Jim Cramer's Investment Moves: Selling Cisco, Buying Alphabet

On February 10, 2026, Jim Cramer announced two significant trades in his Charitable Trust portfolio. The first involved selling 100 shares of Cisco Systems (CSCO) at approximately $87 each, reducing its portfolio weighting from 2.18% to about 2%. This sale follows a notable 18% increase in Cisco's stock since its last earnings report in mid-November, significantly outperforming the S&P 500's 2% gain during the same period. Cramer cited concerns over Cisco's high valuation, with a forward price-to-earnings multiple of around 20, as a reason for taking profits.

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In contrast, Cramer used the proceeds from the Cisco sale to purchase 30 shares of Alphabet Inc. (GOOGL) at roughly $318 each, increasing its weighting in the Trust from 0.95% to 1.2%. This decision comes after Alphabet's stock experienced a 4% decline following its recent earnings report, despite strong performance indicators, including a 16.7% year-over-year growth in Google Search revenue and a 48% increase in Google Cloud revenue.

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Cisco's recent performance has been bolstered by accelerating orders from hyperscale customers and enterprise campus refreshes. However, Cramer expressed caution regarding Cisco's security business, which has underperformed in recent quarters. He noted that while management raised its full-year outlook last quarter, the stock's current high valuation may invite increased scrutiny during the upcoming earnings report.

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Conversely, Alphabet's financial outlook has raised some concerns among investors. The company announced capital expenditures for 2026 projected between $175 billion and $185 billion, significantly higher than the $120 billion analysts had anticipated. This increased spending is expected to impact free cash flow, which generated about $73 billion in 2025. Despite these concerns, Cramer highlighted Alphabet's expanding backlog and strong search advertising revenue growth as indicators of its potential to effectively monetize its investments.

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Market analysts have expressed mixed feelings regarding Alphabet's aggressive investment strategy. While some view the increased capital expenditures as a necessary step for long-term growth, others worry about the immediate impact on cash flow and the company's decision to take on debt, including issuing a new 100-year bond. This has led to a degree of market hesitation regarding Alphabet's future performance.

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• “The market has become a little anxious about whether these big bets will pay off, but we look to things like a rapidly expanding backlog, increased product engagement, and stronger search advertising revenue growth as signs that Alphabet has become the best of the Magnificent Seven megacap tech names at monetizing its investments.” — Jim Cramer, on Alphabet Inc.

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In summary, Jim Cramer's recent investment decisions reflect a strategic shift in his Charitable Trust portfolio, balancing profit-taking from Cisco with a renewed investment in Alphabet amid mixed market sentiments.

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