Jim Cramer suggests Oracle can be bought on weakness and C3.ai...
On Tuesday, CNBC's Jim Cramer offered insights on two prominent enterprise software companies, Oracle and C3.ai, both of which are garnering attention from Wall Street due to their involvement in artificial intelligence.
Buying Oracle on Weakness
Jim Cramer suggested that buying Oracle during a pullback could be a strategic move, emphasizing that despite the recent dip, the crucial aspects of the business remain strong. He highlighted Oracle's cloud infrastructure and AI segments as particularly promising, with demand surpassing supply.
Selling C3.ai into Strength
On the other hand, Cramer recommended selling C3.ai if you currently own it and advised against shorting the stock, cautioning about the risks associated with betting against a company with AI in its name.
Oracle recently experienced a decline in its shares following its earnings report, while C3.ai saw a boost in its stock value after beating expectations. Cramer attributed Oracle's underwhelming performance to one-off issues and stated that the core businesses of the company are still performing well.
Concerns About C3.ai
While some investors were impressed by C3.ai's partnership with Microsoft, Cramer expressed concerns about the company's revenue growth rate and profitability due to significant investments required to support the initiative.
Overall, Cramer viewed Oracle's pullback as an opportunity to invest in a solid company with promising prospects in the AI sector.
Disclaimer: The CNBC Investing Club Charitable Trust holds shares of Nvidia and Meta.
