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Recently, it seems as if everywhere Jim Cramer goes, people ask him the same question about the same stock: "What's the deal with
(GOOG - Get Report)?"
On Monday's "Mad Money" TV show, Cramer tackled the question head-on.
"Lately the stock has stalled," he said. It is time for market players to collectively acknowledge that while Google is "great," its 90% growth is decelerating. Google still has $600 written on it, but it is going lower, Cramer predicted. When the stock falls through $450, he said it will be time to do some business with it again.
Right now at $465, however, is not the right time to buy it, Cramer said. "We have to wait until the momentum buyers are washed out and finished selling."
Instead, he said, he has three Internet stocks with "better prospects" he would buy right here, right now to get through the "Google withdrawal." He presented them in descending order.
Cramer's third favorite Internet pick is
(YHOO - Get Report)
, which he owns for his
Action Alerts PLUS
Although nobody can say this company is better than Google, the reason Cramer likes Yahoo!, the stock, has nothing to do with Yahoo!, the company. Right now the stock is being bought hand-over-fist, and if "you mimic where the big money goes, it's often enough to score a big win," he said.
There are two reasons why Cramer believes people should buy Yahoo!. First,
, a giant mutual fund that has been cutting its "massive stake" in Yahoo!, is almost done selling, said Cramer. Second, Legg Mason is buying shares of Yahoo!. When Fidelity's selling is done, the negative pressure on Yahoo! is likely to diminish, Cramer said. "This should take Yahoo!'s stock higher."
In addition to these two reasons, Yahoo! also has positive fundamentals, he said. It has a new search engine, Panama, which looks like it's "for real," and it has low guidance, which means a lowered downside risk, Cramer said.
"Its estimates are too low and could be beat here," he said.