Tomahawk, WI 09/16/2014 (Basicsmedia) – Alibaba is the talk of the town at the moment, with money managers going great lengths to raise capital for the upcoming IPO. CNBC’s Jim Cramer believes it is the perfect time to invest in Apple Inc. (NASDAQ:AAPL) and Facebook Inc. (NASDAQ:FB) as some investors continue to offload their stakes in the two stocks.
Apple Inc. (NASDAQ:AAPL) remains a fast growing stock especially with the release of iPhone 6. Apple has slid down in the market, despite releasing two exquisite devices; meaning it is cheap and worth every dime as a long-term investment, according to Cramer.
“Here is a company with most successful launch-able time; we learnt that this morning. A company that got pre-orders for four million iPhones since it broke all the records much more than any one thought, “said Mr. Cramer.
Apple has not enjoyed an upward movement in the market with the release of the two iPhones as it is believed to be one of the main sources of capital for Alibaba IPO for many money managers. Cramer expects Apple Inc. (NASDAQ:AAPL) to surge in the market going forward, especially if iWatch is to hit the highs in terms of sales.
Facebook Inc. (NASDAQ:FB) business remains excellent especially on its advertising segment, despite the ongoing sell-offs to raise capital for Alibaba IPO. The best entry point for Facebook according to Cramer would be at the $70 mark which the analyst expects the stock to slip to, with the ongoing frenzy about Alibaba IPO.
“I think you can get this stock may be close to $70 thanks to this wave of reckless selling. […] That’s a big bargain because Facebook business is excellent, and the current sale-off seems to be related to the fact that there are similar characteristics to Alibaba,” said Mr. Cramer.
Cramer expects Facebook Inc. (NASDAQ:FB) and Apple to rally again in the market, once Alibaba IPO frenzy cools down.