Jim Cramer isn't giving up on FAANG stocks, he said Wednesday night on CNBC's "Mad Money."
FAANG is an acronym for Facebook Inc FB, Amazon.com Inc AMZN, Apple Inc AAPL, Netflix Inc NFLX and Google parent company Alphabet Inc GOOG GOOGL.
What Happened: Many of the FAANG names and other growth stocks reported stellar earnings, but investors have been selling the good news and the stocks have continued to trend lower since reporting.
Is FAANG dead or asleep?— Jim Cramer (@jimcramer) May 5, 2021
FAANG stocks own the future, the "Mad Money" host said, adding that "when you have young smart people on your side, you are going to win."
The massive amounts of cash the FAANG companies have on hand allows each company to reinvent and continue to thrive, Cramer said.
During economic booms, the FAANG names look less enticing, but when the economy slows down, "the cyclical stocks collapse and investors flock to FAANG," he said.
The "Mad Money" host acknowledged that the stocks are out of favor, adding: "I'm telling you it's temporary."
Cramer reminded investors to look at the long-term outperformance of the FAANG stocks.
Historical Price Action: Over a 10-year period, Facebook is up 724%, Apple is up 934%, Amazon is up 1,559%, Netflix is up 1,408% and Alphabet is up 766%. During that time, the S&P 500 is up 212%.
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