The stock tumbled after European Union regulators knocked the Internet search giant with a record $2.7 billion fine in June, but has since propped itself back up.
"Every time the stock takes a hit, it bounces back," TheStreet's founder Jim Cramer said during a web conference with Action Alerts PLUS members Wednesday. "And that's simply because it has so much going for it."
Cramer pointed out that Alphabet's last big sell-off in March -- when advertisers were said to be pulling out from the company's YouTube unit over concerns about ads appearing next to hate speech or other objectionable content -- proved to be short-lived. The Wall Street Journal reported at the time that companies such as General Motors (GM) - Get Report , Starbucks (SBUX) - Get Report , Coca-Cola (KO) - Get Report , PepsiCo (PEP) - Get Report , Wal-Mart Stores Inc. (WMT) - Get Report and Dish Network Corp. (DISH) - Get Report were fleeing the service, but business soon bounced back. The stock quickly climbed more than 20% to an all-time high.
"What an opportunity that was," Cramer said. "One month after hitting lows, the stock was trading above the level it was before the so-called 'scandal' -- and we all know what happened next. This recent pull-back is the same type of look. Google's fundamentals remain intact."
Cramer said that on top of Alphabet's search dominance, he was excited about the potential for GOOGL diversifying its revenue streams. He pointed to the company's efforts to dominate the automated-car market with Waymo, as well as to the potential value of YouTube, Google Cloud and the company's artificial-intelligence and machine-learning initiatives.
"This is a real powerhouse," Cramer said.
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