Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks in Jim Cramer’s spotlight. During the episode, Cramer discussed his thought process behind the sale of the company stock for his Charitable Trust, as he remarked:
“What do you do when you sold a stock that, in retrospect, you think you should have held on to? That’s one of the things I’ve been beating myself up around in front of club members who came in today. I’m remonstrating about the Charitable Trust sale of Alphabet, a longstanding position and a very big win that we sold. Why did I sell it? Well, first I can tell you that my idea for selling, it was a bad one. I made a mistake… It’s centered on a big win by the Justice Department against Alphabet, where a federal judge deemed the company a monopolist. Why was that a mistake?… Well, because the legal remedy for a company that’s a monopolist is simple.
The court will most likely break up the business if it gets its way. But if you believe that Alphabet’s parts are worth more than the whole, that’s not a problem. You’ll get Google Search, the Android operating system used by 3.5 billion people, YouTube, the most watched streaming platform in the world, Gemini, that’s its new AI system, and Waymo, its self-driving car business that I like very much. Now, initially, I had some seller’s remorse because the stock went straight up without me, as others weren’t as grim as I was about the monopolist charge…
Right now, Tesla’s valued at about a trillion dollars. I think that roughly half of that might be because people are betting on their self-driving technology. Waymo is well ahead of Tesla right now in terms of regulatory approval. So who knows what Alphabet might be worth if the government moves to break up the company. Plus, if we discover that Google can regain its status as an important place to look things up, then that $2 trillion market cap, it could be way too small. In other words, it’s time to get back into Alphabet.
But where? When I want to get back into a stock that I’ve already sold, I don’t try to outthink it. I don’t want to look at where I bought it before. I don’t want to be a prisoner of where I sold it, but I also just don’t want to go in there and just buy it because I say, oh darn, I gotta get in this one. We’re now nowhere near the time where the court-ordered breakup might occur. Nevertheless, what matters isn’t that I sold Alphabet. What matters is where I think it is going. And ultimately, the answer is up.”
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet (NASDAQ:GOOGL) provides a wide range of digital products and services, including Search, YouTube, Android, and Google Cloud, along with enterprise tools and AI solutions.
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Disclosure: None. This article is originally published at Insider Monkey.
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