Jim Cramer Advocates for Alphabet to Emulate Apple in Streamlining Projects

Renowned financial expert and television host Jim Cramer has publicly advised Alphabet Inc. GOOG, the parent company of Google, to consider adopting a business approach akin to that of Apple Inc. AAPL by trimming down on non-lucrative ventures. Cramer, who is recognized for his insights on the stock market and investment strategies on CNBC's 'Mad Money,' explicates that this shift would lead to enhanced profitability for Alphabet.

Alphabet's Current Business Model

Alphabet, a global technology conglomerate headquartered in California, was founded via a restructure of Google on October 2, 2015. The entity oversees Google as well as a group of subsidiaries that originated within Google. The co-founders of Google maintain significant influence within Alphabet, serving as controlling shareholders, board members, and active employees. As the fourth-largest technology firm in revenue worldwide, Alphabet stands as a formidable entity in the tech market.

Apple's Profit-Focused Strategy

On the other hand, Apple Inc. AAPL, an American multinational technology organization, focuses on consumer electronics, computer software, and online services. Apple not only tops the charts as the largest tech company by revenue, achieving $274.5 billion in 2020, but also holds the title of the world's most valuable company since January 2021. The company is also recognized as the fourth-largest in both PC sales and smartphone manufacturing. It features among the Big Five American IT corporations, which includes other giants like Amazon, Google, Microsoft, and Facebook.

Cramer's Vision for Alphabet

Jim Cramer emphasizes the significance for Alphabet to enhance profitability by emulating Apple's example in cutting back on inefficient projects and refocusing on core revenue-generating activities. This strategic alignment, Cramer suggests, could bolster Alphabet's financial standing and investor confidence. By streamlining its extensive project portfolio, Alphabet could potentially realize improved cost management and financial returns, much like its counterpart Apple has demonstrated.

Cramer, Alphabet, Apple