Jim Cramer, a CNBC contributor, has expressed his satisfaction with Google-parent Alphabet’s recent quarterly performance. He lauded the company’s demonstration of profitability and emphasized the trust he places in the CNBC Investing Club’s Charitable Trust’s ownership of Alphabet stock. Cramer stated his willingness to purchase additional shares if the stock price declines.
Cramer’s initial concerns regarding the potential impact of generative artificial intelligence on Alphabet’s core search business have been alleviated after listening to the company’s conference call. He believes AI is enhancing search capabilities, which in turn benefits advertising revenue.
Another factor contributing to Cramer’s optimism is the success of Alphabet’s cloud business, which boasts clients such as Mercedes-Benz, Cintas, and Walmart. He also expressed contentment with YouTube’s contribution to the company’s ad revenue growth.
Cramer praised Alphabet’s transparency during the conference call, particularly the management’s projection that YouTube and Cloud will generate a combined annual revenue exceeding $100 billion by the end of 2024. He attributed Alphabet’s profitability and transparency as key factors in his belief that the company’s investment in AI will yield immediate benefits.
Cramer reiterated the importance of companies investing in customer satisfaction and applauded Alphabet for prioritizing this aspect. Alphabet did not respond to a request for comment.
