Jim Cramer roots for big tech stocks, says they are buys on any negative antitrust news

The coronavirus season has greatly benefitted many tech companies, especially growth companies and Big Tech. However, some Big Tech companies have recently begun to go under pressure to break up parts of their underlying companies. CNBC’s Mad Money host Jim Cramer says investors should get ready to buy if stocks eventually dip in times to come.

“The time these Big Tech stocks get hot by some bad headlines from the House Judiciary Committee is the time you have to buy them,” Cramer said. “Regardless of who wins the White House next month, they’re not gonna roll back 40 years of antitrust.”

On Tuesday, a Democratic congressional staff report was released which demanded that the nation’s antitrust laws are updated and to check operations of the biggest technology corporations in the United States. In addition, Amazon, Apple, Google, and Facebook were charged with maintaining a monopoly of power.

These Big Tech stocks have outperformed the market since the crash in March—the wake of the coronavirus pandemic. As of Wednesday closing, Facebook stock was the only one among the Big Tech stocks that fell, dropping 0.2% to close at $258.12. Amazon rose 3% to $3,195.69.

The report’s findings were as a result of a 16-month investigation, spearheaded by the House Judiciary subcommittee on antitrust into big companies and their competitive practices. The authors of the reports said structural separations should be imposed to prevent firms from giving preferential treatment on their platforms.

While the lawmakers seek to curb some activities of Big Tech companies, Cramer speaks in support of these companies, making reference to the contributions they make to the entrepreneurial community. He says “these companies have created riches beyond belief, …”

“Apple, Amazon, Alphabet, and Facebook can credibly argue that they’re our national champions that help small businesses thrive,” Cramer said. “These companies have created riches beyond belief, both for themselves and their shareholder. I think we should let them keep doing that.”

Amazon, Alphabet, Apple, and Facebook currently dominate the e-commerce, internet, telecommunications, and social media space in the world today. The domination of their individual industries puts the U.S. at the top of the global tech list.

Cramer acknowledged that monopoly can hinder business competition and entrepreneurship, yet it is an undeniable fact that these companies play a significant role in helping small businesses reach their consumers in a less expensive way.

“There’s no doubt that these companies have gotten a lot more powerful, but that’s because they’re creating incredible things. We can’t live without them,” said Cramer. “While they’ve crushed some competitors, they’ve also created entire industries that are filled with small businesses.”