Jim Cramer Says 'Better Than Feared' Is The Name Of The Game: Will Amazon And Apple Pass The Test?

Alphabet Inc. GOOG and Microsoft Corp. MSFT shares are trading higher Wednesday despite reporting numbers that came in below analyst estimates.

With Amazon.com Inc. AMZN and Apple Inc. AAPL set to report this week, Jim Cramer believes a theme is starting to take shape around earnings season.

"Better than feared is working," Cramer said Wednesday on CNBC's "Squawk On The Street."

What To Know: Alphabet traded lower with Snap Inc. SNAP last week after the company reported worse-than-expected results and held back guidance, citing uncertainties related to the operating environment.

Snap's results cast doubt on the earnings season.

However, despite missing on the top and bottom line, Alphabet shares jumped on the report as the company's results were better than feared. Microsoft stock took a bit longer to find its footing, but after falling on its earnings release, Microsoft shares surged following strong guidance on the conference call. 

See Also: Google Parent Alphabet's Search Outperformance, YouTube Shorts Momentum, AI-Focus: Munster's Analysis Of Q2 Results

Why It Matters: Cramer sees a trend beginning to form.

"I think that Amazon could actually be similar to what we see [with Alphabet and Microsoft]. I actually think that Apple could be similar to what we see," Cramer said.

A lot of people are concerned that Amazon has lost its edge, but Cramer isn't convinced.

"We've come down enough that if we hear anything that's better than feared, we bounce," Cramer said.

However, if results are worse than feared, the pair of mega caps can still get crushed, Cramer said: "But better than feared is working."

Amazon and Apple are set to report second-quarter results after the market close on Thursday. Amazon is expected to earn 14 cents per share on quarterly revenue of $119.12 billion, according to data from Benzinga Pro. Analysts expect Apple to report quarterly earnings of $1.16 per share on revenue of $82.6 billion.

AMZN, AAPL Price Action: At press time, Amazon was up 4.34% at $119.80 and Apple was up 1.61% at $154.04.

Photos: courtesy of Amazon & Apple.