Alphabet Inc. (NASDAQ:GOOGL) was among the stocks on Jim Cramer’s Mad Money radar as he taught investors how to profit from the upcoming wave of takeovers. Cramer explained why the stock declined in the second quarter, as he commented:
Speaking of Google, parent company Alphabet was able to do a giant fundraise not long ago. That way, it can spend all at once on data centers again. Terrific news on one hand, but like Amazon, Meta, and Microsoft, that spending is a real blow to free cash flow and you get a paused buyback… Hence 6% decline. That said… [it’s] getting very little credit for YouTube, Google Cloud, or even search. It’s absurd, but it doesn’t matter. It doesn’t matter because of the seemingly profitless CapEx.
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Alphabet Inc. (NASDAQ:GOOGL) provides technology-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms such as YouTube and Google Play. Cramer mentioned the company during the June 8 episode and said:
There’s the equity issuance from Google last week. Now I didn’t see it coming. You didn’t see it either. It was brilliant if you work at Google… You now have the money to build more… data centers to keep your cloud customers from going to another competitor. And that’s what they’re going to do. It’s bad for everyone else, though, especially shareholders of Meta, Amazon, and Microsoft. The ease with which Google raised the cash was incredible. Goldman Sachs did a tremendous job.
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