Tonight on CNBC's MAD MONEY, Jim Cramer came out and officially changed his stance on Google Inc. (NASDAQ:GOOG). He has noted that it was a tech exception before, and said he is not backing away from his $600 target. What he did say is that it is acting as a marked-time stock and it needs to fall down to $450.00. If you hold it right now he thinks you won't have much upside in the immediate future. He still thinks it is the best web search company out there, but he thinks there are three internet stocks that can offer more upside from the Google withdrawals. If you have been reading about Cramer or watching him regularly, you will know that he sort of started changing his wildly bullish stance in early February. GOOG fell 0.3% in after-hours after falling 1.2%.
Cramer noted that his No. 3 pick to temporarily replace GOOG is Yahoo Inc. (NASDAQ:YHOO). He liked the comScore data and still thinks it goes up if Semel would just leave as CEO, but here is what he really thinks.
His No. 2 pick to replace GOOG is IAC/Interactive (NASDAQ:IACI). He was very much in praise of Barry Diller and the IAC properties. Here are his full comments and, if you want to compare these comments, you'll see why we had noted early this month that Diller was perhaps one of the most entrenched CEOs in corporate America.
Cramer said that eBay Inc. (NASDAQ:EBAY) is the No. 1 internet stock that you can buy to replace GOOG. He noted that EBAY is not as good of a company as GOOG, but he gives multiple reasons as to why he likes it the best.
Cramer also interviewed GSI Commerce (NASDAQ:GSIC) and the CEO said that the company is just getting going now. He thinks there is huge upside. The CEO said he doesn't compete with their customers and partners in any way, unlike Amazon.com Inc. (NASDAQ:AMZN). The company will assess the capital structure, but he said they have huge growth ahead.
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
Cramer's three replacements for Google
Posted Feb 26th 2007 7:20PM by Jon Ogg
Filed under: Internet, Google (GOOG), Yahoo! (YHOO), eBay (EBAY), Amazon.com (AMZN), IAC/InterActiveCorp (IACI)
Closing Bell: Stock bulls and dollar death (DDRX,GMCR, PEET, SBUX, EBAY, CI, TECD)
So long peak oil, here comes peak uranium
Black Friday expected to be strong, no promises for Christmas
Reader Comments (Page 1 of 1)
3-01-2007 @ 8:08PM
Marsello said...
Cramer touting eBay as the number 1 pick to replace Google? That comes as quite a surprise to me. I don't think his reasons are good enough simply due to the issue of eBay's growth. eBay can't simply keep raising fees to perk up its bottom line and how about the whole issue about its flawed feedback system?
http://www.feedbacksecrets.com/
2-27-2007 @ 3:23AM
Uninterested Investor said...
Currently, Ebay has the same level of traffic as they did at the beginning of 2003 (click on 5 year chart):
http://info.alexa.com/data/details/traffic_details?url=ebay.com
Rule of the thumb: Whatever Cramer says, do the opposite!
2-27-2007 @ 5:20AM
Sue said...
I cannot understand how Cramer can go from one extreme to the other. Last year he claimed ebay should be valued around $25, now they're a replacement for Google?
Does Cramer have an attention seeking disorder?
2-27-2007 @ 9:42AM
My Blind Auctions said...
Cramer must be running out of ideas to be picking eBay as the no 1 replacement for Google. I kinda like the pick on GSI Commerce though, as the stock has been progressing pretty well as of late.
http://www.myauctionfeedback.com/blindauctions/
2-28-2007 @ 2:00AM
firemeg said...
Last summer, Cramer was all but telling everyone to sell eBay that it was crap, and that there were problems with management and the decisions made by management (to which thousands of eBay sellers nodded in agreement). Now he says they should replace Google? He is 1) on crack or 2) been paid off by Meg Whitman.
Right now Google owns two of the top three websites in the world (Google & You Tube). Also Google owns Blogger, which currently is trading traffic ranks with ebay for 13th and 14th position on almost a daily basis. Blogger (the Google company) is on its way up, while eBay's traffic is at a level currently on par with traffic that it received in 2002.
Google also has at least three other sites in the top 25 in traffic rank worldwide. eBay's next most popular site after eBay.com is ranked 237th for Skype.com (the $4 billion dollar oops).
3-07-2007 @ 12:27PM
Tracy Riggs said...
Before long eBay will be on every web-site imaginable. Any company out there wanting to sell off lots of inventory can have an eBay integrated-Bid -listed on their web-site that is pay-pal protected. Ebay will dominate auction- bidding-on most sites....That spells money...