Shortly after the opening bell, we will exit our position in Alphabet , selling 400 shares at roughly $153. Following the trade, Jim Cramer's Charitable Trust will no longer own a position in Alphabet. We are selling the rest of the smallest "Magnificent Seven" position in the portfolio. During our March monthly meeting , Jim discussed his concerns about Alphabet's lucrative and dominant search business being hurt by the rise of generative AI chatbots such as ChatGPT. "I am torn on Alphabet," Cramer said. "I think Google is being cannibalized by Gemini and hurt by Grok and ChatGPT both of which are superior. But it does have Waymo and YouTube and the latter is doing incredibly well." YouTube and Waymo may be great stories, and analysts at MoffettNathanson wrote Monday morning that YouTube could be worth $475 billion to $550 billion on a standalone basis. However, Google's search business makes up more than half of the company's total annual revenues and is the main source of its profits. And since we believe there is long-term secular pressure here, we do not want to own the stock. Last week, analysts at Melius Research published a chart showing how weekly active users of OpenAI's ChatGPT have soared since December. Although Melius cited Alphabet data showing there hasn't been a deterioration in annual search queries, the main issue is that younger people are starting to prefer using AI-first search models over Google. In addition, an influential personal technology columnist at The Wall Street Journal published a story last week detailing how she now prefers to use AI models instead of Google Search and does not plan to switch back. Old habits die hard, and Google as a verb will be hard to shake. But these AI models are only going to get better and more sophisticated, pressuring Search even further. Due to this concern, we believe it is best to move on from this position. We will realize an average gain of more than 100% on our remaining shares. We now only own five of the Mag 7 stocks: Amazon , Apple , Meta Platforms , Microsoft , and Nvidia . (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
