This Day On The Street
Continue to site
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

Jim Cramer: The Google-Nest Deal Is Huge

Now, lots of people have been talking about a thermostat that's linked to your personal computer or to a device that allows you to control it remotely. Similarly, others have tried to link your home-security system. These are all part and parcel with the notion that you want control over your house in order to know what's going on when you are away, that you want to be able to get in without fumbling with keys and to be able to control the temperature and, therefore, your heating bill.

I was quite taken, for example, by ADT's (ADT) pulse system, which allows you to remotely control your fire-monitoring and your burglary protection. However, we know that AT&T (T) is also getting into that game and can afford to undercut ADT. This is one of the reasons why that stock has been such a dog.

I know, also, that Con Edison (ED) has a device made by Honeywell (HON) that it gives away with free installation -- which is rather unbeatable vs. installing an expensive Nest thermostat yourself. If that catches on, I don't know a soul who would pay for a Nest thermostat, and Google will surely have overpaid, at least for that portion.

Still, the fact remains that Google is buying a device that captures still one more aspect of the Internet in a way that makes your handheld device more valuable. The move shows that the company truly understands the psyche of the consumer: That is, anything that makes the consumer more connected to her device and the Internet with a Google interface has to be considered a win. That's especially considering that the most important do-it-yourself home retailer has already said that the customers can't get enough Nest smoke detectors.

Must Read: Jim Cramer: New Insight Into Retail Investors

What can I say? It's certainly a better use than Google's going to get from keeping the cash in the bank, and if it's part of a better mousetrap that drives you to a Google-powered device, then it is most definitely a win.


At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long Google and Honeywell.

Editor's Note: This article was originally published at 6:10 a.m. EST on Real Money on Jan. 14.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,699.58 -191.58 -1.07%
S&P 500 2,057.44 -23.99 -1.15%
NASDAQ 4,757.3970 -60.1970 -1.25%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs