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.”
READ ALSO: Jim Cramer Talked About These 8 Stocks and Jim Cramer’s Game Plan: 10 Stocks in Focus
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.
8. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT)
Number of Hedge Fund Holders: 47
When a caller mentioned that they have a small position in J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT), Cramer remarked:
“Okay, don’t want to be bigger than a small position. It is a transport, it is a trucking company and we could be going into recession and it’s not a good group going into a recession.”
J.B. Hunt (NASDAQ:JBHT) offers various transportation, delivery, and logistics services. The company uses its own fleet of equipment and resources. Additionally, in February, Cramer said:
“Plus, talk about being in the crosshairs of the tariffs. Do we wanna own a rail that runs from Mexico to here or a trucking company like J.B. Hunt, if we’re getting into a tariff war in Mexico? To me, this group feels like it’s practically in a recession cycle today.”
7. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 161
A caller asked Cramer’s thoughts on Broadcom Inc. (NASDAQ:AVGO) and in response, he said:
“Broadcom announced a $10 billion buyback to be finished by year-end by a CEO by the name of Hock Tan, who is just one of the greatest CEOs of our era. And this stock was only up $1.89. What that says is this is a horrible stock market, not a horrible company or a horrible stock. The market itself is just nauseous.”
Broadcom (NASDAQ:AVGO) is recognized for its specialization in designing, developing, and providing semiconductor devices. Renaissance Large Cap Growth Strategy stated the following regarding the company in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) was another large contributor in the quarter after reporting solid operating results. The company presented an optimistic outlook, driven by its dominant position in artificial intelligence application-specific chipsets. In addition, the company should continue to benefit from its leading position in several end markets including data centers and cloud infrastructure, which have favorable secular growth trends. Broadcom is also seeing margin expansion and improved visibility, as the mix of software revenues increases, following the acquisition of VMWare.”
6. Ralph Lauren Corporation (NYSE:RL)
Number of Hedge Fund Holders: 43
Ralph Lauren Corporation (NYSE:RL) received a comment during the episode as Cramer stated:
“Finally, there’s Ralph Lauren. Exact same pattern, $289 goes down to $182. And in this case, the company reported a dramatic upside surprise… CEO Patrice Louvet was hailed as the exec who really got it right. Unfortunately, Ralph Lauren also makes a lot of clothes, you guessed it, in Vietnam. So the stock’s been obliterated.”
Ralph Lauren (NYSE:RL) is a well-known designer, marketer, and seller of lifestyle products, including apparel, home items, and accessories. Last week on Squawk on the Street, Cramer said:
“You know I look at Williams Sonoma that’s getting killed. Patrice Louvet does a fantastic job. Ralph Lauren that getting killed. PVH had a great quarter. I don’t even have to mention how that’s ridiculous.”
5. RH (NYSE:RH)
Number of Hedge Fund Holders: 51
Moving on to RH (NYSE:RH), Cramer commented:
“It’s kind of like RH, the old Restoration Hardware, which has fallen from $457 to $149 in less than four months. This is Gary Friedman’s company. He is total money, but if you buy it here, you’re betting that the wealthy customers should be able to deal with the tariffs that we put on all of their beautiful furnishings. This stuff’s pretty expensive already, although I’d argue it’s worth the price. However, RH also makes a ton of furniture in Vietnam and it’s hard to say it’ll be worth the price once you throw in that 46% tariff.”
RH (NYSE:RH) is a lifestyle brand and retailer in the home furnishings market and it provides a wide range of products such as furniture, lighting, textiles, and décor. On Friday, Cramer commented on the company as he said:
“Nike did nothing wrong. Lulu did nothing wrong. These companies they didn’t do anything wrong. They played by the rules. They left China. RH left China. They played by the rules. Why hurt the people who played by the rules?”
4. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 60
Cramer highlighted Lululemon Athletica Inc. (NASDAQ:LULU) as a top apparel brand, despite recent market struggles. He added:
“It’s well run and if you listen to them, it’s still in its infancy. But Lululemon guided down when it reported after an excellent quarter, and kaboom, it just got crushed. In a normal market, a company as good as Lululemon would be given some sort of grace period. Not this time. The stock fell 15%.
I thought then that the downside had now been baked in and Lulu’s stock had been de-risked, but it just keeps falling. It’s now down almost a hundred points, from $341 down to $247 and change. This is Lululemon for heaven’s sake. This is a company run by Calvin McDonald, one of the best CEOs anywhere. Yet the stock’s now down 35% for the year. At first, I thought the vicious decline was a sign that Wall Street’s worried about even wealthier consumers. But the real issue is that Lulu makes a lot of its clothes in Vietnam and we’re putting a 46% tariff on Vietnam effective tomorrow. That’s a huge increase. So big that it’s practically the kiss of death.”
Lululemon (NASDAQ:LULU) designs, manufactures, and sells athletic apparel, shoes, and accessories.
3. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 83
A caller inquired about Intel Corporation (NASDAQ:INTC), and this is what Cramer had to say in response:
“Okay, well, look, this is a situation where you’ve got a, you have Lip-Bu Tan who’s an unbelievable executive. When I ask whether they are ready to be, let’s say for a much better situation than they’ve been, what I get is, look, let’s fix the balance sheet first. So I’m waiting for the balance sheet to be fixed. And once it is, then I think we’re going to take a hard look at it. But not until it is fixed to my satisfaction.”
Intel (NASDAQ:INTC) designs and makes computing products, including processors, memory, and AI solutions. On March 25, Cramer commented:
“Intel, alright. The one thing that Lip-Bu is doing, Lip-Bu Tan, first he’s fixing the balance sheet. He has to do that. The balance sheet is not good. The cash flow is not good, he’ll fix that with the help of David Zinsner who’s just a fabulous CFO. And then we’ll hear from him.”
2. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 21
AeroVironment, Inc. (NASDAQ:AVAV) was mentioned during the episode, and here’s what Camer had to say:
“Well, it was up seven today. Look, I’ll tell you the problem here…. It’s a stock. I know that sounds a little soporific, but stocks are going down particularly high multiple stocks… We could have, we could have Wahid Nawabi on right now and he could tell us how things are going and things are going great. It just doesn’t matter. People don’t want to own the defense stocks right now. They feel that defense budget’s going to be cut. I don’t agree, but that’s what’s happening.”
AeroVironment (NASDAQ:AVAV) creates and supports various robotic systems, including unmanned aircraft, ground robots, and loitering munitions. It is worth noting that in January, Cramer said:
“Oh boy, I really like it. It really is the solution, I think, in a lot of ways to a Pentagon budget that may be too bloated but needs to be more effective. I like AVAV and I gotta tell you, Wahid Nawabi, he’s been on the show and every time he’s been a star.”
1. Affirm Holdings, Inc. (NASDAQ:AFRM)
Number of Hedge Fund Holders: 61
A caller asked for Cramer’s opinion on Affirm Holdings, Inc. (NASDAQ:AFRM) before they bought more of the stock and Cramer replied:
“Well, I think the world of Affirm, but it’s what I call an earnings stock. In other words, it doesn’t really do anything, change direction until you add the earnings. Right now, the direction is down. When we see the company report on May 8th, I think that therefore we could change direction again because I think that there’s no doubt Matt Levchin delivers good quarter after good quarter. But then in between, it trades down and you’re dealing with that. I don’t think it reverses until we get to May 8th.”
Affirm Holdings (NASDAQ:AFRM) is a financial technology company. It focuses on offering Buy Now, Pay Later services, which give consumers flexible repayment options with clear terms.
While we acknowledge the potential of Affirm Holdings, Inc. (NASDAQ:AFRM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AFRM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
