This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

'RealMoney' Radio Recap: Gaga Over Google

After Google's (GOOG) "magnificent" earnings report Thursday night, the stock traded to $346 Friday, within $4 of Jim Cramer's $350 price target. "It's good to be right," said Cramer.

Cramer told his "RealMoney" radio show listeners Friday that Google is benefiting from the "biggest and best secular growth story of the decade." The Internet and Google are both killing traditional forms of advertising, such as TV and newspapers because Internet advertising allows one to target customers and track whether people are actually viewing the ads, he said.

Cramer said he will not issue a new price target for Google because price targets are used mostly as attention-getters. And, as of Friday, Google has people's attention.

However, Cramer believes Google is headed higher, and he explained the logic of his former $350 price target. He said he used an EPS estimate of $7 for 2006 and applied a 50 multiple to arrive at $350. Now, that $7 EPS estimate for 2006 is below all the estimates on the Street, and a 50 multiple is conservative for a company with the kind of growth Google is demonstrating, he said. One could argue Google could make $10 in 2007, said Cramer.

"Forget about $350," he said. All you need to know is "Google is going higher. How much? I don't know. It's still a triple buy."

If you don't own Google and you feel like you missed the boat, said Cramer, "Please buy Yahoo! (YHOO)." Yahoo! also is benefiting from the same secular growth trends as Google. Although Yahoo! is not as good as Google, said Cramer, it's getting better, and it's a lot cheaper.

Stocks Under $10 co-author David Peltier joined Cramer to talk about Langer (GAIT), Microfield Group (MICG) and Ants Software (ANTS), three stocks brought up during Thursday's "Stump Cramer" segment in which listeners ask about obscure and low-priced stocks.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs