After the stock of Google parent Alphabet shed some of itsgains post-earnings as investors acted on concerns about the tech giant's advertising model, Jim Cramer explained the stock's temporary weakness.
"It's entirely possible that the growth in their core business is slowing," the "Mad Money" host said. "But Alphabet does have $94.7 billion in cash that it can use to make acquisitions or buy back stock in order to boost the earnings per share. More important, I refuse to write off a company that has the No. 1 autonomous driving platform, as well as what can be considered a worldwide television network [with] zero production costs — YouTube — not to mention virtually a hammer-locked monopoly business called search."
Cramer figured that while Wall Street digests what it considered to be a miss for Alphabet, its stock might become a "source of funds" for managers who sell it to buy faster growing names.
"No one downgraded it. Most analysts actually praised it and raised their price targets," he added. "I say wait until the hot money comes out and then make your stand, which will, I believe, not be too far down from these levels."