Cramer is Taking a Break on Google (GOOG, YHOO)

On tonight’s MAD MONEY show on CNBC, Cramer said he is taking a break on Google (GOOG-NASDAQ).  He has noted that it was a tech exception before, and he said he is not backing away from his $600 target.  What he did say is that it is right now acting as a marked-time stock and it needs to fall down to $450.00.  If you hold it right now he thinks you won’t have much upside in the immediate future.  He still thinks it is the best web search company out there, but he thinks there are 3 Internet stocks that can offer more upside from the Google withdrawals.  If you have been reading about Cramer or watching him regularly, you will know that he sort of started changing his wildly bullish stance early in February. GOOG fell 0.3% in after-hours after falling 1.2%.

His #3 pick is Yahoo! (YHOO-NASDAQ) with better upside. Panama is working well for the company, and Cramer was showing this after the comScore data this morning.  He admitted that the YHOO stock is a lot hotter than the company.  YHOO shares gained 0.8% to $32.40 in after-hours trading.  As a reminder, this is roughly $10.00 higher than its lows.  Cramer also thinks that the company warned twice and it can actually beat the lowered estimates.  Cramer said that if Semel would resign, this stock could still rise  big if he stepped down.  He is still on our list of CEO’s that need to go, now we’ll have to see if he stays.

Cramer will have his #2 pick you can use instead of GOOG, but he won’t give the real #1 pick until later this evening after the lightning round.

Jon C. Ogg
February 26, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.