Jim Cramer makes the case for buying Procter & Gamble stock

CNBC’s Jim Cramer analyzed the latest market action and made the following case: Procter & Gamble. He drew a distinction between companies like consumer giants leveraging new technology and tech hyperscalers spending billions of dollars on artificial intelligence to compete with each other.

“My favorite tech stocks right now are business-to-business users of technology,” he said. “I think these companies will increasingly be given the chance to buy great technologies that we didn’t even know we needed that will help them reduce costs and bring new products to market faster than ever before.”

Procter & Gamble, Pampers, Crest, Olay, Gillette, Dawn, Febreze and Mr. It owns many well-known home and hygiene brands such as Clean. Cramer said that the company used artificial intelligence to improve its supply chain and design factories more efficiently, and claimed that the company saved millions.

Cramer stated that Procter & Gamble should be purchased at these levels and said, “In this crazy market, you want the people who use technology, not the ones who make it.” The stock is down more than 13% on the year, trades at 20 times earnings, and its dividend yield is 2.91%.

Cramer emphasized that he is not advocating that investors abandon technology stocks completely, but that he is less enthusiastic about the group due to increased competition and huge expenses. The Magnificent Seven said — Nvidia, Microsoft, Meta, Apple, Alphabet, Amazon And Tesla’s – they had huge rises but are now retreating because “their future prospects are very dark.”

“These big tech stocks can’t get ahead unless they can rein in their spending,” he said. “But I don’t know how they could do that.”

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Disclaimer CNBC Investment Club owns shares of Procter & Gamble, Nvidia, Meta, Microsoft, Apple and Amazon.