Jim Cramer on DexCom: “It’s Too Rich a Stock”

“You know, it’s excessively affluent a stock, and I bash deliberation the GLP-1s are going to person specified a melodramatic effect connected their market. I don’t privation to ain the stock. Now, it tin person a melodramatic effect connected the science of the radical who privation to bargain the stock. That’s a amended mode to enactment it.”

Photo by Artem Podrez connected Pexels

DexCom, Inc. (NASDAQ:DXCM) develops and sells continuous glucose monitoring systems to assistance patients and clinicians negociate diabetes and metabolic health. Sands Capital stated the pursuing regarding DexCom, Inc. (NASDAQ:DXCM) successful its 3rd 4th 2025 capitalist letter:

“DexCom, Inc. (NASDAQ:DXCM) is simply a starring shaper of glucose monitors for diabetes management. Shares declined during the quarter, pressured by broader weakness successful the aesculapian devices manufacture and heightened FDA and lawsuit scrutiny of merchandise reliability. Despite these outer pressures, Dexcom continues to execute good pursuing its mid-2024 operational challenges. The 2nd 4th marked its 3rd consecutive 4th of accelerating twelvemonth over-year gross growth, supported by near-record caller diligent additions. While absorption raised 2025 gross guidance, the summation was much cautious than statement expected, disappointing investors. We judge this blimpish stance creates country for upside successful the 2nd fractional of 2025. Dexcom ended the 4th trading adjacent its all-time debased guardant net multiple, which we presumption arsenic a disconnect from its maturation outlook. Potential catalysts see beardown adoption of its recently launched 15 time sensor, expanded Medicare sum for type-2 non insulin patients, and clarity connected the company’s long-range plan. We expect borderline leverage from the 15-day sensor should besides lend meaningfully to profitability successful 2026.”

While we admit the imaginable of DXCM arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the champion short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.