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Uber Technologies, Inc. (NYSE:UBER) was one of the stocks on which Jim Cramer shared his take, explaining that dot-com analogies do not hold up in this market. A caller asked whether the stock is a buy, given that the company is putting more autonomous vehicles on the road. Cramer stated:

I think it’s definitely a buy. This is one of those stocks that reported a really good quarter. It sells at 25 times earnings. It’s got great growth, and that’s what we’re looking for, great growth, not just in the data center but away from the data center. And you picked a good one; there aren’t many as good.

Photo by Zhuo Cheng you on Unsplash

Uber Technologies, Inc. (NYSE:UBER) operates technology platforms that connect users for mobility, delivery, and freight services. The company provides ridesharing, food and retail delivery, and digital freight logistics. During the April 14 episode, Cramer showed disbelief over the stock’s decline, as he remarked:

Let’s take them in descending order of valuation. First up, one that I wrote about in How to Make Money in Any Market, that I can’t believe is down this much, Uber Technologies, the ride share kingpin with the big food delivery business. Uber’s down 29% from its all-time high set last September despite the fact that the company’s earnings are expected to grow at a nearly 40% clip this year. This one barely made it onto our list, though, because its valuation’s just below the S&P as a whole, trading at 21.3 times this year’s earnings estimates.

Now, as I’ve told you before, I think Uber’s stock has been weighed down by overblown worries about robotaxis from the likes of Tesla and Google’s Waymo. Uber owns a network of 200 million monthly active users. The best way for the robotaxi outfits to grow is by partnering with them. Just yesterday, we learned that Uber and the autonomous driving company Nuro plan to launch a premium robotaxi service in San Francisco later this year. On top of that, thanks to the recent pullback, Uber stock is finally cheap for the first time in years. What’s not to like? This sell-off is creating bargains.

While we acknowledge the potential of UBER 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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