider.

With a pickup in user growth, longer advertisement viewing times, a broadening reach and a mission to cut costs, Snap's fourth quarter managed to turn the tide, the "Mad Money" host said.

"Sure, I was a skeptic, but after this quarter, I'm now a believer," Cramer said. "In many ways, Snap reminds me of where Facebook was years ago when the company finally figured out how to address its mobile problem. So even though the stock skyrocketed up an astounding 47 percent today, it's got a lot of run room and it is a natural to be bought."

"There simply aren't enough investable social media plays around," he added. "The once-scorned Snap is now legitimate."

Cramer argued that amid a week of wild trading on Wall Street, stocks like Snap are emerging as obvious bargains.

"The same wild swings that have crushed the averages allow you to buy individual stocks at absurdly cheap prices if you're simply waiting for them to come in," he said. "There are too many bargains being created by the new nonsense to ignore, which is why I say that the disease of volatility will spawn its own cure."

The "Mad Money" host called attention to the stock of The Walt Disney Company, which also delivered an earnings beat on Tuesday driven by strong theme park attendance, a hit-filled movie slate and a new strategy for distributing ESPN online.

"Most important, you can personalize what you want, which is incredibly important to the younger generation. I can't wait for the service," Cramer said. "Disney's merging with Fox, a deal I love, made even more amorous by a strong Fox earnings report after the close this very night, but in the interim, ... Disney's buying it back its own stock hand over fist."

So as investors decide whether to stay in or hop out of the increasingly difficult-to-predict stock market, Cramer used a line from Pearl Jam's "Yellow Ledbetter" to suggest a strategy.

"Don't be the bag; be the boxer," the "Mad Money" host said. "Take this volatility by the horns and harness it to pick off the stocks of high-quality companies that are cheaper than they deserve to be because of the nuttiness. And be ready for the next downdraft. ... The longer -term problems of higher interest rates and the possible re-emergence of inflation will make things tougher. But you can get tougher yourself, as long as you know that you're doing the punching and bagging the best merchandise you can get."

Watch: Cramer's top 3 reasons for market volatility

Disclosure: Cramer's charitable trust owns shares of Facebook.

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