On Tuesday, Jim Cramer, host of Mad Money, discussed the impact of tariff-induced market volatility and he also discussed how it affects some retail companies.
“The market looked terrific when I went out to lunch today … Then I came back and all the gains that I saw were gone. So many wins had turned into losses. So much had melted down. I mean, holy cow. An incredible reversal, a severe reminder of the fragility of this market.”
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Cramer then turned his attention to the decision by the U.S. government to impose a 46% tariff on goods from Vietnam. He noted that Vietnam floods the U.S. market with products while importing very little in return. However, he pointed out that Vietnam is a poor country and questioned what it could even afford to purchase.
“So why did the White House hit Vietnam with a 46% tariff? Because the trade team believes that Vietnam’s a transshipment country. They think the Chinese use it as a backdoor to get around the tariffs.”
Cramer remarked that when companies shifted their manufacturing operations from China to Vietnam, they believed they were making a prudent move. He had expected that American companies manufacturing in Vietnam would face a lower tariff, which he believed was a way to “beat China”. However, it did not materialize. He pointed out that the fallout from the policy is significant as the stocks of these companies take a hit.
He observed that until the situation is resolved, companies that rely on overseas manufacturing will likely continue to see their stock prices fall. Cramer also noted that the Trump administration’s aim seemed to be to penalize foreign trading partners while pushing U.S. companies to bring their manufacturing operations back to America.
“The bottom line: You could conclude that I shouldn’t go to lunch. Or maybe you should accept that things are going to be treacherous for companies that make things overseas no matter what. It’s just too difficult to own these stocks until the estimates are brought down to levels that can be beaten. And obviously from today’s action, we just aren’t there yet.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 8. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Stocks on Jim Cramer’s Radar Recently
10. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 110
When a caller asked about ServiceNow, Inc. (NYSE:NOW), Cramer replied:
“People are worried about federal exposure and, look, I don’t know if it’s right to worry about it or not. I’m just passing on what people are worried about. And the stock is a very expensive stock in a market that is no longer happy with expensive stocks.”
ServiceNow (NYSE:NOW) is a provider of digital solutions that assist businesses in automating workflows and improving operational efficiency across various enterprise functions. Lakehouse Capital stated the following regarding the company in its January 2025 investor letter:
“US-based software company ServiceNow, Inc. (NYSE:NOW) delivered another impressive quarterly result. Revenues grew 21% year-on-year in constant currency terms to $2.9 billion and net income grew 30% year-on-year to $384 million. The company’s key performance indicators remained healthy, with their backlog (remaining performance obligations) growing 23% year-on-year to $22.3 billion (i.e. greater than 2x annual revenue) and renewal rates held firm at 98%. As we have noted in the past, the company’s renewal rates are remarkable as not only are they best-in-class, but they are also extremely consistent, typically in the range of 97% to 99%. These industry-leading renewal rates speak to the mission critical nature of the platform and are a key driver of the long-term annuity value in the business. Zooming out, we continue to believe ServiceNow is one the highest quality software businesses globally as the combination of consistent growth at scale, robust free cash flow generation and a large addressable market make it a compelling opportunity.”
9. Krispy Kreme, Inc. (NASDAQ:DNUT)
Number of Hedge Fund Holders: 14
Mentioning that they were looking for their kid’s first “food purchase”, a caller inquired about Krispy Kreme, Inc. (NASDAQ:DNUT). This is what Cramer had to say:
“Look, it’s a nice spec for a kid. Maybe it can make a comeback, but right now, this thing is just getting hit and hit and hit because it is not a cheap stock. It’s actually expensive even though it is a $4 stock.”
Krispy Kreme (NASDAQ:DNUT) produces doughnuts and offers a variety of customer experiences, including fresh shops, branded cabinets in stores, and digital channels. The company operates both company-owned and franchise locations.
As per Krispy Kreme’s (NASDAQ:DNUT) financial guidance for the full year 2025, it expects net revenue to be between $1.55 billion and $1.65 billion due to an expected organic revenue growth of 5% to 7%. Additionally, the company forecasts its adjusted EBITDA to be between $180 million and $200 million. The company also projects adjusted EPS to be between $0.04 and $0.08.