We recently published a list of Jim Cramer’s Top 11 Trump Trades: Winners and Losers. Since Alphabet Inc (NASDAQ:GOOG) ranks 2nd on the list, it deserves a deeper look.
Jim Cramer in a latest program talked about the consequences of the failed assassination attempt on Donald Trump and mentioned a few stocks that could benefit if the former President comes to power again.
“You are sticking your head in the sand if you think nothing has changed after the failed assassination attempt on the now-official Republican nominee for President.”
Cramer said that the “frightening moments” of the assassination attempt have indeed “cut in the favor” of Trump’s win and he was “already leading in the polls.”
Cramer recalled the days when he was the anchor of Kudlow & Cramer show and Biden was a senator from Delaware. Cramer said Biden once told him that he was the “poorest senator out of one hundred because he owned no stocks.”
“He was actually bragging about it,” Cramer said.
Cramer said that Joe Biden is not the “champion” of stocks and he’s “on board with labor.”
Jim Cramer’s Thoughts on Donald Trump
Here’s what Cramer said about Trump:
“In the many years I’ve known Trump and I have known him fairly well, he’s been wildely pro stock market, always watching it like a hawk. He loves bantering about the stock market.”
Cramer said that even though Trump was in “real estate, he enjoyed stocks.”
Jim Cramer added that Trump always thought there was too much regulation and was also “wildly” pro-oil and gas. The CNBC host said since Trump cannot see the stock market going down and sees the market gains as a positive factor even for his presidency, his arrival in the White House could boost stock portfolios.
“Hate him or like him, he’s good for your portfolio.”
For this article watched the latest programs of Cramer where he mentioned stocks that could benefit from a Trump presidency. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Alphabet Inc Class C (NASDAQ:GOOG)
Number of Hedge Fund Investors: 165
Cramer thinks Alphabet Inc Class C (NASDAQ:GOOG) is one of the big tech stocks that can get relief from regulators if Trump comes to power.
Deepwater’s Gene Munster thinks that Alphabet Inc Class C (NASDAQ:GOOG) is going to win the “AI arms race.” While talking to CNBC, the analyst said that Google search business is “intact, no need to worry.” Munster’s thesis is based on his in-depth testing of several large language models and chatbots including Google’s Gemini. Munster also thinks other chatbots do not offer a strong imperative for users to switch from Google search as of yet.
Wedbush’s Dan Ives in a fresh note named Alphabet Inc (NASDAQ:GOOG) as one of the stocks that can benefit from the AI boom.
According to a latest UBS report, Alphabet Inc (NASDAQ:GOOG) falls in all three layers of the AI value chain – enabling, intelligence and application layer. Alphabet Inc (NASDAQ:GOOG) is an AI enabling player because of its Tensor Processing Units (TPUs) and Google Cloud Platform, while Gemini makes it a key player in the intelligence layer. On the application layer, UBS believes Alphabet Inc (NASDAQ:GOOG) has an edge with its Duet AI assistant and advertising. All these catalysts make Alphabet Inc (NASDAQ:GOOG) a company that could benefit from the $1.2 trillion AI opportunity by 2027, UBS said.
Alphabet Inc. (NASDAQ:GOOG) bulls believe the company is just getting started with AI product launches. Alphabet Inc. (NASDAQ:GOOG) is indeed in a strong position to develop an AI ecosystem around its products. For example, demos have shown that Gemini app will help people perform daily personal tasks like note-taking, appointments, writing, etc. These features could easily be integrate with other Google apps. Alphabet Inc.’s (NASDAQ:GOOG) app urges users to sign up for ‘Google One AI Premium’ plan, which has a $19.99 price tag. Google saw advertising revenue accelerate in Q1 2024, boosted by YouTube in particular growing by almost 21% last quarter. Analysts also believe Alphabet Inc. (NASDAQ:GOOG) is in a strong position to offset any headwinds or lost market share in Google search with YouTube, which saw its ads revenue reach $8.1 billion in the first quarter, a 21% growth. Alphabet Inc.’s (NASDAQ:GOOG) net income in the period came in at $23.66 billion, up 57%, or $1.89 per share.
Polen Focus Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:
“The top absolute contributors were Alphabet Inc. (NASDAQ:GOOG), Microsoft, and Amazon. Turning briefly to positions we do own, Alphabet represented our top absolute contributor. The stock responded positively to attractive across-the-board results that beat expectations, with excitement around GenAI driving growth in its cloud business. Additionally, the company introduced a dividend and announced an additional $70B share buyback, beginning to show prudent capital allocation discipline in our view.”
Overall, Alphabet Inc (NASDAQ:GOOG) ranks 2nd on Insider Monkey’s list titled Jim Cramer’s Top 11 Trump Trades: Winners and Losers. While we acknowledge the potential of Alphabet Inc (NASDAQ:GOOG), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
