RealMoney Radio Recap: Web Wake-Up

Cramer says old media missed an opportunity with YouTube.
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"The digital revolution has changed the way we are informed and entertained, and it has forced old media companies to change the way they do business," Jim Cramer said on his

"RealMoney" radio show Tuesday.

Verizon

(VZ) - Get Report

is reportedly in advanced talks with

YouTube

to distribute the site's videos on cell phones and TVs, Cramer said.

While Verizon has been spending money on buybacks, if it had bought YouTube, it would have sent market players the message that it is "forward-looking and clearly making a commitment to the Web," he said.

Instead, Cramer said it makes him "crazy" that

Google

(GOOG) - Get Report

bought it because it was the opportunity for an offline company to become online.

"But the offline guys still aren't committed," he said. "They're still hiring people to assess the Web and make small acquisitions."

The only exception is

News Corp

(NWS) - Get Report

, which Cramer owns for his charitable trust,

Action Alerts PLUS.

"News Corp stepped up to the plate and bought

MySpace,

and it has been huge for it," he said.

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On the other hand, if Verizon had bought YouTube, "it would

instead be Google paying Verizon to license content," Cramer said. "In the end, it would have been a price-to-earnings expander for Verizon."

Market players will hear and read about "all sorts of attempts to monetize every gadget and every program, but the only kind of model that works is where you don't have to pay for the hardware or the content," he continued. "Google has this model."

In the deal Verizon made with YouTube, Google will do nothing, but in the end it will get compensated.

"That's my kind of deal," Cramer said.

Google is the "winner," and its stock "should be bought," Cramer said.

Master and Commander

MasterCard

(MA) - Get Report

has been an "unbelievable story" that has doubled since its IPO, Cramer told listeners.

"

Crocs

(CROX) - Get Report

is the next MasterCard and is going higher," Cramer went on to say. "It's a major brand that is making a push overseas."

Moreover, the shoemaker's stock is going to $50, with the "shorts scrambling and the longs buying," he said. Crocs was recently trading at $44.56.

Hungry for Homebuilders

The homebuilding sector is "ugly," but when a company like

Toll Brothers

(TOL) - Get Report

goes up after reporting a bad number, "people must change their thinking about homebuilder stocks," Cramer said.

It might be hard to stay positive when news is so negative with homebuilders slowing construction and places being overbuilt, but market players must think like "stocks guys," not "housing guys," he stressed.

Toll Brothers' stock increase is not "idle," Cramer said, "The housing group is in the process of bottoming."

"Homes are levered to employment, not supply and demand long-term," he continued. "If unemployment stays low and the rates stay low, we will work out the supply, and when the supply is worked off, the stocks will catch a rally."

Cramer said he would buy

KB Home

(KBH) - Get Report

,

Lennar

(LEN) - Get Report

and Toll Brothers as they pull back.

In addition, "

Boeing

(BA) - Get Report

is about to break out of its range" because

FedEx

(FDX) - Get Report

, a "gigantic user" of

Airbus

, canceled its order with Airbus and placed a larger order with Boeing, Cramer said.

"When other companies break ranks, I believe Boeing will be able to raise price," which will cause the company's gross margins and earnings to consequently go up, he said. "Go buy some Boeing."

Liking Lockheed

Lockheed Martin

(LMT) - Get Report

is a "very cheap stock," Cramer told a caller.

There's room for the stock to run here, but it's not moving because people feel if the Democrats take over, they'll cut spending in the defense budget, and Lockheed will be affected, he said.

"If you like it and own it, stick with it through the election," but be aware there might be a hiccup in it on Wednesday, Cramer warned.

"I would hold

Starbucks

(SBUX) - Get Report

" because it's going to make people money, he told his next caller.

Hold on to it and buy it during any weakness, Cramer said.

People who buy

Commerce Bank

(CM) - Get Report

and hold it will be rewarded over time, but not immediately, Cramer told his next caller.

"It is well-run, and it's where I bank," he said. "It's a really good hold."

When another caller asked about

SAIC

(SAI)

, Cramer said this stock is dependent on the elections.

If the Democrats take both the Congress and the House, SAIC will go down, he said. If they just take over the House, it will go down, but it won't stay there.

"I want you to hold it," Cramer said.

He told his next caller he is "behind

Cisco

(CSCO) - Get Report

" and is not worried about its quarter.

Rather than

JDSU

(JDSUD)

or

Conexant

(CNXT) - Get Report

, Cramer advised sticking with Cisco.

"Hope

that it comes down and buy more," he said.

Cramer called

Apple

(AAPL) - Get Report

"the best hardware story out there other than

IBM

(IBM) - Get Report

" and told a caller it is "doing extremely well."

At the time of publication, Cramer was long News Corp.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, 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

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