Cramer: DOJ’s antitrust lawsuit against Google takes parent Alphabet from ‘buy to strong buy’

Investing

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 proving its case that Google abused its market power in its search and advertising business.

Cramer said that 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.  

Shares of Alphabet were up nearly 1%.

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 both the DOJ and the Federal Trade Commission.

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