Jim Cramer on AppLovin: “I’m Not Lovin’ as Much”

AppLovin Corporation (NASDAQ:APP) is one of the stocks Jim Cramer was asked about. A caller inquired if Cramer still “loves” the stock, and he replied:

“Okay, AppLovin, I’m not lovin’ as much. It’s had a very, very big move to the point where it sells at 77 times earnings. I think you have to sell half of the stock when it gets there. There’s just too much risk, up 77%, with all these stocks that are, even though this is a company that makes a lot of money, I just don’t like that price-to-earnings multiple. And if you go to How to Make Money in Any Market, it’ll explain exactly why I said the multiple’s too high.”

A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels

AppLovin Corporation (NASDAQ:APP) provides a software platform that helps advertisers and app developers market and monetize their content. The company offers advertising solutions, analytics tools, connected TV services, and mobile games. During the November 11 episode, a caller asked Cramer’s advice on whether they should hold, sell, or add to their position in the stock. He replied:

“Okay, I think AppLovin is an amazing company that is just making a ton of money, and I like it very much. That makes me, I’m in a minority of the so-called professionals, but I think it’s a very, very good company, and people don’t understand. It knows how to make money better than almost any company on earth.”

While we acknowledge the risk and potential of APP 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 APP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.