Jim Cramer on Goldman Sachs: “I Want You to Hold on to That”

The Goldman Sachs Group, Inc. (NYSE:GS) was among Jim Cramer’s stock calls on Mad Money, as he highlighted the AI opportunities in neoclouds. When a caller inquired about the stock, Cramer remarked:

I think that, at 17 times earnings, I know this sounds strange… But you know what? It may actually be just as cheap when I recommended it at $100 when I looked at the earnings. This company could easily go to $1,700 without a problem and still not be expensive. I want you to hold on to that tiger just as we’re doing for my Charitable Trust, which has been involved in it for a very long time.

Photo by Joshua Mayo on Unsplash

The Goldman Sachs Group, Inc. (NYSE:GS) provides financial services, including investment banking, asset and wealth management, and banking solutions. During the June 17 episode, Cramer highlighted positive catalysts for the company, as he commented:

Right now, the bond and stock issuance, it’s just stupendous… It feels like everybody needs to borrow. I mean, NVIDIA, with one of the best balance sheets in the country, just raised $25 billion in the debt market. Banks profit immensely from these bond issues, and they have almost no risk whatsoever. IPO is a fantastic source of profit, too. And they make a fortune from takeovers at a time when we’ve seen $1.2 trillion in public and private mergers in the first five months of the year.

That’s like so much more than the last year. The advisory fees from these transactions are insane. Goldman Sachs and Morgan Stanley are crushing it in these categories. Plus, the big hyperscalers may have to keep raising money just to compete against each other. That means more business for the investment banks, just a fountain of profits.

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