GOOG Good for the Long Haul?

Google's getting killed on comments that Eric Schmidt made on my show and during an interview with Bloomberg in which he indicated that there is nothing new happening in ad spending and that it remains "eh."

The decline is driving the Nasdaq down, which is then taking the rest of the market with it despite the desperate attempts of the S&P 500 futures buyers, who were totally taken by Europe and Asia, to keep things up and stem redemptions of hedge funds.

Why this Google news is revelatory is beyond me. There was no jumping up and down for joy on ad spend in the last quarter, and I think the story is pretty consistently just OK.

You have to understand that Google, similar to Apple (AAPL - commentary - Cramer's Take), is a secular growth story caught up in some cyclical aspects right now. Just as I have no doubt that Apple is going to continue to take share in the smartphone space through its iPhones and in the hardware space through its Macs -- the company already owns the music space through its iPods -- I continue to believe that Google is going to take gigantic share in ad spend.

Of course as Schmidt pointed out in my show, the ad spend budget is rapidly being cut back by a host of companies that shouldn't be cutting it, but that's happening, hence the big decline in the stock today.

Google's one of those stocks that has no dividend and no cash underneath it, and it is not recession-resistant, so I hope no one is buying it for those reasons.

As at least one of the threesome must be met before I buy anything, I can't justify an investment in Google for the short term, but if anyone is willing to allow me the luxury of thinking long term, this is the one to think about (if not to buy) if you think that stocks are "cheap" to their growth rate and better days are eventually around the corner. (This could be called the Warren Buffett view: Of course, a stock is not of "value" until Buffett says it is, and by his not buying Google yet, and he still maintains his anti-tech bias even though this is more a media company, I guess the punditry deems it expensive.)

Know What You Own: Google operates in the Internet information provider industry, and some of the other stocks in its field include Yahoo! (YHOO - commentary - Cramer's Take), Microsoft (MSFT - commentary - Cramer's Take), Baidu (BIDU - commentary - Cramer's Take), NetEatse (NTES - commentary - Cramer's Take) and Expedia (EXPE - commentary - Cramer's Take). For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section.

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