- CNBC's Jim Cramer told investors on Tuesday that Google's parent company Alphabet could do better if it streamlined some of its business ventures.
- “I don't care about Google or Alphabet or whatever it is, but it's time to stop running all sorts of ideas like skunkworks that may or may not work and start focusing on actually making money. ” he said. “If not, let's just say it smells like skunk.”
CNBC's Jim Cramer told investors Tuesday he wants more transparency about Google parent Alphabet's various businesses, saying a more streamlined approach to the company would help the stock price.
“I don't care about Google or Alphabet or whatever it is, but it's time to stop running all sorts of ideas like skunkworks that may or may not work and start focusing on actually making money. ” he said. “If you don't, just say it smells like a skunk.”
Alphabet's stock price fell after Google announced last week that it would suspend the image generation capabilities of its Gemini artificial intelligence model. After many users complained about the image generator's performance, the company admitted that the program introduced “inaccuracies” in historical photos. Competition for AI products was already heating up, and investors worried that Alphabet's AI failures could put its search business at risk.
Mr. Cramer, who has supported Alphabet since it went public, criticized the company as a “black box” with too many unprofitable divisions. He questioned the current state of self-driving car business Waymo, calling the company's AI efforts “temporary.” He also said Alphabet was not taking advantage of a huge advertising opportunity and was dissatisfied with the way the company implemented its NFL Sunday Ticket package.
For Cramer, Alphabet should follow Apple's example and cut projects that may no longer be effective. Bloomberg reported on Tuesday that Apple is canceling its electric car project. Cramer said Apple is “focused on efficiency” with this decision, which will likely allow the iPhone maker to devote more resources to generative AI.
“Here's the unvarnished truth about Google that no one wants to tell because they're too scared,” he said. “According to Bloomberg, if Apple did what it did today, its stock price would rise dramatically.”
CNBC asked Alphabet for comment on Cramer's criticism of the company.
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