Jim Cramer Discussed These 15 Stocks Recently

5. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 412

Cramer didn’t mince words when asked about Alphabet’s (NASDAQ:GOOG) $75 billion capital expenditure and competitive positioning:

“People in my club know I’ve been selling it down, selling it down, and selling it down. Would it be the first one I leave from the Magnificent Seven? Yeah, probably. It still sells for only 20 times earnings, but they really need to rethink their game plan. Gemini is competing with Google Search, the ads are endless, and they don’t know how to monitor YouTube. If they’d put me in charge, I’d clean that thing up and get it to $250, then see you later.”

Alphabet, the parent company of Google, remains a dominant force in digital advertising and AI, but Cramer’s frustration highlights concerns about its current strategic focus and operational efficiency.

While he acknowledged Alphabet’s valuation as reasonable, Cramer’s tone suggested he’s no longer as bullish on the stock compared to other tech giants.

Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”