Jim Cramer’s Latest Thoughts on the Magnificent Seven

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1. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) was mentioned during the episode, and here’s what Mad Money’s host had to say:

“First, alphabetically speaking, is Alphabet, less than 19 times earnings with the stock down from $207 to $167. This one seems to have the most problematic situation because it’s got a lot to lose in Google Search revenue that may not be offset by Gemini, its chatbot. I don’t know so who uses it? But Alphabet does have YouTube and YouTube’s crushing it and Google Cloud Services is kicking butt. I’m inclined to use today’s strength actually to sell the stock though, because there’s real earnings risk from Google Search.”

Alphabet (NASDAQ:GOOGL) was formed as the parent company after Google underwent a restructuring, with Google remaining primarily associated with its search engine. On Friday, during an episode of Squawk on the Street, Cramer commented:

“I do think that, you take a stock like Alphabet, there’s no good news, coming from Alphabet, so I don’t want to own Alphabet.”

While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

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