CNBC's Jim Cramer on Tuesday told investors he'd like to see more transparency about Google-parent Alphabet's various ventures, saying a more streamlined approach to businesses would help the stock.
"It's time for Google, Alphabet — whatever, I don't even care — to stop running as a skunkworks for all sorts of ideas that may or may not work and start focusing on actually making some money," he said. "Otherwise, let's just say: I smell a skunk."
Shares of Alphabet dropped after Google announced last week it would pause an image generation feature of Gemini, its artificial intelligence model. After a number of users complained about the image generator's performance, the company conceded the program produced "inaccuracies" in historical pictures. Competition for AI products is already stiff, and investors worried Alphabet's AI blunders will put its search business at risk.
Cramer has been a backer of Alphabet since it became public, but critiqued the company as a "black box" with too many divisions that aren't profitable. He wondered about the state of its self-driving car business, Waymo, and called its AI efforts "episodic." He also said he's unhappy with the way the company carried out the NFL Sunday Ticket package, saying Alphabet didn't take advantage of huge advertising opportunities.
To Cramer, Alphabet should follow Apple's lead by cutting projects that may no longer be effective. Bloomberg reported Tuesday that Apple was canceling its electric car project. Cramer said Apple was "embracing efficiency" with this decision, perhaps allowing the iPhone maker to put more resources towards generative AI.
"Here's the unvarnished truth about Google that no one ever wants to say because they're afraid," he said. "Its stock would be dramatically higher if it would just do what Apple did today, according to Bloomberg."
CNBC has reached out to Alphabet for comment on Cramer's critique of the company.
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