Jim Cramer Recently Talked About These 12 Companies

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1. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

When a caller highlighted Alphabet Inc.’s (NASDAQ:GOOGL) recent acquisition in cyberspace, Cramer replied:

“Yeah, you know, I gotta tell you, the more I look at it, the more I am concerned that they bought the Wiz…. And I’m concerned. Why am I concerned? Because I stopped going to Google. I can’t be alone. There’s just other places to go to.”

Alphabet (NASDAQ:GOOGL) provides a wide range of products and services, including advertising, cloud-based tools, AI infrastructure, devices, and digital content. It also offers platforms for communication, collaboration, and data services, as well as healthcare-related and internet services. Oakmark Equity and Income Fund stated the following regarding the company 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.”

While we acknowledge the potential of Alphabet Inc. (NASDAQ: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 time frame. 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 Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

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