GO
Loading...

Cramer: Google to Hit $600

Tuesday, 22 Sep 2009 | 3:09 PM ET

Google is “too cheap,” Cramer said during Tuesday’s Stop Trading!. He recommended the stock, predicting it would climb another $100.

Stop Trading, Listen to Cramer!
Mad Money host Jim Cramer shares his stock picks with CNBC's Erin Burnett.

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.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
CAT
---
M
---
MSO
---
BB
---
RL
---
GOOGL
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.