Fast Internet, cloud stocks look good
Names like F5 and Salesforce.com are on a tear, and you could buy them at a discount as China's inflation plan slows the market.
But that didn't happen.
It is too bad because we were building up a legitimate head of steam. Now we could be back in macro-land unless the dollar stays down and oil goes higher, as the drumbeat is already on for Portugal now that Ireland looks "solved."
For a moment, though, let's bask in some things that have occurred, micro-wise, that do matter.
Last night, Salesforce.com (CRM) just crushed the expectations and gave an outlook for next year that I think implies perhaps 30% growth. And that's before we get the new products to be announced in two weeks that I am told could be breathtaking.
This is a company that is putting on ARG -- accelerated revenue growth -- that only Apple (AAPL) can match. How many companies do you follow that, after six unbelievably great quarters, then put up a seventh with faster growth than the past six? How many companies do you follow that have a division -- in this case the Chatter division -- that could be the corporate Facebook but isn't even reflected at all in the valuation?
That's why people pay 70 times earnings for this, the highest multiple stock I follow, because it is a market-capitalization play. There is no way that this company should be only a $15 billion company -- one-tenth of Oracle (ORCL) -- when its market opportunity and share possibilities are accelerating.
The fact is that in the past 24 hours we heard confirmatory comments from tech companies in the fast Internet -- F5 (FFIV) -- storage -- NetApp (NTAP) -- and cloud (CRM) segments that indicate things are terrific. Sure, we didn't hear anything that special in the mobile-phone arena that should make us think there is anything wrong or right there, but you can't have it all in one day!
So, when we get the macro sell-off that is the delayed China rate rise and we begin to see oil roll over or the dollar go higher -- as counterintuitive as that is with Ben Bernanke defending his position all over the place -- remember that the cloud, storage and fast Internet are very much alive, breathing and, for that matter, in some ways, accelerating. And all at a discount, courtesy the Peoples Republic of China.
At the time of publication, Cramer was long Apple and Oracle.
Follow Cramer's trades for his Charitable Trust.
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