"Gap (GAP) Is Trying To Move But They Can't," Says Jim Cramer

We recently published Jim Cramer Discussed These 25 Stocks In An Important Show About AI Spending. The Gap, Inc. (NYSE:GAP)is one of the stocks Jim Cramer recently discussed.

The Gap, Inc. (NYSE:GAP) is a well-known apparel retailer. The firm’s shares have gained a mere 1.7% year-to-date as it undertakes a turnaround. Cramer has discussed The Gap, Inc. (NYSE:GAP)’s turnaround several times in 2025. For instance, in May, he commented that the firm’s CEO Richard Dickson was finally being appreciated by the market for his efforts. More recently, Cramer remarked that he continued to believe in The Gap, Inc. (NYSE:GAP)’s long-term turnaround. With Dickson now having spent two years at the firm, in this show, Cramer simply remarked that while The Gap, Inc. (NYSE:GAP) was trying to move, it was finding it hard to do so:

“[On JPM writing about a squeeze in cyclicals and industrials] Yeah Gap is trying to move but they can’t, remember that [inaudible] hurt them a dollar and half for the stock.”

In March, Cramer discussed The Gap, Inc. (NYSE:GAP)’s turnaround strategy in detail:

“We’ve got, GAP up seven. Banana Republic up four. Old Navy up three. These are almost double what people would expect. In some case, GAP, the flagship, more than double. A lot of people say wait a second is it going to make any money . .tariffs, only 11% of its goods are made between Mexico and China. Uh, this man has taken this company, he came on first, he said listen I gotta fix the balance sheet. . . He’s got 2.6 billion in cash, got a 3% yield. This deserves to trade much higher. Somehow it dropped. . . .this thing has cascaded lower for absolutely no reason whatsoever. This is the stock to buy in retail. Alright. I wanna own Costco, which shouldn’t be down. I wanna own TJX, and I wanna own this one.”

While we acknowledge the potential of GAP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.