Cramer is back on the Meta bandwagon but off the Google bandwagon.
But it seems he is completely off the Alphabet (GOOGL) – Get Free Report bandwagon following the Google parent company’s quarterly report. Cramer didn’t mince words about the company or its trajectory.
“This call was a total dodge. It’s a broken model. It was a confusing quarter. And I really am worried about the Justice Department. And I think this was the true disappointment of the evening,” Cramer said of Alphabet’s print.
While ad spend is a big issue at Alphabet, it isn’t the main thing Cramer is worried about. The Department of Justice and its latest investigation into the company is what is really keeping Cramer up at night.
“I think it’s too risky. I think that when I heard AI, if it’s like the Justice Department’s brief against them, then they are going to use AI against their advertisers,” Cramer said before directing his viewers to buy Nvidia (NVDA) – Get Free Report.
Alphabet’s Shaky Quarter
Alphabet shares were down Friday after the ad-focused tech group posted softer-than-expected fourth quarter sales, amid an ongoing pullback in marketing spending from clients around that world, and said its recent round of job cuts would produce a multi-billion hit to current quarter earnings.
Google said revenues from YouTube, its signature non-search platform, fell 7.7% to around $7.96 billion over the three months ending in December, while overall ad sales were down 3.6% to $59.04 billion. Group revenues came in 1% higher at just over $76 billion, around $620 million shy of the Street consensus forecast.
Google’s bottom line came in at $13.62 billion, or $1.05 per share over the three months ending in December, a tally that also missed Street forecasts of around $1.20 per share and fell sharply from last year’s split-adjusted figure of $20.64 billion, or $1.53 per share.