DOJ Google suit takes Alphabet from ‘buy to strong buy’

CNBC’s Jim Cramer said Tuesday that Alphabet would go from a “buy to a strong buy” if the government’s expected antitrust lawsuit against its Google unit were to lead to a break up.

“I just think it’s another ‘loser case’ by the government. And by the way, the sum of the parts is worth far more than $1,500,” Cramer said on “Squawk Box.”

The “Mad Money” host said he believes the Department of Justice is likely to struggle to prove its case that Google abused its market power in its search and advertising business.

Cramer said Alphabet shareholders would be winners if the government were to force Google-parent to split up.

“I’ve been saying over and over again, they ought to break this company up and bring out value. It’s the DOJ taking it from buy to strong buy,” he said.  “Ultimately, Google, if they break it up, then you own the stock. If they don’t break it up, then you own the stock. It’s a pretty good situation.”

Shares of Alphabet were up 1% on Tuesday. The stock is up about 15% in 2020, outpacing the broader S&P 500, which has advanced nearly 7% year to date.

Eleven Republican state attorneys general joined the DOJ as plaintiffs in the case, according to an open docket of the case filed Tuesday morning.

The litigation marks the government’s most significant antitrust move since its groundbreaking case against Microsoft more than 20 years ago.

The suit could be an opening salvo against Big Tech, given ongoing investigations of other companies, including Apple, Amazon and Facebook at the DOJ and the Federal Trade Commission.

Cramer said Google will be ready for the lawsuit with a high-quality legal team. He also noted it is not clear whether the government would even be pursuing a break up of the company as part of the antitrust action. But, he added, “if the Department of Justice is going that route, then they’re just a great investment banker.”

The Green Agenda IS the Great Reset

The Green Agenda IS the Great Reset

The green agenda IS the Great Reset. One of the few political leaders who gets this is President Donald Trump. On Sunday he warned in a video statement from the White House to the Group of 20 summit hosted by Saudi Arabia that the Paris Climate Agreement was ‘not...

Bloomberg Backs Former Miami Mayor to Head Florida Democrats

Bloomberg Backs Former Miami Mayor to Head Florida Democrats

Billionaire Michael Bloomberg has expressed his backing for former Miami Mayor Manny Diaz to lead the foundering Florida Democratic Party, Politico reported on Tuesday. It‘s a job many others are not interested in, after President Donald Trump trounced the Democrats...