Jim Cramer Says Generative AI Poses ‘Existential Threat’ to Google Search

From Yahoo Finance: 2025-04-10 12:28:00

Jim Cramer calls the market decline “man-made” and analyzes 15 stocks. He emphasizes calm amid chaos, rejecting fears of a global financial collapse. Cramer attributes the downturn to leadership decisions and tariffs, warning of deeper agendas to reverse globalization. He outlines the challenges for Trump’s strategy to succeed.

Cramer expresses concern over generative AI posing an “existential threat” to Google’s core search business. He fully exits his position in Alphabet Inc. (GOOGL), categorizing it in the bottom tier of the Magnificent 7. Cramer cites macro risks tied to advertising and the potential impact of AI on Google’s search capabilities. Many younger people are skipping Google and using ChatGPT. Google Search is a $200 billion business, but could suffer in a recession. Jim Cramer also believes Alphabet Inc. (NASDAQ:GOOGL) may not be the best investment compared to other AI stocks with higher potential returns. Check out the cheapest AI stock for more promising options.

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