Cramer's Morning Take: Alphabet 5/15/24

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

SPEAKER_2 (0:08)

A lot of people doubted Alphabet's AI capabilities earlier this year, but it sounds like yesterday, with the Gemini event that they hosted, people are just back to the idea that they do have, you know, they aren't stragglers in the AI.

Jim Cramer (0:22)

I know, and yet yesterday, I was using Google, using Google Search, versus using Chat GPT, and I should have gone to Claude, and I didn't. But Chat GPT was so much more thorough than Google, without ads.

So I still think the existential threat is there. However, these guys have YouTube, which is 10% of our occupation of our TV time, and I think there's just a sense that they'll make it better.

SPEAKER_2 (0:47)

I do want to go back to the retail sales report, because it was a little bit weaker, and we have been, there's been a lot of concerns about the consumer lately, but you know, Best Buy, there's a nice, a bull versus bear debate outlined by Bank of America, they're actually, they have an underperform on this stock. But actually, electronics and appliance stores was a lone bright spot in the retail sales.

Jim Cramer (1:10)

You and I vented frustration, because some people say we're going to be a quarter early, and obviously we've had some, you know, they're not having retailers been great like Costco. But this is a refresh, PC refresh, not gaming, not GameStop, although it compares very positively to GameStop. But it is frustrating for us, like Avid Labs.

SPEAKER_2 (1:29)

And that's part of the bull bear debate, right? So the Bank of America, they point out that the computing category, this is the bull point of view, is to improve a lot of AI capabilities. It's going to cause a lot of people to upgrade their tech hardware. You had laptops turning positive in Q4 last year. That should continue throughout this year. But on the other hand, maybe the timing around the replacement cycle, replacement of everyone buying the electronics they bought during COVID, that's still uncertainty. And then you mentioned Costco. It's still the Amazon.

Jim Cramer (1:59)

I know. And Vizio, I mean, you have Walmart being big in TVs.

It is a PC play primarily. And then obviously, if you want to fix up your house, it's a place to go. But obviously, that's being hurt by that. I just think the PC refresh brings people into the stores. It's a very inexpensive situation. It's got a safe dividend.

It's another stock. And look, it's Stanley. Stanley, black and dirty. These are things that you buy when you can get financing.

SPEAKER_2 (2:24)

And that's what you need.

Jim Cramer (2:26)

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SPEAKER_3 (2:41)

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