Jim Cramer Says Big Tech Is Back and Deep Dives Into These 8 Stocks

5. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Cramer briefly addressed Alphabet Inc. (NASDAQ:GOOGL) in the context of tech’s recent earnings, noting surprise that its AI product Gemini hadn’t hurt core search revenues. Although he personally no longer favors the stock, he acknowledged its resilience in the current market:

“We’ve heard already from Alphabet, which surprised people with how Chatbot Gemini didn’t cannibalize Google, even though there are concerns that Google made less money per search click and it could spiral. I don’t care for the stock anymore, but I do know it’s done better than most stocks in this market since in the last few weeks.”

Here’s what Oakmark Fund said about Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2025 investor letter:

“Alphabet was the top detractor during the quarter. The U.S.-headquartered company’s stock price declined despite having posted fourth-quarter 2024 earnings that were in line with consensus expectations. Search revenue growth remained strong, and management reiterated that the new “AI Overviews” feature is driving higher engagement with comparable monetization. The one miss during the quarter was in the Cloud segment, where revenue grew 30% year-over-year but fell slightly short of consensus expectations. We believe the shortfall was largely due to short-term capacity constraints and that the long-term growth outlook for Google Cloud remains robust. We continue to see Alphabet as a collection of great businesses that can further benefit from the company’s world class AI capabilities. With shares trading at just 15x our estimate of next year’s earnings per share, we believe the stock is meaningfully undervalued.”