Jim Cramer’s Bold Predictions About These 15 AI Stocks

3. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders In Q3 2024: 202

Date of Cramer’s Comments: September 4th, 2024

Performance Since Then: 18.40%

Alphabet Inc. (NASDAQ:GOOGL) is one of the poorest-performing mega-cap stocks on Wall Street. Its shares have gained a modest 18.40% since Cramer’s remarks, as they have bled nearly all gains made in December. Back then, Alphabet Inc. (NASDAQ:GOOGL)’s shares jumped by 11% after it announced its Willow quantum computing chip. However, they have shed 5% after the post-Willow peak as investors remain skeptical about the firm’s ability to generate massive profits with its Cloud business and AI. In his recent appearances, Cramer has remained upbeat about Alphabet Inc. (NASDAQ:GOOGL)’s other businesses such as YouTube. Here are his remarks from September:

“Stocks can’t stabilize until these weak shareholders sell out. History shows that significant market drops like this tend to offer great buying opportunities. On October 25th, 2023, Google dropped $180 billion, and since then, it’s come back with a 25% gain—not bad, but it’s the only stock on this list that failed to beat the S&P, which jumped 32% in that time.”

“Next week, Justice goes to court to try to stop Google. The Department claims in its brief that Google abuses its monopoly power to disadvantage website publishers and advertisers who dare to use competing ad tech products in search of higher quality or lower cost matches. According to the brief, Google uses “its dominion over digital advertising technology to funnel more transactions to its own ad tech products, where it extracts inflated fees to line its own pockets at the expense of the advertisers and publishers it purportedly serves.”

“Now, Google was recently found to be engaged in anti-competitive behavior when it paid to become the default search engine for Apple. Yeah, they got nailed for that. I get it—they paid to reach a huge audience. Microsoft could have outbid them to make Bing the default search engine, but they didn’t. However, this new case is more absurd. The Justice Department is going after Google in a business where they’re already losing market share in the open market.”