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We recently published a list of Jim Cramer Put These 14 Stocks Under the Microscope. In this article, we are going to take a look at where ADT Inc. (NYSE:ADT) stands against other stocks that Jim Cramer discusses.
Cramer said that he is avoiding ADT Inc. (NYSE:ADT) stock despite its strengths because Apollo Global Management’s large and ongoing share sell-offs can become a major risk.
“The majority of ADT’s revenue comes from their monitoring and related services, which primarily consists of recurring revenue that’s generated from providing monthly monitoring and other services. I always like to see some recurring revenue… Look, ADT’s done a good job of coming up with new products that make customers’ homes more secure, including a partnership with Google on its Nest devices… Despite what seemed like a solid quarter in April and the progress the company’s making in new offerings, there is something not great here. A major overhang that prevents me from even considering ADT right now. See, Apollo Management, the private equity firm, is the company’s largest shareholder, nearly 30% ownership stake….
A technician demonstrating a security solution for a corporate office.
ADT Inc. (NYSE:ADT) provides security and smart home products, including alarms, cameras, automation systems, and personal emergency response services. The company’s offerings enable customers to monitor and control their homes remotely through different devices and apps.
Overall, ADT ranks 10th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of ADT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADT and that has 100x upside potential, check out our report about this cheapest AI stock.
