Why did Alphabet stock decline in Q2?

Cramer did not specify a reason but indicated the decline is temporary and due to general market factors.

Did Alphabet recently raise funding?

Yes, Alphabet successfully completed a massive fundraising recently, boosting its ability to pursue acquisitions.

Jim Cramer: Alphabet Stock Still Cheap Despite Q2 Dip

Jim Cramer on Mad Money said Alphabet (GOOGL) is still cheap after its Q2 decline, highlighting the company's recent massive fundraising. He believes the stock could benefit from the upcoming takeover wave.

July 3, 2026

2 min read

Source: Insider Monkey

Financial analyst Jim Cramer, host of CNBC's Mad Money, said Alphabet Inc. (NASDAQ:GOOGL) remains undervalued despite its decline in the second quarter. He noted that Google's parent company recently completed a massive fundraising, strengthening its financial position.

Recommendation Change

Cramer did not announce an official rating change but reiterated that the stock is cheap relative to its potential. The stock currently trades at a P/E ratio of about 25x, below the sector average.

Analyst's Rationale

Cramer attributed the Q2 decline to temporary factors, while the company is poised to benefit from a wave of takeovers. "Alphabet has significant liquidity and the ability to finance large deals, putting it in a strong position to seize opportunities," he said.

Context

Alphabet's Q2 performance lagged behind tech peers, but the stock is still up about 15% year-to-date. Other analysts expect strong Q3 results.

Conclusion

Cramer's comments reflect confidence in the company's strong fundamentals, but investors should consider regulatory risks and intense competition in digital advertising.

Frequently Asked Questions

Jim Cramer believes Alphabet stock remains cheap despite its Q2 decline and is well-positioned to benefit from the upcoming takeover wave.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.