10 Jim Cramer Stocks to Watch Amid Trump Tariff Wars

3. Alphabet Inc (NASDAQ:GOOG)

Number of Hedge Fund Investors: 160

Jim Cramer in a latest program reiterated his concerns about Alphabet Inc (NASDAQ:GOOG) and said that he’s not using Google anymore because of other AI search tools:

“I’ve left Google. Now, I didn’t leave it at the right price, I know that, but I left it because I don’t use Google other than for the most simple historical stuff, because there are other ones that I wouldn’t go to. I won’t go to Grok to find out whether Hoover was president. I’ll still use Google for that, but I just find myself using so many other things, and I know I can’t be alone, and that’s what I worry about. I know YouTube’s doing well, though.”

Alphabet posted strong quarterly results but the market remains reluctant about the stock amid threats to its search business due to the onslaught of AI tools like ChatGPT. However, GOOG bulls believe these concerns are overstated.

Google has an edge over competitors because it’s easier for the billions of users of its search engine to switch to Gemini instead of opting for a completely new model. Google has over 1.5 billion monthly users interacting with its AI-powered Search overviews. OpenAI, Alphabet’s biggest competitor now when it comes to AI search, has less than 5% of its users paying, and its business model is still developing.  Google’s first-quarter results showed continued strength in its cloud unit, with revenue up 28% year over year and solid operating income growth. This supports Google’s broader AI strategy and underscores the scale advantages of its cloud business.

Wedgewood Partners stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) also detracted from performance during the quarter, despite of +13% growth in its core search business and over +20% growth in segment income for Google Services. The Company’s search results are beginning to beneit from the addition of “GenAI” (generative arti icial intelligence) responses being added, which monetize at a nearly similar rate as traditional search results do. Alphabet’s Google subsidiary serves billions of users per day, so it is no mean feat to be able to offer GenAI to users free of charge. Google has long been at the forefront of AI hardware and software R&D, irst rolling out its Tensor Processing Units (TPU) to run machine-learning operations across massive datasets almost a decade ago. The Company should be able to continue to drive growth thanks to these large long-term investments in AI and other technical software and infrastructure.”