Jim Cramer on Dave & Buster’s: “Jeez, That Stock is So, So Low

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is one of the stocks Jim Cramer recently discussed. Regarding the stock, a caller asked if it is a bear market trap or if it has the potential to become a multibagger within the next 18 months. In response, Cramer said:

“Wow. Holy cow. Jeez, that stock is so, so low. You know, look… [it] reconfigured when private thing came public, I have to do work on it. I cannot be so cavalier as to say not to worry about it. I got to do homework, it’s too difficult a situation for me to say, yeah, I bless it.”

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) operates entertainment and dining venues that include food, drinks, and interactive games for adults and families. Patient Capital Management stated the following regarding Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) in its Q1 2025 investor letter:

“Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) trended lower over the first quarter as the market continued to worry about revenue visibility. The company had a disappointing 2024, culminating in the abrupt departure of then-CEO Chris Morris. Founded in 1982 in Dallas, Texas, the company has expanded to over 200 venues in North America across two brands (Dave & Busters, and Main Event). The company is in the middle of a multi-year transformation focused on reinvigorating growth through store remodels, store expansions, and technology upgrades while enhancing margins through cost optimizations and synergies. Despite the efforts, the results haven’t yet materialized in the numbers as the challenging macro environment continues to weigh on consumer expenditures. In the meantime, an activist, Hill Path Capital, has built up a position in the company and taken two board seats. With the Chairman of the Board stepping in as CEO, we are already starting to see improved results with the focus on a back-to-basics strategy delivering better than expected results in March and April. While the timing of business model inflection remains uncertain, what’s clear is the stock is trading at an all-time low valuation of 6.8x forward earnings. As the company works to improve its operations, they’ve been actively returning cash to shareholders through buybacks, repurchasing 12% of shares outstanding over the last 12 months.”

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