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Cramer Remix: Navigating buying opportunities in tech amid a sell-off

  • "Mad Money" host Jim Cramer explains why buying shares of Alphabet in the midst of a sell-off could be a good opportunity for investors.
  • Cramer also sits down with the CEO of Six Flags after earnings.
  • In the lightning round, Cramer shares his playbook for a top pharmaceutical company.

Market sell-offs can create buying opportunities. CNBC's Jim Cramer said today's market nosedive is a chance to pick up Alphabet, the company formerly known as Google.

On Tuesday, Alphabet was down nearly 5 percent despite Monday's stellar earnings report. The earnings beat Wall Street expectations on multiple fronts. The stock immediately surged, only to turn negative hours later. On Tuesday, the stock open 1.4 percent lower. The market-wide sell-off only made matters worse.

"If you only looked at the stock, you'd think Alphabet just delivered some really ridiculous downside surprise," Cramer said on Mad Money Tuesday.

But, he said, "nothing could be further from the truth."

Market in turmoil

A Caterpillar excavator sits outside the Altorfer Cat dealership in East Peoria, Illinois.
Daniel Acker | Bloomberg | Getty Images
A Caterpillar excavator sits outside the Altorfer Cat dealership in East Peoria, Illinois.

Wall Street analysts are anticipating a red-hot earnings season. But on Tuesday, 30 stocks in the S&P 500closed more than five percent lower, many in the tech and industrial sectors.

"I can't escape the feeling that this was a bit of a self-inflicted wound," CNBC's Jim Cramer said on "Mad Money" Tuesday.

Cramer said even the best stocks can't tame investor fears in an era of uncertainty.

"We had three separate companies this morning say the wrong thing and it obliterated their stocks," he said. "Frankly, I bet every one of these execs wishes they could take back their statements, but there are no do-overs in this game."

Charts

Source: CNBC

Recent sell-offs in the market means investors should be cautious, said CNBC's Mad Money host Jim Cramer.

On Tuesday, the yield on the benchmark ten-year treasury was briefly above 3 percent. Even a healthy earnings cycle couldn't stop the market from plunging the same day.

"Given how many people on Wall Street take their cue from this stuff, I think you need to be aware of these key levels in case we breach them in either direction," Cramer said.

Six Flags

James Reid-Anderson, CEO, Six Flags
Scott Mlyn | CNBC
James Reid-Anderson, CEO, Six Flags

The company's stock is performing better than expected with eight consecutive years of growth.

"I look on us as the ultimate growth and yield stock and we're delivering over 5 percent in terms of dividend yield," said CEO Jim Reid-Anderson to Cramer.

And the numbers don't just represent theme park revenue.

"The best way to do that [is to]... keep people with us long term," said Reid-Anderson, and said growth included things like the membership program.

Lightning round

During the lightning round, Cramer gave his take on a few stocks.

Spirit Aerosystems Holdings: "No, no, I don't want you to lock in your loss. Right now the market is kind of anti the defense stocks and anti-aero, but how long can that last? This is a great company. I suggest that you just hold tight."

Bristol-Myers Squibb: "Bristol-Myers has sold off so much, so much, and yet when I'm finished with it, it sells at 16 times earnings and it only yields 3 percent. So I would tell you I don't have a catalyst to make the thing come back other than a takeover, and I don't see one coming. Maybe it surprises you."

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

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