On Tuesday, Alphabet was down nearly 5 percent despite Monday's stellar earnings report. The earnings beat Wall Street expectations on multiple fronts. The stock immediately surged, only to turn negative hours later. On Tuesday, the stock open 1.4 percent lower. The market-wide sell-off only made matters worse.
"If you only looked at the stock, you'd think Alphabet just delivered some really ridiculous downside surprise," Cramer said on Mad Money Tuesday.
But, he said, "nothing could be further from the truth."