Cramer’s 10 Hottest Momentum Stocks
To Cramer, Google is the "Sultan of search, " given it commands 66 percent of queries in the U.S. and 75 percent of search advertising budgets. Additionally, its paid search business is growing by more than a 20 percent annual clip.
Speaking of online advertising, consumers currently are migrating from desktop-orientated ads to mobile, which Google also has a major presence in. More than half of all smartphones in the U.S. are powered by Google's Android operating system.
"Unlike so many other Web-based companies that were caught flat-footed by the speed of the switch to mobile, Google saw it coming — they'd been giving away Androids for years, precisely so that they'd be ready for this moment, " Cramer said, noting that Google's AdMob business, for example, sells mobile display ads. "Last year they captured 51.7 percent of the market and they're still the number one player and, of course, Google bought Motorola Mobility, giving them tons of patents and a real presence on the hardware side."
In addition to search and mobile, Google has executed a strategy for social media by way of Google Plus and YouTube.
Advertising is a $480 billion business worldwide with online sales less than 10 percent. Cramer thinks the online advertising dollars will only continue to rise, though, giving a boost to Google.
Google also has a clean balance sheet and strong management team. The stock currently trades at around 15 times next year's earnings, but considering it's expected to earn $67.33 in 2015, it really sells for just 11 times 2015 numbers. To Cramer, that's incredibly cheap given its 15 percent growth rate.
To Cramer, Visa is a play on "one of the biggest secular growth stories on earth: the worldwide switch from paper to plastic." After all, roughly 52 percent of all payments in the U.S. are still made in cash, so he thinks there is a lot of room to grow. Internationally, about 85 percent of all payments are made in cash, so there is even more potential.
"That's one of the reasons why the secular growth of electronic payments is expected to increase at a 10 to 12 percent annual clip worldwide for the next several years, " Cramer said, adding that he thinks Visa could "grow even faster than that thanks to more partnerships with financial institutions, and more new products."
Visa currently controls 46 percent of global credit card volumes and 56 percent of global debit volumes.
In addition, Cramer said Visa has a clean balance sheet with $2.3 billion in cash and no debt. It also has a strong management team, he said.
To Cramer, Visa's stock is cheap on next year's numbers, too. It currently sells for 19 times 2013 earnings estimates with a growth rate in the double-digits. In turn, he thinks it's worth considering.