CNBC’s Jim Cramer had no hesitation in naming Alphabet the clear winner amid a barrage of Big Tech earnings Wednesday night. “The call with Google and Alphabet was an extraordinary call,” Jim said Thursday on “Squawk on the Street.” “If the stock price is $370, I think it will go to $400,” he added. Jim ranked Alphabet as the top performer among the four mega-cap stocks in his report, followed by Amazon, Microsoft, and Meta Platforms. All four stocks are included in Investing Club’s portfolio. Nearly every firm on Wall Street has raised their price targets for Alphabet stock “pretty dramatically,” Jim said. The endorsement comes after Alphabet delivered an impressive first quarter that smashed both revenue and profit expectations by a high bar. The day after the news broke, the stock price rose more than 7%, closing again at a new all-time high. Alphabet has become the top “Magnificent Seven” stock this year, rising nearly 20%. During the quarter, the company demonstrated continued momentum in its artificial intelligence efforts while increasing significant capital spending to continue building out its AI infrastructure. Spending guidance also rose slightly. However, investors were not worried as the company showed a return on investment. The scrutiny of ROI has weighed on Alphabet’s peers, especially Meta Inc., whose stock price fell more than 9.5% on Thursday after the social media giant announced it would increase capital spending. In Jim’s view, Alphabet has a cloud and Meta doesn’t, so they’re distinct. GOOGL YTD Mountain GOOGL Stock Price Performance YTD. Google Cloud’s growth has accelerated as demand for AI-powered services increases. Management noted that the backlog is rapidly expanding, nearly doubling to $460 billion, and corporate adoption is increasing, and for the first time included sales of high-demand tensor processing unit (TPU) chips in the backlog. The core business of Google Search is evolving, with AI-enhanced query insights and traditional answers to improve user engagement and ad performance. Just a year ago, investors thought the rise of chatbots like OpenAI’s ChatGPT and Anthropic’s Claude would eat into the business, giving the segment a much-needed boost of confidence. The company also demonstrated that its enterprise AI efforts are paying off with its flagship AI model, Gemini. The company’s products, including Gemini Enterprise, are designed to help enterprises build and deploy AI applications, opening up new revenue streams for Alphabet outside of its core advertising business. Jim Cramer ranks hyperscalers’ earnings Alphabet is the winner, with more upside expected Amazon rises another 15% and won’t stop there Microsoft’s earnings are far from impressive. Here’s why I’m afraid of Meta’s plummeting business results and won’t let go of my shares.
