Cramer: AI threat to consumer stocks may be overstated

CNBC's Jim Cramer stated Tuesday that Wall Street might be overreacting to the threat posed by Meta's Muse AI agent to a wide range of consumer stocks.

The "consumer inertia" trade, as it's being called, is based on the idea that AI agents like Muse could harm businesses that benefit from consumers not bothering to cancel subscriptions, compare prices, or shop around. Muse can assist consumers with these tasks, including canceling subscriptions with user approval.

Cramer believes the market's broad sell-off has created potential buying opportunities in companies whose businesses remain fundamentally strong. He draws a parallel to the earlier "SaaSpocalypse," where enterprise software stocks were dumped due to AI disruption fears, but many companies eventually recovered.

Since Muse's launch on September 8, several consumer companies have seen significant declines. Planet Fitness is down 20%, Airbnb 13%, and Booking Holdings 16%. Cramer, however, urges investors to assess each company's actual vulnerability rather than broadly labeling entire industries as AI losers. He pointed to Life Time as an example, suggesting its more engaged member base might be less likely to cancel.