Jim Cramer Says He Won’t Recommend Money-Losing POET Technologies (POET) Stock
Jim Cramer stated he won't recommend POET Technologies (POET) due to its money-losing status. POET reported Q2 revenue of $569,925, up 112% YoY, but a net loss of $11.3M. The company has $796.3M in cash and a potential $500M supplier deal. POET's valuation is high with a P/S ratio above 800x.
How this was made
The 30-second read
Why it matters
Cramer's comments may amplify short‑term volatility, especially given the high valuation.
Market read
POET's Q2 earnings provide fresh data on a high‑growth, loss‑making AI photonics firm; mixed signals for traders.
What to watch
Potential multi‑year supplier contract worth >$500M could improve long‑term revenue visibility.
Background
Jim Cramer publicly warned against POET, adding a sentiment overlay to the earnings release.
Ticker impact
Q2 results show revenue up 112% YoY to $569,925 and a net loss of $11.3M, plus $796.3M cash after a $400M financing.
potential pressure as investors weigh growth against ongoing losses and high P/S multiple
Revenue surge is positive, but widening losses and cash burn may limit upside; valuation already stretched.
Market effects
Highlights continued investment in AI‑focused photonic components, may boost sector interest.
U.S. tech investors may reassess exposure to early‑stage AI hardware firms.
Limited to niche AI hardware market; broader market impact modest.
Counterpoint
Despite losses, the large cash position and growth potential could support a speculative upside.
Key entities
- CommentatorJim Cramer
Host of Mad Money who discouraged investment in POET.
