Take Google Discount in High-Multiple Techs

Is it a Google (GOOG - commentary - Cramer's Take)-controlled market? Is that why Schlumberger (SLB - commentary - Cramer's Take) goes up every day? Is that the secret to why Caterpillar's (CAT - commentary - Cramer's Take) so strong? Did Huntsman (HUN - commentary - Cramer's Take) get a bid because of Google? Should we be scared that Nucor (NUE - commentary - Cramer's Take) and US Steel (X - commentary - Cramer's Take) will go down on this?

Of course, the 60-times-earnings stocks in the tech world will get taken down a notch. You will see Broadcom (BRCM - commentary - Cramer's Take) and Marvell (MRVL - commentary - Cramer's Take) down, even though you have that great Kyocera (KYO - commentary - Cramer's Take) deal.

Oddly, though, those have to be bought first because the people who are selling Google don't mind paying high multiples; they just don't like paying high multiples for in-line earnings.

And if you are selling Apple (AAPL - commentary - Cramer's Take) here, or Microsoft (MSFT - commentary - Cramer's Take), techs with good earnings that aren't really anywhere vs. where they have been, I will be on the other side of you, buying it.

Oh, and now the winner and high-multiple champion is ... Chipotle (CMG - commentary - Cramer's Take)?

Yeah, pretty nutty.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Chipotle Mexican Grill to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

ALL JIM CRAMER BLOG ENTRIES | POST A COMMENT | READ COMMENTS  

---

At the time of publication, Cramer was long Microsoft.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.