Scott Mlyn | CNBC
CNBC’s Jim Cramer, who popularized the acronym FAANG, said on Thursday that it’s time to take out Netflix and replace it with Microsoft.
“We gotta get Netflix the hell out of FAANG,” Cramer said in an appearance on “Squawk on the Street.” “I tell you that right now. I don’t know how to do it.”
In the past year, Microsoft shares have jumped 18%, while Netflix has fallen 29%. Microsoft is the most valuable publicly-traded company, with a market cap of over $1 trillion, making it more than eight times bigger than Netflix.
FAANG, coined in 2013, originally didn’t include Apple and was intended as a nickname for high-growth internet companies. The following year, Satya Nadella became Microsoft’s CEO and sparked a massive turnaround at the software maker.
“At that point we didn’t know how great Satya was going to be,” Cramer said. “It was pre-Satya. I came up with it pre-Satya.”
Thus, the group should now be called FAAM, he suggested.
Cramer said earlier this week on “Mad Money” that he had soured of Netflix.
See the video below for Cramer’s comments on removing Netflix from FAANG.
Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.
Correction: A previous version of this story had the incorrect percentage gain for Microsoft shares.