Never Write Off AOL

Mary Meeker's upgrade on the stock this morning confirms Cramer's positive thoughts about the company.
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Cable modem loser? Backing second-rate xDSL technology? Beaten back by AT&T (T) - Get Report?

Or one more buying opportunity for

America Online

(AOL)

?

Judging from premarket action, the answer is the latter. Mary "No strong buys" Meeker just went from outperform to strong buy on AOL, and you can see the stock ripping through the 130s in SST-like fashion thanks to this

Morgan Stanley

push.

Last week, when I

wrote positively about AOL, my mailbox exploded with email about how AT&T had destroyed AOL, like it was some sort of playoff game that had been decided and AT&T had advanced to the finals while AOL got sent back to play golf. Made me buy more.

You can't write off AOL. I have a T-1 connection, ISDN service, a cable modem and a 56K modem (all to access

TheStreet.com

), and I have never -- even for a moment -- entertained the notion of junking AOL. I love the instant-messaging function (it is how we communicate at

Cramer Berkowitz

) and the overall ease of AOL.

And I love that it has beaten

Microsoft

(MSFT) - Get Report

so far in this battle -- and hasn't taken Microsoft's billions to keep technology handcuffed to Windows or whatever else Ballmer might be cooking up to keep the shackles on all of us. (And I am long 'Soft!)

So, obituary writers, take that Meeker upgrade and remember the pain it caused you. And think twice before you bet against AOL because of some deal or combo that everybody has forgotten already.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Microsoft and America Online. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

letters@thestreet.com.