Big techs such as Amazon Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ:META) and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) came under intense selling pressure amid the current market downturn.
Notwithstanding the oversold levels of these stocks, it may not be time yet to bottom fish these stocks, according to CNBC Mad Money host Jim Cramer.

What Happened? Big tech stocks may be trading well off their highs but their charts suggest it isn’t safe to invest in these stocks yet, even if those charts begin to improve slightly, Cramer said, citing views of technical analyst Carolyn Boroden.

See Also: Here's Why Amazon Stock Looks Set For A Bounce

“Amazon and Alphabet simply aren’t in buy-the-dips situations,” Cramer said.

Illustrating his point, he noted that both Amazon and Alphabet were trading below their 200- and 50-day moving averages, making a general pattern of “lower lows and lower highs.”

The five-day exponential moving average was below the 13-day EMA, which is Boroden’s “personal sell signal,” he added.

These two stocks and most other tech giants may not be able to return to bullish trading patterns that were evident in 2020 and much of 2021, but we could get some oversold rallies here, Cramer said.

Benzinga’s Take: Big techs are also facing pressure fundamentally. Alphabet’s search revenue slowed and YouTube revenue unexpectedly fell in the recent third quarter. Amazon’s ecommerce business has slackened as consumers tighten their purse strings amid an uncertain economic backdrop.

Meta's problems are manifold, with the most recent investor worry being the social media platform’s lavish investment into the still-hazy metaverse.

Apple Inc. (NASDAQ:AAPL) fared better than these companies but the COVID-19 disruptions in China — its main production base — have cast doubts regarding continued outperformance.

How the economy and monetary policy shape up in the new year have a lot of bearing on the near- to the medium-term direction of big tech stocks.

Price Action: In premarket trading on Tuesday, Amazon stock was rising 0.70% to $91.16 and Alphabet was gaining 0.43% to $88.87, according to Benzinga Pro data.

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