Skip to main content

This column was originally published on RealMoney on Feb. 16 at 3:05 p.m. EST. It's being republished as a bonus for readers.

So I get it.



worth only 40 times next year's $8 number. It's only worth 36 times 2007's $9 number.

That's the math, bears and bulls. That's what you are looking at after all the click fraud and the Justice Department head and the rates that are allegedly too high and all of the new gizmos coming onstream that are so terrific.

No matter that I actually believe that Google can earn $9 this year and $11 next year. Nor does it matter that I believe click fraud is a minor issue, that the Justice Department is, in the end, owned of, by and for corporations -- including Google -- or that I believe the rates are just right and there are plenty of companies willing to pay. Nor does it matter that I believe the most exciting stuff coming from Google is the virtual elimination of the Yellow Pages as an entity. Nah, the bears have it down pat. We certainly should want to pay less than for a

Whole Foods


or a

Network Appliance


or even an



, for that matter, for this 30%-plus grower.

Image placeholder title

I listen to the logic, I hear what the bears are saying, but I keep coming back to the bizarre notion that there is some price to be paid for owning Google and it is a price that has to be in excess of all of those fine firms because, even with the haircut mentioned -- one that I am fairly confident will never happen, but so what -- we still have a stock that deserves to be


, not lower. Remember, you must always put yourself in the heads of the portfolio managers who simply must make a decision about buying or selling a $100 billion stock, particularly one so likely to be added to the

S&P 500


Believe me, most of these managers don't want to be involved. It's a pain to trade. The bears own the media on this stock, including the major news organizations away from business, and Eric Schmidt, the guy who runs it day-to-day has a lineage that lacks any substance:

Sun Micro






But valued it will be, and valued by only what the PMs know how to value: relative growth.

So bears, do a



on this -- which means, lay all over it with short stock until people get beleaguered. I believe you should declare victory and cover because I don't believe the stock's going to see $300 anytime soon, because those multiples on those earnings simply make no sense vs. the rest of the high-growth universe.

Or, you can invest like Mssrs. Abelson and Hickey and just say, "Investors be damned!" Never worked for me as a strategy, but then again, I was a lowly hedge fund manager, not a writer of big-time articles or a source for them.

Random musings:

I continue to be impressed with the quality of the Breakout Stocks names from Will Gabrielsi and Michael Comeau. Maybe that's because any time I go online -- weekends, nights, whatever -- I see them online doing research, original research. It's hedge fund quality without the hedge fund fees!

Click here to take a free trial of this fantastic service.

P.S. from Editor-in-Chief, Dave Morrow:

It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our

free trial offer



premium Web site, where you'll get in-depth commentary


money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice --

try it now.

As originally published, this story contained an error. Please see

Corrections and Clarifications.

At the time of publication, Cramer was long Sears Holdings.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from