Jim Cramer: Surprising Market Reactions and a Skeptical Look at AST SpaceMobile

The well-known stock market expert Jim Cramer recently commented on the latest stronger-than-expected labor market report, describing it as "good news." He expressed surprise at how positively the stock markets reacted to the report, specifically noting an increase in bank stocks. In his opinion, the positive development in the banks might be related to the fact that strong employment conditions mean fewer bad loans. Cramer also noted that we might be in a phase without an economic landing. In a detailed program, Cramer examined ten stocks that are currently in high demand in hedge fund portfolios. His interest lies in outperforming market performance by emulating the best hedge fund strategies. Particularly noteworthy is a 275% increase since May 2014 in applying a quarterly stock selection strategy, which has significantly outperformed the benchmark index. At the center of the discussion is the Texas-based company AST SpaceMobile, which has an unusually high price-to-book ratio of 29.74. This valuation raises concerns among investors as it is well above the industry average. The company aims to offer global mobile broadband connections via satellites in low Earth orbit. Despite this promising approach, Cramer considers the stock price to be "too hot." AST SpaceMobile positions itself as the "first and only" provider of cellular broadband services from space, yet is in a highly competitive market. Despite the anticipated high demand, there is a risk that it may not materialize as expected due to rapid technological developments. The company is not projected to be profitable until 2028; therefore, for investors hoping for quick returns, the stock may be less attractive. While AST SpaceMobile plays a prominent role in Insider Monkey's recent list, Jim Cramer focuses on the potential of AI stocks, which he considers to be more lucrative and timely.