Jim Cramer Blog

Fact: Google is one of the fastest growing companies in the world. Fact: They have the capability of being mentioned in the same sentence as Microsoft in terms of their ingenuity and buying power in the tech industry. Fact: Google needs to grow up before any type of legitimate investor will again consider them as a good investment. Last week the CFO of Google came out and decided to disclose unsubstantiated financial aspirations. Those statements drove the stock down close to 10%. But, I thought Google was one of those "New Age" companies that don't believe in the so-called "Norms" of business. They won't give guidance and they won't cooperate with the US Government because of privacy issues. They will cooperate with the Chinese government, which I don't have a problem with under the circumstances. The founders of Google, whom I have the utmost respect for, need to change the way they deal with their investors. I was, at one point, a large investor in Google. As of today, I have sold my entire position because I honestly do not know what to think. It the company still growing as fast, or is growth slowing? What are next quarters' expectations? There weren't estimates this past quarter and look what happened to the value of the stock. How can an informed investor truly believe that Google is a good investment if they have no guidance or expectations whatsoever? How can they beat the street? How can one gauge if their investment can be legitimized? The answer is: they can't. Google needs to change their investor relations and until they do, expect this stock to at most tread water.