We're locking in big profits on a long-held tech name with some uncertainty around the stock

Published Mon, May 1 20233:07 PM EDT

We're selling 200 shares of Alphabet (GOOGL) at roughly $107.31 each. Following Monday's trade, Jim Cramer's Charitable Trust will own 875 shares of GOOGL, decreasing its weighting in the portfolio to about 3.51% from 4.28%. Our trading restrictions on Alphabet are finally clear Monday, freeing us up to trim our position. It's a sale we first said we would make last month when we downgraded our rating on the stock to a 2. The trade is also something we discussed during Monday's Homestretch . One of our main concerns at the time of our downgrade was the internet giant potentially losing a few points of share in the lucrative search industry to Microsoft's new artificial intelligence-powered Bing, which saw a massive increase in users after its integration with ChatGPT. On the Microsoft (MSFT) earnings call, management talked up Bing's more than 100 million daily active users and how it grew its share in the United States. Microsoft is also a Club name. We also think the Justice Department's ongoing antitrust lawsuit concerning Google's dominance in the online ad market will remain an overhang on the stock. While we liked the company's first-quarter earnings report and thought the beat on Advertising revenue, the flip to profitability at Google Cloud, and the new $70 billion share repurchase program would have been better received by the market, the quarter wasn't enough to clear up our concerns. With this sale, we'll realize a gain of more than 255% on stock purchased in July 2014. (Jim Cramer's Charitable Trust is long GOOGL, MSFT. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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