Cramer: Google to Hit $600
Google is “too cheap,” Cramer said during Tuesday’s Stop Trading!. He recommended the stock, predicting it would climb another $100.
Cramer expected Google , “a cyclical and secular gainer,” to earn $30 a share in 2010 as more and more advertising dollars are spent online. He put a 20 price-to-earnings multiple on the stock, saying it was “very reasonable” given the company’s growth rate is supposed to jump to 23% from 21%. That would mean Google should reach $600 a share.
Elsewhere in tech, Cramer said he liked Palm over Research in Motion ahead of RIMM’s quarter on Thursday. He also chided short sellers for betting against Palm, pointing to the strength of smartphones and the mobile Internet right now.
Lastly, Caterpillar reported a “miserable monthly [orders] number,” Cramer said, but investors would be wrong to count the company out. He called CAT, as well as Bucyrus International and Joy Global , “global recovery plays” that benefit from a weak dollar. So much so that CAT’s earnings “could explode” regardless of the reduced orders.
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