Jim Cramer on Zoom Communications: "I Just Lack a Catalyst about why to recommend it"

Zoom Communications Inc. (NASDAQ:ZM) is one of the stocks Jim Cramer was asked about. A caller inquired about the stock, noting that it is gaining traction and has a P/E ratio of approximately 22. In response, Cramer said:

“Look, I think Zoom is a good company. It’s got consistent cash flow. It’s doing fine. I just lack a catalyst about why to recommend it, so therefore, I’m going to take a pass.”

Zoom Communications Inc. (NASDAQ:ZM) provides an AI-based work platform with video meetings, phone, chat, and collaboration tools like Zoom Docs and Whiteboard. A caller asked about the stock during the May 19 episode and Cramer responded:

“I think Zoom’s last quarter was actually pretty good. They do have some good apps. My stepson worked there in fairness to fully disclose and I really like them very much and I think they’re doing a lot right, but it’s taken them a very long time.”

It is worth noting that the company’s stock price has remained almost unchanged since the above comment was aired.

While we acknowledge the potential of ZM 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: 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.