Jim Cramer is Talking About These 12 Stocks

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 216

Cramer discussed how big companies like Alphabet Inc. (NASDAQ:GOOGL) remained largely unaffected by the events of the bond market and highlighted its advertising capabilities. Here’s what Mad Money’s host had to say:

“They like Google for the same reason they like Amazon and Meta, targeted ads. Referenced again and again as a place to advertise pretty much anything.”

Alphabet (NASDAQ:GOOGL) serves as the holding company established following Google’s restructuring in 2015, with Google recognized primarily for its leading search engine. The company benefits from strong network effects, as the value of its Google Search platform increases for all stakeholders, users, website publishers, and advertisers, as it expands.

According to CEO Sundar Pichai, the introduction of generative AI features has led to greater engagement and satisfaction among users, particularly those aged 18 to 24. The innovation includes AI-driven tools aimed at optimizing advertising profits and automating the creation of media content and advertising campaigns.

As a major player in the digital advertising industry, Alphabet (NASDAQ:GOOGL) sees substantial gains from its successful Google Search platform, which accounted for more than half of the company’s $84.7 billion in revenue during the second quarter. Each of the primary operating segments contributed to these strong results, but the resurgence in advertising revenue had a significant impact after a challenging period in recent years. Google advertising rose by 11% year over year, which points to a recovery in its advertising business.