JFrog Ltd. (NASDAQ:FROG) was among the stocks on which Jim Cramer gave his opinion, as he warned that increased AI-related spending might cause near-term headwind for stocks. Starting the lightning round, a caller inquired about the stock, and Cramer replied:
Oh, you got to take a little off the table. Software development is a good business, but the multiple’s too high. I want you to take a little off the table tomorrow morning.
A stock market data. Photo by AlphaTradeZone on Pexels
JFrog Ltd. (NASDAQ:FROG) provides a comprehensive software supply chain platform that offers package repositories, advanced security scanning, machine learning pipeline tools, and IoT device management. TimesSquare Capital Management stated the following regarding JFrog Ltd. (NASDAQ:FROG) in its fourth quarter 2025 investor letter:
Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Lastly was JFrog Ltd. (NASDAQ:FROG), the portfolio’s strongest performer this quarter. JFrog manages the software supply chain and enables organizations to securely deliver software updates across their enterprises. Demand for security increased following the recent NPM supply chain attack. JFrog’s security add-on—which secures open-source packages before organizations onboard them—has seen significant pipeline growth, driving a 32% rally in its shares.
While we acknowledge the potential of FROG 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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