Jim Cramer Said Affirm Holdings, Inc. (NASDAQ:AFRM) Was The One To Buy

Affirm Holdings, Inc. (NASDAQ:AFRM) is a favorite stock of CNBC TV host Jim Cramer, as he frequently praises the firm's CEO. Cramer has predicted that the shares would reach $100, which the latest closing price is currently at $77. Cramer highlighted Affirm in August 17th, stating that it should be at $100, possesses impressive growth, and has a CEO he admires.

However, Affirm's valuation remains a contentious issue, as its forward P/E ratio is more than twice that of JPMorgan and thrice that of PayPal. Affirm's growth metrics, including a strong gross merchandise volume growth of 35%, revenue less transaction costs growth of 41%, and active customer growth of 22%, demonstrate its potential.

Furthermore, the firm's point of sale algorithmic data helps it manage defaults, albeit its profitability is still dependent on consumer spending, interest rates, and economic turmoil due to inflation.

Salesforce Inc. (NYSE:CRM) has also witnessed Cramer's attention, with its shares down by 17.5% year-to-date. While the firm's AI platform, Agentforce, has shown remarkable growth, its contribution to overall revenue remains limited. The AI and data ARR also include figures from Informatica, making it challenging to assess the impact of Agentforce.

Hedge fund sentiment has shifted slightly, with fewer funds holding a stake in Salesforce Inc. (NYSE:CRM) compared to the previous quarter. Despite this, Insider Monkey still considers CRM an investment worth considering, with a belief in the potential of AI stocks with higher returns and lower downside risk.