Jim Cramer advocates buying Procter & Gamble stock

CNBC’s Jim Cramer looked back at recent market movements and argued that: procter and gamble. He distinguished between companies like consumer goods giants that take advantage of new technologies and companies like high-tech hyperscalers that compete by spending billions of dollars on artificial intelligence.

“My favorite tech stocks right now are B2B users of technology,” he said. “I think these companies will increasingly have the opportunity to buy great technology that helps them reduce costs and bring new products to market much faster than ever before. We didn’t even know we needed them.”

Procter & Gamble owns many well-known household and hygiene brands, including Pampers, Crest, Olay, Gillette, Dawn, Febreze, and Mr. Clean. The company is leveraging AI to improve its supply chain and design its factories more efficiently, Kramer said, suggesting the effort has saved millions of dollars.

Kramer called Procter & Gamble a buy at this level, saying, “In this strange market, we need people who use technology, not people who create it.” The company’s stock price has fallen more than 13% since the beginning of the year, trading at a P/E ratio of 20 times and a dividend yield of 2.91%.

Kramer said he’s not advocating that investors dump tech stocks en masse, but he emphasized that enthusiasm for the group has waned because of increased competition and big spending. He said, “The Magnificent Seven.” Nvidia, microsoft, meta, apple, alphabet, Amazon and tesla -Although he has suffered heavy losses so far, he is currently withdrawing because the future outlook is extremely uncertain.

“If we can’t rein in spending, these big tech stocks won’t be able to move forward,” he said. “But I don’t know how.”

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Disclaimer CNBC Investing Club owns shares in P&G, Nvidia, Meta, Microsoft, Apple, and Amazon.