Jim Cramer is Talking About These 7 Stocks

3. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 216

During last Wednesday’s Mad Money episode, Cramer acknowledged that he did not have many expectations from Alphabet Inc. (NASDAQ:GOOGL) previously but highlighted that its recent quarterly earnings report reminded him of the “old Google”.

“Alphabet defines the happy beat and raise. This stock had been the laggard in the Mag 7. Nobody expected much from it at all, I didn’t. I mean we own it for the trust, but I didn’t. The company has a really bad habit of giving you a muddled message even when it’s doing well.

So it routinely sells off on earnings. Last night though, we got a quarter that was like the old, no, it wasn’t like Alphabet, it was like the old Google when it was still called Google. Search was fabulous. YouTube was great. Google Cloud, they didn’t have that then, it’s on fire. Five years and look at that thing. The stock shot up almost 3% today in response and I bet it can keep running for days and days. Yes, it was that much better than expected. Yes, it is that inexpensive, and Alphabet where everything’s working is worth a lot more than Alphabet where only part of it’s working here. You can quote me on that.”

Alphabet (NASDAQ:GOOGL) provides a wide range of products and services through its segments, including advertising, cloud services, communication tools, and various platforms like YouTube and Google Play, catering to both consumer and enterprise needs. As per Statcounter Global Stats, Google Search holds the primary position among search engines as its market share is 89.33%.

In the third quarter, Alphabet’s (NASDAQ:GOOGL) Google Cloud achieved significant revenue growth of 35%, reaching $11.4 billion. The company noted that customers are increasingly adopting its AI platform for building and customizing models, with the Gemini model gaining notable popularity. Management highlighted the success of its data platform BigQuery, alongside AI-driven cybersecurity solutions like Google Threat Intelligence and Security Operations, which have expanded the company’s application portfolio.

In addition to cloud services, Google Search has also shown strong performance, with revenue rising over 12% to more than $49 billion. The company noted particular strength among financial services providers, including insurance companies, and retailers. AI capabilities are helping the company gain deeper insights into user behavior, allowing for better connections between users and advertisers.

Meanwhile, YouTube has achieved significant milestones, with total ad and subscription revenues exceeding $50 billion over the past four quarters for the first time, driven by offerings such as YouTube TV, NFL Sunday Ticket, and YouTube Music Premium.