Jim Cramer on EPAM: "Things Got Worse for EPAM Specifically When the Company Reported Mid-February"

EPAM Systems, Inc. (NYSE:EPAM) is one of the S&P 500 stocks that Jim Cramer shared his take on. Cramer highlighted why the stock declined significantly, as he remarked:

Let’s talk losers. The S&P’s worst performer for February was EPAM Systems, down 32.4%. Now, this one’s right in the AI blast radius because it’s an outsourced software developer. Companies come to EPAM to help them build software that they can’t or don’t want to create in-house. Unfortunately, these generative AI platforms can do more or less the same job for a lot less money.

Beyond being wrong thematically, things got worse for EPAM specifically when the company reported mid-February. The actual quarterly results were pretty good, but management gave us light sales guidance for both the current quarter and the full-year. The forecast seemed to confirm the market’s broader fears about AI displacement, sending the stock down 70% in a single session, and it never recovered. Now, that’s an example of a company that I am very concerned about.

EPAM Systems, Inc. (NYSE:EPAM) provides digital engineering and software development services, including cloud migration, cybersecurity, and artificial intelligence solutions. It helps its customers with product design, platform modernization, and smart automation.

While we acknowledge the potential of EPAM 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.

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