Acronyms, sometimes, make life a little easier.
And it makes tracking the top stocks of a sector easier for CNBC’s Jim Cramer, who curated the so-called FANG group and on Thursday introduced a new simple name for retailers with scale — “WATCH.”
Scale is a business’ capability to grow operations and sales while maintaining costs. As Cramer put it: it’s “a company that’s big enough and powerful enough to control its own destiny.”
“A company that scales is one that survives and then thrives in even the toughest environment,” the “Mad Money” host said. “As an investor, you need recognize which businesses can scale because those are the ones that win. Like Amazon, like Microsoft, like WATCH. “
Microsoft, the computer giant that competes Amazon in the cloud industry with its Azure business, is not in the WATCH list because it is not a retailer. Amazon, the internet behemoth that has disrupted the shopping experience, however, did along with Walmart, Target, Costco and Home Depot.