CNBC’s Mad Money host, Jim Cramer, recently spoke about Alphabet (GOOGL) stock, warning investors that now is the time to sell the stock. This week, Cramer took a look at the current status of the Magnificent Seven stocks, including GOOGL, warning of a decline. ““Everybody knows the Magnificent Seven is not so magnificent anymore… But as I said over and over again, you simply can’t count these stocks out.”
Speaking specifically about Alphabet, the company behind Google, Cramer advised caution. He says that while the stock has dropped significantly from its peak high, it still has potential, but it might take a while to see that realized. ““First, alphabetically speaking, is Alphabet, less than 19 times earnings with the stock down from $207 to $167,” the CNBC analyst said on Monday. “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.”
While he praises Google Cloud’s recent developments and performances, Cramer warns that revenue may take a hit soon. “I’m inclined to use today’s strength actually to sell the stock though, because there’s real earnings risk from Google Search,” he added. “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.”
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According to a recent report, Google’s parent company strengthened its competitive position in the cloud services market. Specifically, it purchased cloud security firm Wiz for just $32 billion. In the long run, that could prove game-changing for the company. Despite this, though, Google’s stock revenue is heading in the right direction. Total Revenue increased 13.89% since last year and increased 9.29% since last quarter (Q3 2024).
Alphabet GOOGL stock is in a precarious position. However, some experts will say that Cramer’s infamous curse of being bearish on a stock before it surges means good things for GOOGL investors. Thus, the company might in fact be in a good position to invest in ahead of potential gains thanks to the ongoing AI wave and other factors.
