We recently compiled a list of the Jim Cramer Discussed These 15 Stocks Recently. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOG) stands against the other stocks.
Jim Cramer opened Monday’s Mad Money episode with the observation that CEOs gathered at the NFL’s Super Bowl game weren’t just there for football. They were there to talk business, politics, and the economy. According to Cramer, their conversations revealed what’s truly shaping corporate America’s mindset right now, with the biggest one having to do with the current U.S. President:
“Nobody can figure out Donald Trump. These CEOs are baffled… They like that he’s attacking the federal bureaucracy, but they don’t understand why Elon Musk is wasting time on the small stuff.”
He also noticed that they appear more relaxed, confident and bullish under the new regime, compared to the previous one under Biden.
“There’s been a shocking amount of new business going on… CEOs no longer feel like the government is out to get them. Even Democratic donors can’t believe how disrespected they were by the Biden White House.”
He also pointed out that all CEOs think Wall Street valuations are stretched, although Cramer is still bullish.
“They almost all think the stock market’s too high, but their own stocks are too low. When I tell them the market’s actually undervalued and I like their stocks, they nod. But they think I’m a dreamer.”
Finally, of course, the big theme was around Trump’s tariffs and their impact on the markets.
“They all hate Trump’s tariff plans. These CEOs think they’re disorganized, don’t make sense, won’t raise money, and are terrible for business. They’re free traders at heart and totally baffled by Trump’s agenda.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 18. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 900 hedge funds.
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).
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
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.”
Overall GOOGL ranks 5th on our list of the stocks Jim Cramer discussed recently. While we acknowledge the potential of GOOGL as an investment, 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 GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.