Last night on CNBC’s MAD MONEY, Jim Cramer came out and almost did the unthinkable to the Googlites. He officially changed his tune Google (GOOG-NASDAQ) as far as his old Bullish stance to that of a cautionary stance and thinks it needs to go under $450 before you can make money on it. He is not backing away from his $600 target long-term and he still thinks it is the best web search company out there. If you have been reading about Cramer or watching him regularly, you will know that he sort of started changing his wildly bullish stance early in February. GOOG fell 0.3% in after-hours from the Cramer dump after falling 1.2% to $464.93 in regular trading.
Cramer noted that his #3 pick to temporarily replace GOOG is Yahoo! (YHOO-NASDAQ). He liked the comScore data and still thinks it goes up if Semel would just leave as CEO.
His #2 pick to replace GOOG for Internet stocks is IAC/Interactive (IACI-NASDAQ). 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 CEO’s in corporate America.
Cramer said that eBay (EBAY-NASDAQ) is the #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 interviwed GSI Commerce (GSIC-NASDAQ) 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 (AMZN-NASDAQ). The company will assess the capital structure, but he said they have huge growth ahead.
Jon C. Ogg
February 27, 2007
Jon Ogg is a partner in 24/7 Wall St., LLC and he can be reached at [email protected]; he does not own securities in the companies he covers.
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