Cramer: Why Silicon Valley is cautioning against Snap - CNBC

Many executives cautioned Cramer that the Snap IPO could be a bust or that shares would be parceled out in small amounts so that the stock has a big initial pop and cause it to be viewed as a second-rate Facebook.

"I detected strong jealousy, however, about Facebook's ability to hire the best people in the valley," Cramer said.

There also seemed to be universal love for Alphabet. Most tech executives admire its ability to hone search, its superior advertising model and impressive ancillary product.

For instance, Alphabet put down thousands of miles of fiber and opened data centers for companies to tap into as an alternative to Amazon. Given that many companies live in fear of Amazon, this fiber has now become a hidden source of lucrative traffic, Cramer said, including the $400 million a year that Snap will pay to use their cloud, not arch-rival Amazon's system.

"Alphabet barely gets any respect for this business. The negative research on the company barely mentions this treasure trove of payback, and I think the story is still in its early innings," Cramer said.
Better yet, Alphabet's autonomous driving business, called Waymo, could dominate the business in the same way that Microsoft used to dominate software. Yet, it seemed to Cramer that Waymo isn't even factored into the estimates for Alphabet.

Both Intel and Cisco Systems gained Cramer's attention, too. He realized that Intel is a much bigger competitor to Nvidia than initially thought. Cisco showed its stripes as the most transformed company in the tech industry, too. It is moving quickly to recurring revenue via subscription model for Wi-Fi, cybersecurity and through its AppDynamics acquisition.

Sadly, Cramer heard nothing about Twitter, even after his interview with COO Anthony Noto. There seemed to be a large belief that either the board isn't engaged, or it would force its part-time CEO Jack Dorsey to pick one company to run, either Twitter or Square.

There just aren't enough hours in the day for him to do a good job of running both companies and too many users leaving the platform for Cramer to recommend the stock, unless it gets a takeover, which seemed unlikely. Plus, some members of the board don't even Tweet.

"Amazon, oddly, is the most worshipped of of the entire flock, incredibly ironic given it isn't even located there ," Cramer said.

Questions for Cramer?Call Cramer: 1-800-743-CNBC
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Source: This article was curated from the original written by Abigail Stevenson and can be read here:

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