Google parent Alphabet’s stock is “a steal here” considering the internet giant’s power in the burgeoning e-commerce industry, Cramer said Wednesday after the stock dropped 2.52 percent.
“This was the quarter where we realized that you need to pay the piper to get sales on the internet, and in most cases, the piper is Alphabet’s Google, hence its 22 percent revenue growth,” the “Mad Money” host said.
Cramer noted how many company executives have cited their direct-to-consumer businesses as areas of strength, a sign that companies like Alphabet are becoming increasingly important in driving revenue. He also called attention to how few people carry shopping bags these days on Manhattan’s Fifth Avenue, a well-known retail hub, which could mean consumers are browsing in store before buying products online.
“Whenever you hear some executive say ‘direct to consumer,’ … you should immediately think Facebook, Amazon and, most importantly, Google, because their ads are how you sell things directly to the consumer,” he said. “If you’re a retailer, you need to pay Google for advertising, just like you had to pay rent on Fifth Avenue in the old days. It’s simply where all the shoppers are, which is why I like Google’s parent, Alphabet, so much into today’s pullback.”