8 Stocks on Jim Cramer’s Radar: CoreWeave, Vertiv, and Need for Lower Interest Rates

4. Shopify Inc. (NASDAQ:SHOP)

Shopify Inc. (NASDAQ:SHOP) was among the stocks on Jim Cramer’s radar as he highlighted the importance of lower interest rates in sustaining the broader market rally. Cramer addressed the AI worries around the stock, as he stated:

That quarter looked pretty… good to me. I think the stock got punished because Wall Street has no patience for any kind of software company that might potentially be challenged by AI at some point in the future. When you look at the numbers, Shopify beat expectations on every single key line… I think Shopify’s outlook is on the conservative side because these guys do practice UPOD or under promise and over deliver. The company’s beaten revenue expectations for 15 quarters in a row. I bet they can do 16. In the end, the worst thing I can say about Shopify is that okay, it’s still fairly expensive… It’s trading at 55 times this year’s earnings estimates… But man, Shopify’s on track to grow earnings at a 29% clip this year, meaning it’s trading at 1.9 times the growth rate. Okay, on the high side, but it’s not unreasonable…

Here’s the bottom line: Shopify keeps getting crushed by AI displacement worries, but I don’t believe it’s an actual AI displacement victim. The company keeps putting up excellent numbers and not getting credit for them. To me, this is a textbook example of a stock that keeps getting cheaper, not more expensive as it goes lower. Down here below $100, I think Shopify’s a steal. Okay, I’ll grant you, if it does go lower, I would buy more on a five-point scale down, 92, that’s, you know, then 87. But you know what? I cannot imagine this stock almost getting cut in half again. I don’t think that’s going to happen.

Shopify Inc. (NASDAQ:SHOP) provides a commerce platform that helps businesses manage products, orders, payments, and customer relationships.