Jim Cramer’s Game Plan for Next Week: 25 Stocks in Focus

21. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Cramer expressed uncertainty about Alphabet Inc.’s (NASDAQ:GOOGL) Google business as he said:

“After the close, we have a very compelling night. We get results from Alphabet, and I’m not sure how the core Google business can be doing if people are starting to use ChatGPT, Grok, Claude, and even Alphabet’s own Gemini, although I use that last. There’s too much cannibalism here. At the same time, the company was just dealt a severe legal defeat in its ability to handle both sides of the advertising business. Tonight, we have on the former Justice Department lawyer who originally brought the case to help figure out what this all means.

I am sure Alphabet will tell us not to worry. They always tell us not to worry. You know, when people tell you not to worry, what do you do? Exactly. Alright, now here’s what you need to know, you can’t model the advertising gross margins in 2027 because of that lawsuit loss. So if you can’t model 2027, then you can’t model it, and now we discover why it sells at 16 times earnings, because it may be expensive.”

Alphabet (NASDAQ:GOOGL) is a parent company made up of multiple businesses, with Google being the most famous. It offers a wide variety of popular products and platforms, including Search, Ads, Chrome, Cloud, YouTube, and Android.