RBC's Mark Mahaney raised his price target to $1,025, a move much more agreeable to Cramer, the co-manager of the Action Alerts PLUS portfolio pointed out on CNBC's "Stop Trading" segment. Alphabet is an AAP holding. Shares currently trade around $804.
Mahaney says Alphabet is underestimated and its sales growth will continue to be strong. YouTube alone could churn out revenue growth of 30% to 40%, he added.
What does this mean? To Cramer, Mahaney's report is a "line in the sand," with RBC saying Wedbush is wrong. Cramer said that for now the market seems to agree with Mahaney because shares of Alphabet are still trading near all-time highs.
Cramer thinks RBC will be proved right in this disagreement because he has been encouraged by the stock's low valuation and superior growth.
At the time of publication, Cramer's Action Alerts PLUS had a position in GOOGL.