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Morning Bell With Jim Cramer: Attack on Big Tech

The Street's Jim Cramer looks at the latest legal attacks on big tech and shares his thoughts about giving.

Stocks rebounded Friday from the previous session's broad losses, which were fueled by worries that global growth could be stalled by the spread of COVID-19 variants.

TheStreet.com Founder Jim Cramer was concerned about lawsuits against tech companies and he shared his thoughts with Jeff Marks, senior portfolio analyst at Action Alerts PLUS, the investing club tied to Cramer's charitable trust.

"This is an attack on the rich and I don't like it," he said. "I think that it's wrong."

Google, Facebook, Amazon: 'Companies We Love'

Alphabet's Google  (GOOGL) - Get Alphabet Inc. Class A Report was sued by 36 states and the District of Columbia, focusing primarily on the control Google exerts over its app store.

The lawsuit alleges the Mountain View, Calif., tech, search and advertising company illegally abused its power over the sale and distribution of apps through the Google Play store so it could collect "extravagant" commissions of as much as 30% on app purchases, the states said.

This is one of several legal actions that have been taken against big tech companies.

"They're saying 'we're suing Alphabet because it's too big,'" Cramer said. "That's the price for success in this country."

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On Friday, President Joe Biden was set to sign an executive order directing regulatory agencies to more closely investigate industry mergers and tech companies’ use of consumer data.

Cramer said the Democrats and Republicans are "united against the companies that Americans love most," such as Apple  (AAPL) - Get Apple Inc. (AAPL) Report, Facebook  (FB) - Get Facebook, Inc. Class A Report and Amazon  (AMZN) - Get Amazon.com, Inc. Report.

The $100 Million Club: 'You've Got to Help Others'

"These are the companies we love," Cramer said, "yet because they're so powerful, our Congress is against them.'

Cramer said it was similar to the situation in China, with President Xi Jinping and e-commerce giant Alibaba  (BABA) - Get Alibaba Group Holding Ltd. Sponsored ADR Report, which was fined a record $2.8 billion by Chinese regulators in April.

"These people created great companies," he said. "I hope they do what (Amazon Founder) Jeff Bezos's ex-wife does, which is give the money away wisely."

Cramer said that Steve Ballmer, former Microsoft  (MSFT) - Get Microsoft Corporation (MSFT) Report CEO and current owner of the Los Angeles Clippers, recently joined the so-called "$100 Billion Club," the ninth person in the world to do so, according to Bloomberg.

"I used to work with him in college," Cramer said. "God bless him, that's terrific, but you've got to give money away because you're so rich and fortunate. You've got to help others."

Alphabet, Amazon, Apple, Facebook and Microsoft are holdings in Jim Cramer's Action Alerts PLUS investing club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.