Jim Cramer told investors to hold off on buying Accelevation Holdings. The stock went public last week. Cramer thinks you should wait. He works for CNBC. He has opinions about every stock that exists.
Accelevation Holdings builds AI infrastructure. Nobody knows what that means. The company probably rents GPUs to other companies who also don't know what they're doing. But it has AI in the description so the valuation is seventeen billion dollars.
Cramer's advice is to wait. Smart move. Let the price settle. See how earnings look. Maybe read a 10-K if you're feeling adventurous. This is reasonable guidance that will be completely ignored by every person who watches his show.
Here's what actually happens when Cramer says wait. Thousands of retail traders hear "newly public AI stock" and their brains shut off. They open Robinhood. They market-buy at 9:31 AM. They don't wait for anything except the inevitable loss.
The beautiful part is Cramer gave them an out. He handed them permission to do nothing. Doing nothing is free. It requires zero effort. You could go to the beach. You could learn Spanish. You could stare at a wall. All better choices than buying a stock because it has AI in the prospectus.
But they won't wait. They never wait. Waiting implies discipline. Discipline implies a plan. A plan implies you've thought about something for more than four seconds. Retail traders allocated those four seconds to typing the ticker symbol wrong three times.
Accelevation will probably crash 40% in six months when everyone realizes AI infrastructure means "we own some servers." Cramer will say he warned you. He did warn you. You bought it anyway because the guy at your gym said his cousin works in tech.
Photo by Steve A Johnson on Unsplash
Leave a Comment