We recently published a list of Jim Cramer Discusses These 11 Stocks & President Trump’s Sovereign Wealth Fund. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against stocks that Jim Cramer discusses with insights on President Trump’s Sovereign Wealth Fund.
In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer discussed President Trump’s tariffs on Mexico and their impact on the car industry. Large US car manufacturers, particularly the firm that makes the F-150 truck, have their manufacturing plants based in Mexico. As a result, they can face significant disruption if import costs from the country increase in the aftermath of tariffs.
However, while American car manufacturers are dependent on Mexico, Cramer pointed out that Japanese and South Korean car companies depend on their respective countries for imports. Since neither country has been targeted by tariffs, he wondered whether they could be next.
Another one of Trump’s remarks that caught the CNBC TV host’s attention was his demand that the Federal Reserve lower interest rates. The President has preferred low interest rates for quite some time, and his remarks in January that stressed that he would call on central banks worldwide to lower rates weakened the US dollar. Commenting on Trump’s statements, Cramer wondered “is this discord or is it just a recognition that’s just not the way to go.” He added, “I think the Treasury Secretary has won the President over in terms of the notion of, listen I’ve got it under control, let me handle it, you don’t need to yell at the Fed.”
Cramer believes that simply demanding that the Federal Reserve lower interest rates might not yield any results. Referring to co-host David Faber, he shared “David, yelling at the Fed, yelling at Jerome Powell, sucker’s game. Doesn’t get you anywhere.” Cramer believes “The President doesn’t want to get in a sucker’s game where he yells at the guy, and the guy then says look I really don’t care what this President says. Because he doesn’t like. . . . He likes fealty.”
Another government official Cramer mentioned was Commerce Secretary Scott Bessent. In his previous shows, Cramer has praised Bessent and shared that he has heard good things about the Secretary. He maintained the positivity and shared:
“This guy [Secretary Bessent] he’s making a lot of sense I don’t know how he’s going to [get] the oil up . . .three million barrels. But I would say that he’s a supreme intellect, and people who know him or read about him are kind of saying, wow, this guy’s a stand up, take notice. . . he’s a great practitioner of the game.”
Cramer also wondered how the President would “pay for the sovereign wealth fund without that fifty-year bond?” The President recently signed an executive order to create a US Sovereign Wealth Fund. When Faber pointed out that it was pointless for America to create such a fund, Cramer replied “Well the President says he wants a sovereign wealth fund. He doesn’t say these things idly, he’s thought them through.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on February 6th.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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).
Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders In Q3 2024: 202
Alphabet Inc. (NASDAQ:GOOGL)’s shares haven’t delivered fireworks similar to some other mega-cap stocks such as Facebook’s parent Meta. Throughout 2024, the firm struggled with a Justice Department investigation that sought to break up the company. The only saving grace for Alphabet Inc. (NASDAQ:GOOGL)’s shares came in December when they surged by 11% after the firm announced its Willow quantum computing chip. Alphabet Inc. (NASDAQ:GOOGL)’s stock slipped by 7% in February after weak results of its cloud business. Here’s what Cramer said about the business division:
“And when you saw that Google actually went down on the spend, you started to say, well hold it, Meta was great for the spend, we were thinking Microsoft may be okay, because that went down because of some other things.”
“. . .people also said, value trap. Now can I just say that Google Cloud [laughs] was not that bad. But we seized on that as a reason. We’ve seen this way too often. Google Cloud, we’ll see a division not be perfect, and we’ll say aha! That’s why it’s going down. Because that division is, it doesn’t come on air and say hey listen, you know what, you guys are wrong. I think that Google Cloud probably had a lot of good things in it and we just didn’t talk about it. It’s been a juggernaut.”
Overall, GOOGL ranks 2nd on our list of stocks that Jim Cramer discusses with insights on President Trump’s Sovereign Wealth Fund. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some 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.
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Disclosure: None. This article is originally published at Insider Monkey.