"I just think it's another 'loser case' by the government. And by the way, the sum of the parts is worth far more than $1,500," Cramer said on "Squawk Box."
The "Mad Money" host said he believes the Department of Justice is likely to struggle to prove its case that Google abused its market power in its search and advertising business.
Cramer said Alphabet shareholders would be winners if the government were to force Google's parent to split up.
"I've been saying over and over again, they ought to break this company up and bring out value. It's the DOJ taking it from buy to strong buy," he said. "Ultimately, Google, if they break it up, then you own the stock. If they don't break it up, then you own the stock. It's a pretty good situation."
Shares of Alphabet were largely unchanged on Tuesday. The stock is up about 15% in 2020, outpacing the broader S&P 500, which has advanced nearly 7% year to date.
Eleven Republican state attorneys general joined the DOJ as plaintiffs in the case, according to an open docket of the case filed Tuesday morning.
The litigation marks the government's most significant antitrust move since its groundbreaking case against Microsoft more than 20 years ago.
Speaking before the suit was officially filed, Cramer said Google will be ready for the lawsuit with a high-quality legal team.
He also noted it is not clear whether the government would even be pursuing a break up of the company as part of the antitrust action.
But, he added that "if the Department of Justice is going that route, then they're just a great investment banker."