Cramer: Shares of Alphabet and Amazon can still be bought after Netflix earnings beat

KEY POINTS

• CNBC's Jim Cramer checks in on FAANG after Netflix's earnings beat to see how shares of the technology giants are holding up.
• Alphabet and Amazon's stocks look "ripe to buy" after the recent sell-off, the "Mad Money" host says.

CNBC's Jim Cramer has spotted some attractive buying opportunities in FAANG — his acronym for the stocks of Facebook, Amazon, Apple, Netflix and Google, now Alphabet — after the market's latest sell-off.

"Once again, reports of FAANG's death proved to be premature," the "Mad Money" host said Wednesday after Netflix's earnings beat. "And, amazingly, I think Alphabet and Amazon have both come down enough that they can be purchased at these very levels."

Shares of Amazon, the largest position in Cramer's charitable trust, fell last week amid widespread weakness in the technology sector and the broader market. But with the stock still far from its highs, Cramer liked the opportunity.

"You know I think Amazon's doing incredibly well," he said. "Amazon's three business — retail, web services and advertising — are doing very well and I bet the earnings will be just fine even though they're now paying workers $15 an hour."

Shares of Alphabet, parent to Google and YouTube, are so cheap after the market's drop that it's "a complete aberration," Cramer said.

With the stock trading at 23 times next year's earnings estimates, a markedly cheap price for a major tech play, the "Mad Money" host was intrigued by the potential gain to be had from Alphabet's numerous business lines.

"I don't know a soul who believes that there's any problem with the numbers beyond the lost revenue from last night's YouTube outage," he said. "Waymo, Alphabet's autonomous driving division, [is] crushing everybody."

"In short, the stock is extremely undervalued," he said. "I listened to the great Leon Cooperman, one of my old mentors at Goldman Sachs, on 'Halftime Report' [Tuesday]. His largest position is Alphabet. I'll take that endorsement any day."

As for the rest of FAANG, Cramer's favorite was Netflix, which he said is starting to resemble one of its fellow tech giants after its blowout third-quarter earnings report.

"You know what Netflix reminds me of here? Amazon. It's the Amazon of worldwide entertainment. The difference? Amazon actually has some competition coming on, courtesy of Walmart, which can afford to lose money to build up its online business," he said.

"Netflix, however, has ... no meaningful competition," he added. "It's pulled that far ahead of the pack."

He still harbored some concerns about Apple, however, warning that its stock could take a hit if China interrupts Apple product sales into its market because of China's trade spat with the United States.

As for Facebook, Cramer suggested the tides could be turning in favor of the embattled social media company even as he was "very disappointed with the management" for mishandling Facebook's privacy issues.

"The more I dig, the more I get the sense that the advertisers have not abandoned Facebook. Instagram stories is on fire, even as its expenses are growing too rapidly and the core business is growing too slowly," he said. "With the stock trading at 19 times next year's earnings, I think ... the reward outweighs the risk."

All in all, Netflix's bombastic earnings beat turned the tide for all of FAANG for the better, the "Mad Money" host said.

"When Netflix, which had been the worst-performing member of FAANG of late, manages to turn on a dime, up 5 percent, that shows you just how resilient this group is," he said. "It's resilient for a reason: because the companies behind the acronym never stop innovating."

WATCH: Cramer revisits FAANG after Netflix beat

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

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