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Jim Cramer on Deckers: “I’m Not Ready to Throw in the Towel”

Deckers Outdoor Corporation (NYSE:DECK) is one of the stocks listed in our article, Jim Cramer recently discussed these 10 S&P 500 stocks. Diving into the reasons behind the stock’s decline, Cramer said:

“The biggest loser in the S&P 500 in the first half was Deckers Brands, down 49%. Now, this company… the parent of UGG, HOKA, and Teva, used to be one of my faves. HOKA is a terrific sneaker brand. And from the end of 2019 through the end of 2024, this stock shot up 622%.

But now Deckers has nearly been cut in half over the last six months, in part because the whole consumer discretionary category has become much less attractive, given the global trade war. And in part because when Deckers reported in late May, their guidance was awful, and growth at the key HOKA brand slowed dramatically. So, investors simply gave up on this one. But is Deckers really all that bad? Is it a lost cause? I’m not ready to throw in the towel. Why? First off, the stock’s gotten incredibly cheap. It now sells for just 17 times this year’s earnings estimates.

While I don’t like that the earnings are on track to decline this year, I’m also cognizant of the fact that Deckers has beaten the earnings estimates for 14 consecutive quarters, usually by a substantial amount. So maybe it won’t be a down year. However, I’d feel a lot more confident in Decker’s comeback if we could somehow get some clarity on President Trump’s tariffs. These guys do a ton of manufacturing in Vietnam, and we don’t know if Vietnam will end up with a baseline 10% tariff or something close to the 46% tariff that the President proposed on Liberation Day.”

A customer browsing a retail store, finding the perfect footwear for their casual outfits.

Deckers Outdoor (NYSE:DECK) provides a range of footwear, apparel, and accessories. The company’s product portfolio features premium UGG items, performance footwear from HOKA, and casual shoes and sandals under brands like Teva, Sanuk, Koolaburra, and AHNU.

While we acknowledge the potential of DECK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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