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Cramer's 'Mad Money' Recap: Google's World

Cramer goes one on one with Google's Chairman and CEO Eric Schmidt.
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"It's time to buy


(GOOG) - Get Alphabet Inc. Class C Report

," Jim Cramer told viewers on a shortened, midday episode of his "Mad Money" TV show Wednesday. He called the company a steal at its current $500 price point.

In a special guest appearance, Cramer talked with Google Chairman and CEO Eric Schmidt, to learn more about the company whose stock has risen more than 700% since its IPO.

Schmidt said that Google has no plans to split its stock, and he feels part of a company's value should be reflected in its stock price. He defended the company's policy of not providing earnings guidance by stating that he will not let Wall Street get in the way of running the company's business.

On a philosophical level, Schmidt dismissed the notion that Google promotes "intellectual laziness." He said that people get smarter by having access to information and that Google simply organizes that information in the best possible way. He touted knowing how to search as one of the most important skills for children to learn in today's world.

Cramer: The SEC Doesn't Get it

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Regarding the company's business, Schmidt said he feels international sales could eventually surpass domestic sales and potentially account for up to 60% of the company's business. He also said that mobile computing could eventually surpass domestic computing in importance due to its personal, targeted nature.

Pressed by Cramer about a possible slowdown in the company's growth because of its huge size, Schmidt responded by saying that all companies eventual suffer from the laws of large numbers and can't simply keep growing exponentially. He said that at Google, the company is solving this problem by continually creating new businesses to keep growth alive.

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Schmidt also defended his company when asked about potential anti-trust concerns by saying that Google can be big without being evil. He explained that Google does not trap its users into a single way of doing things and always ensures there's a competitive marketplace.

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Finally, Schmidt said that Google has not yet determined the best model for advertising on its YouTube video sharing site, but is working to monetize the property. Likewise, he offered little guidance on the company's upcoming Android mobile operating system, saying only that it will be released before year's end.

Outrage of the Day

In this segment, Cramer took aim at the Securities and Exchange Commission for its decision to rescind its ban on the naked shorting of the bank stocks.

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Cramer said without this rule, we will likely see continued pressure on these stocks and the possibility of additional bank failures. He again advocated extending the ban on naked shorting to all stocks.

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At the time of publication, Cramer was not long on any stock.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

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