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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.”

While we acknowledge the risk and potential of PLAY 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 PLAY 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.

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

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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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