Market players should consider getting into shares of
, Jim Cramer said on TheStreet.com TV's Wall St. Confidential
Web video Monday.
Last quarter, Google was at about $545 a share before it reported earnings, he said. People expected a big upside surprise, and when they didn't get it, the stock got "sandwiched" down to around $510.
"The big push down was by shorts who were immediately coming in and saying this was the first bad quarter," Cramer said. "Those people probably did not cover, and now you're looking at a stock that sells at 30 times earnings and is growing at 33%."
Google, he continued, has become a very cheap stock and it's going to have a blowout quarter. There is only a handful of 20% to 30% growers out there, and Google is one of them, Cramer said.
"There's a $600 billion advertising market out there and they have a couple percent of it," he said. "I think it's really reasonable to think they can have 10% of it."
As Google goes from under $10 billion to $60 billion in revenue, investors should just be in the stock, and those who don't want to be in the stock are just not doing their homework, Cramer said.
While he called Amazon the most expensive of his four horsemen of tech, with gasoline prices high, state taxes going up and no taxes at Amazon (all pluses for Amazon), "this will be the Amazon Christmas that we thought would have happened in 2001," Cramer said.
"It's six years late, but the leverage here, the money that's going to fall to the bottom line, may be the greatest leverage of any single company I follow, including the steel companies, which have gigantic leverage right now because pricings gone up and their fixed cost is low."
However, Amazon is not a cheap stock, he stressed. Cramer said he knows people in Amazon who are playing it because of short-busting, but he doesn't like the short-busting game. One of the things he's learned about shorts, he said, is that they're "tenacious" and very rarely cover unless they have to.
"Don't buy Amazon for the short-bust," Cramer advised. "Buy Amazon for the leverage to the bottom line."
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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