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Jim Cramer Highlights His “Problem” With Robinhood

Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the stocks that was on Jim Cramer’s radar recently. When a caller inquired about the stock during the episode, Cramer said:

Here’s my problem with Robinhood. It sells at 30 times earnings, but it has way too much business that I think is crypto. And until they get so that the balance is less crypto and more say equities and bonds, I think it’s going to be too volatile, and it’s going to trade like Bitcoin.

Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial platform that allows users to trade stocks, ETFs, options, cryptocurrencies, and other assets. Cramer discussed the company while presenting his game plan during the episode aired on February 6. He commented:

After the close, Robinhood reports. People are starting to get unnerved by how closely aligned this stock is with the price of Bitcoin. Even after today’s dramatic rebound, Bitcoin still feels like it’s lost its luster. The precipitous decline of the cryptocurrency occurring at the same time as a weakening dollar calls into question whether it’s a real store hold of value or even a hedge against inflation. We know nothing. We used to think it could be a currency. That’s obviously not going to happen. It’s a great speculative asset, I guess, until it started plummeting. So Robinhood may be the repository of something that’s become toxic, and I think a lot less dependable.

While we acknowledge the risk and potential of HOOD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HOOD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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