Now, Google has its own programming and its own ad-serving system, and the great thing about the latter is also the bad thing: Google gives the advertiser a bargain but hurts the content providers, including itself. Unless you have a proprietary product with a proprietary ad sales force to sell that product in a way that can't be compromised by what's known as programmatic selling -- a cheap form of advertising in which you carpet-bomb every site imaginable, and the purveyors of the sites are offered a take-it-or-leave-it deal, and most take it -- you aren't going to make as much money as you should. Incredibly, Google has created a monster here that only Facebook right now is immune to, hence the incredible run that Facebook is having. But Google said it is just a quarter behind in doing this itself. Why should we not take Google at its word? I believe it has the smarts to figure this out.
That's why, even as Facebook soars here, I believe Google at this point is the better buy. Yes, you may have to buy it in a stock-replacement way, using deep-in-the-money calls to get some bang for the buck, but right now there is no doubt in my mind that it is the cheaper stock to own, if you are willing to own it until the next quarter is reported. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long FB.