Jim Cramer is calling a bottom in three popular FAANG names that have been beaten down in 2022.
What Happened: Cramer highlighted Amazon.com Inc (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:FB) and Alphabet Inc (NASDAQ:GOOG) Tuesday night on CNBC's "Mad Money."
"The bottom line is they’ve fallen so darn far that I think they’ve become metaphors for a whole host of stocks that are now ready to rally because they’ve got nowhere else to go but up," Cramer said.
Amazon is down more than 26% year-to-date after underperforming the market for almost all of 2021. Facebook's parent shares have fallen nearly 45% year-to-date and Google-parent Alphabet is sitting on more than a 20% decline.
Amazon: Many investors don't even consider Amazon a growth stock anymore, Cramer said, adding that it's often mentioned alongside other pandemic beneficiaries like Peloton Interactive Inc (NASDAQ:PTON) or Zoom Video Communications Inc (NASDAQ:ZM).
"Frankly, I think that's insane. It makes me angry," Cramer said.
Amazon has the potential to earn $82 per share in 2024, he noted, suggesting the stock should go higher as long as the company is able to fix its problems related to overstaffing and excess warehouse space.
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Meta Platforms: Cramer didn't even have to look to the future to find an attractive valuation in Meta stock. It's trading around 14 times earnings, according to data from Benzinga Pro. The stock was slammed by investors after Snap Inc (NYSE:SNAP) warned it expects to miss its previously-issued guidance.
"The stock's trading like the whole metaverse thing is just one big joke," Cramer said. "Even if you don't trust Zuckerberg's judgment, some of the smartest guys in the industry have bet big on this thing."
Alphabet: Google is somewhat protected from falling with names like Snap, Cramer said, adding that advertisers think about the two much differently.
"Google remains the best way to advertise and we all know it," Cramer said. "If you are cutting back on advertising, you're not cutting back on Google. You're cutting back on everything else."
AMZN, FB, GOOG Price Action: At press time, Amazon was up 1.86% at $2,450.94, Meta was down 0.9% at $191.90 and Google was up 0.26% at $2,286.62.
Photo: courtesy of Amazon.
