"The problem, though, is that Google has lots of forward-looking projects, truly venture-stage efforts that shouldn't be squelched by Porat, because, with a little nurturing, they could pay off gigantically someday," Cramer said.
The solution? Break them out, just like Amazon did with its Web services division.So the money loser (at first) projects can have visibility and don't drag down the core business. You also get a look at these projects while they are being developed and nurtured by looking at the other businesses group that contains Nest, Fiber, the Venture Capital arm, etc. I would love to see what smaller apps that Venture Capital arm is bankrolling to see what could take off. Too bad I couldn't get back in at $550 but 10 shares might become a core holding going forward.
Cramer thinks this will allow the huge and fast core business to shine within Alphabet. This way, investors can clearly understand what Google is and why it is worth so much more than anyone thought.