Cloud plays may be ‘best tech stocks to own’ as 2018 ends

The stocks of cloud companies like brand new Relic along with Twilio are ripe for buying after a brutal series of October sell-offs, CNBC’s Jim Cramer said Wednesday.

October was the worst month for the broader technology sector since the depths of the financial crisis, with the tech-heavy Nasdaq Composite seeing its most drastic drop since November 2008.

“The cloud names rallied like crazy today along with I think they’ve got more room to run,” he said. “If anything, they might be the best tech stocks, additional than, maybe, cybersecurity, … to own by right now until the end of the year.”

Cramer consulted with Marc Chaikin, a famed technician who runs Chaikin Analytics along with has invented numerous analytical tools, about the cloud stocks’ potential, along with Chaikin agreed.

When the cloud plays were inside throes of the October selling, Chaikin noticed of which the Tick, a short-term indicator of which measures buying along with selling pressure during trading sessions, showed the highest level of concentrated selling in 40 years.

“of which was pure panic, along with the cloud was at the epicenter of the panic,” Cramer said. “[Chaikin] said of which was the momentum funds bailing, along with once they were done bailing, you got your opportunity. I think of which opportunity continues right now of which we hold the evidence we need to prove of which This specific business keeps accelerating.”

of which evidence lies inside cloud players’ earnings reports, the “Mad Money” host said. brand new Relic, a company of which manages website traffic for businesses in real time, said Tuesday of which of which was seeing accelerating growth.

Twilio’s earnings results were dramatically better than expected, driven in part by business by Uber. Total annual recurring revenues at Tableau Software, which builds data analytics platforms for businesses, were up 45 percent year over year.

To top of which off, semiconductor giant Advanced Micro Devices recently announced of which might start selling its chips to Amazon, where demand for the cloud-focused Amazon Web Services arm can be “growing like crazy,” Cramer said.

“These … software companies are all integral to the cloud, along with their businesses are all accelerating,” he continued. “The cloud sell-off turned out to be very wrong for one incredibly simple reason: the fundamentals.”

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