Another of Cramer’s favorite internet stocks – now that Google has stalled – is IAC/InterActiveCorp . There was a time when Wall Street wasn’t sure what to make of IACI. It seemed to have a number of businesses that were just way too diverse to work together. But Barry Diller has worked some magic with the company, and it’s up 60% since Cramer recommended it at $25.55 on Aug. 5.

The genius of IACI is the brands it buys. You might know IACI as the owner of the search engine formally known as Ask Jeeves, but it also owns Match.com, CollegeHumor.com and LendingTree. Diller has the compay’s hands in everything from tickets to media to advertising and that’s translating into 8% accelerating growth. Diller also promised to take IACI’s 5.8% share of the search market much higher – and Cramer believes him.

There’s one more reason Cramer is so revved up about IACI. The company has a lot of money and it has been using that to buy back stock. It bought back 36.4 million shares in 2006, reducing the absolute share count by 11%. That increases earnings per share and creates a cushion in case the stock gets hammered. Best of all, IACI still has 58 million more shares to buy in its program. That buyback is in there everyday creating a supply shortage that can only send the stock northward.

Bottom line: Even up fifteen straight points, IACI still has the juice. That’s why it’s Cramer’s No. 2 internet stock for right now, while we wait for Google to get back on its feet. His first pick is up after the Lightning Round.

Questions? Comments?