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Cramer: How earnings could double at this tech 'monster'

Despite missing earnings expectations, Google's profits could explode if the company figures out the best way to monetize YouTube, CNBC's Jim Cramer said Friday, before the stock opened at a record high.

"Google is a monster," Cramer said on "Squawk on the Street." "It's a beast."

Google reported a 22-percent revenue increase in its core Internet business when it posted quarterly earnings Thursday, missing analysts' expectations on profits.

(Read more: Google's strength in advertising to drive growth - analysts)

Cramer said Google has so much cash it could buy rights to broadcast NFL games if it wanted to, and that the tech giant could even set up a pay-per-view framework for streaming matchups, he said. If Google's leadership figures out YouTube, earnings could double, he said. Google reported $16.86 billion in revenue during the last quarter.

Investors face a pressing question after Google and Facebook reported earnings and saw their share prices soar, Cramer said. In the end, both could be winners, he added.

(Read more: Google cuts the cord on its handset business)

"Google and Facebook, when I go through the calls, I just say, 'Wow. They've got the smartest people in the world,'" Cramer said. "We should stop being so down on ourselves as Americans. No one in China has anything like these companies."

Disclosure: Cramer's charitable trust owns shares of Google.

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street." AP and Reuters contributed to this report.

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