'Real Money' Radio Wrap-Up: Don't Buy the Baidu Hype

Everybody -- except Cramer -- is buzzing about Baidu.com(BIDU Quote).

Cramer told listeners on his "RealMoney" radio show Friday to ring the register "big time" if they were lucky enough to own Baidu, the Chinese Internet company that more than quadrupled since being priced at $27 a share.

"It's absurd that it's up 80 points after being priced today. It's positively 1999 and it's bad for the business," says Cramer.

Part of the reason for the stock's pop is that only 4 million shares were offered to the public, causing a significant squeeze when retail investors started piling in. Cramer said the bankers that structured the deal eventually will face investor wrath "because this stock will eventually implode."

Cramer's other reason for disliking the stock is the comparisons to Google(GOOG Quote), a long-time Cramer fave. Cramer said that Google may have been underpriced last year when it went public, but it has proven to be a huge earnings grower. The same cannot be said for Baidu, which already trades at a multiple far greater than Google.

Cramer advised listeners feeling compelled to take the "Red Chinese Internet plunge" to buy shares of NetEase(NTES Quote), Sohu.com(SOHU Quote) and even eBay(EBAY Quote) instead.

Cramer said he doesn't mind expensive stocks, but he can't come up with an estimate that makes Baidu cheap. "I know people made a killing on Google. But Internet companies do not grow to the sky. And this is something that should have already been learned."

"I'm going to sit this one out. I don't want to be linked to Baidu. If you own it and you are speculating, then ring the register."