Jim Cramer on Ferrari N.V.: “This Was a Very Hot Stock, and …

Ferrari N.V. (NYSE:RACE) is one of Jim Cramer’s stock calls while he discussed the confusion surrounding the Trump-Iran conflict. A caller asked if now is a good time to buy the stock, and Cramer said:

This was a very hot stock, and somehow it lost its mojo. I don’t know how it’s going to get the mojo back, and right now it sells at too high a price-to-earnings multiple. I’m going to have to say I don’t like the stock.

Photo by M on Unsplash

Ferrari N.V. (NYSE:RACE) designs, engineers, and manufactures luxury high-performance sports cars, supercars, and high-performance engines. Loomis Sayles stated the following regarding Ferrari N.V. (NYSE:RACE) in its fourth quarter 2025 investor letter:

Ferrari N.V. (NYSE:RACE) Headquartered in Maranello, Italy, Ferrari designs and manufacturers iconic sports cars that are widely considered to represent the pinnacle of automotive performance given the brand’s historic dominance in Formula 1 (F1) racing. The company operates through three business segments: cars and spare parts; sponsorships, commercial and brand; and other, which primarily relates to financial services activities. We believe the company’s legendary brand, often ranked among the world’s strongest, coupled with an expanding global ultra-high net worth population, positions it for durable long-term growth in the supercar market.

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While we acknowledge the potential of RACE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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While we acknowledge the risk and potential of RACE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RACE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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