We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against the other stocks featured in Jim Cramer’s latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
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Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 216
Cramer called Alphabet Inc. (NASDAQ:GOOGL) a great company but expressed discontent with the stock’s performance. It will announce its third-quarter earnings on October 29.
“First, we hear from Alphabet. Now, stock’s been all over the map but rarely in a good way. Now, we’ve trimmed our position in what you know as Google for the Charitable Trust because it’s hard to trust. Too often, Alphabet fails to impress. I think it’s a great company, okay, but it’s not a great stock because management often seems indifferent to the things that investors and analysts want to hear.
They really need to talk also about breaking out Waymo somehow. They’ve lost a ton of money… They don’t have enough cars on the road and that has to change in order for them to show that they are not niche, which is pretty much how Elon Musk described them in his Tesla conference call.”
Alphabet (NASDAQ:GOOGL) is advancing in autonomous vehicle technology through its subsidiary, Waymo. Waymo operates a fleet of approximately 700 self-driving cars that regularly transport passengers in cities such as Phoenix, Los Angeles, and San Francisco. The company is also testing its services in Austin, Texas, with intentions to launch fully in the near future.
Recently, Waymo secured a significant $5.6 billion in a Series C funding round led by its parent company. This marks the second time Waymo has sought external funding, following a $2.25 billion Series B round in 2020, which eventually increased to $3.2 billion. The latest capital infusion is earmarked for expansion into new cities and for advancing the company’s autonomous capabilities, particularly for applications in various business sectors.
In October, Alphabet’s (NASDAQ:GOOGL) Waymo announced a significant strategic partnership with South Korean automaker Hyundai. This multiyear agreement aims to integrate Waymo’s cutting-edge autonomous driving technology into a substantial number of electric Ioniq 5 SUVs over the coming years. These vehicles will be produced at Hyundai’s upcoming manufacturing facility in Georgia. Waymo plans to initiate on-road testing of these electric vehicles in late 2025, with the expectation of incorporating them into its robotaxi fleet in subsequent years.
Overall GOOGL ranks 4th on the list of stocks featured in Jim Cramer’s latest game plan. While we acknowledge the potential of 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 timeframe. 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.
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Disclosure: None. This article is originally published at Insider Monkey.