In this article, we discuss the 10 stocks that jumped after Jim Cramer’s negative call. If you want to read about some more stocks that jumped after Jim Cramer’s negative call, go directly to 5 Stocks That Jumped After Jim Cramer’s Negative Call.
Jim Cramer, the host of Mad Money on CNBC, has had an extraordinary career in the finance world over the past three decades. After graduating from Harvard with a law degree in the mid-80s, Cramer somehow landed at investment bank Goldman Sachs. After a three-year stint at the firm, he left to start his own hedge fund named Cramer Levy Partners. His stock picks as a hedge fund chief beat the S&P 500 for seven consecutive years. However, the dot-com crash of the late 1990s forced him to leave his position at the fund as it lost money.
Since then, Cramer has excelled as a journalist investor, building an ardent fan following despite the fact that his stock picks on television have not outperformed the benchmark indexes by a margin worthy enough for them to attract serious attention. Cramer embodies the decades-old conflict within the American finance world, the one between the panache of investment media versus the patience of intelligent investing. Cramer is notorious for high energy bullish and bearish calls on his show that do not always pan out.
One of the most famous calls that Cramer made was in March 2008, when he said that Bear Stearns was fine. In mid-March, the firm was saved from a total collapse when it was bought by peer JPMorgan at a valuation of just $2 per share. In September 2021, Cramer put out a bullish call on entertainment firm AMC. The stock has plunged 71% since then. Similarly, his bull calls on other growth stocks like Coinbase and Netflix have also invited ridicule in the present market environment where investors are seeking safe haven from risky bets.
Cramer has also urged his viewers to prepare for a market rally, one that would see the shares of prominent tech firms like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG) rise despite an overall market slowdown. The journalist investor has been increasingly in the spotlight over the past few months as retail traders are tracking his bull and bear calls through the InverseCramer ETF. This ETF has returned over 2.3% to investors in the past four weeks.
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC. The firms that Jim Cramer is bearish on but have registered an increase in their share price over the past month were selected for the list. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the popularity of each stock among hedge funds.
Stocks That Jumped After Jim Cramer’s Negative Call
10. Getty Images Holdings, Inc. (NYSE:GETY)
Number of Hedge Fund Holders: N/A
Percentage Increase in Share Price Over Past Month as of August 25: 217%
Getty Images Holdings, Inc. (NYSE:GETY) operates as a visual content creator. On August 15, Jim Cramer told his viewers to “refrain” from buying the shares of the company until the share price declines. Cramer claimed that the rise in the share price of the firm was largely down to people seeing the shares as “an attractive opportunity to engineer a short squeeze”. Cramer predicted the stock will come down as more investors sold their shares and told viewers to “stay away until it cools off”.
On August 11, Benchmark analyst Mark Zgutowicz downgraded Getty Images Holdings, Inc. (NYSE:GETY) stock to Hold from Buy without a price target, noting that the firm delivered solid second quarter results despite a macro backdrop and significant currency headwinds.
Getty Images Holdings, Inc. (NYSE:GETY) posted earnings for the second quarter of 2022 on August 10, reporting a revenue of more than $233 million, missing analyst expectations by close to $10 million. The firm said it expected year-on-year growth in revenue of up to 6.7% in 2022.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG), Getty Images Holdings, Inc. (NYSE:GETY) is one of the stocks that will likely benefit from a year-end market rally.
9. Companhia Siderúrgica Nacional (NYSE:SID)
Number of Hedge Fund Holders: 7
Percentage Increase in Share Price Over Past Month as of August 25: 17%
Companhia Siderúrgica Nacional (NYSE:SID) is an integrated steel producer. On August 9, Cramer outlined his bearish view on the firm during the Lightning Round of his show. The journalist investor, while answering a viewer question, claimed that people did not want to own steel companies “at this point in the cycle”. He also added that if people did buy steel stocks, it would rather be established names like Nucor Corp.
Some of the industries that make use of products sold by Companhia Siderúrgica Nacional (NYSE:SID) include construction material stores, home centers, concrete producers, construction companies, mortar industries, cement artifact producers, as well as thermoelectric co-generation and hydroelectric power plants.
At the end of the second quarter of 2022, 7 hedge funds in the database of Insider Monkey held stakes worth $8 million in Companhia Siderúrgica Nacional (NYSE:SID), compared to 9 in the preceding quarter worth $42 million. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Companhia Siderúrgica Nacional (NYSE:SID), with 1.9 million shares worth more than $5.6 million.
8. Lithium Americas Corp. (NYSE:LAC)
Number of Hedge Fund Holders: 9
Percentage Increase in Share Price Over Past Month as of August 25: 35%
Lithium Americas Corp. (NYSE:LAC) operates as a resource firm. On August 11, during the Lightning Round of his show, Cramer underlined the bear case for the firm. In response to a viewer question about the company, Cramer identified Lithium Americas as a “perpetual money loser” and said he could not recommend stocks like it. The company recently posted losses per share of $0.12 in earnings for the second quarter of 2022.
On July 22, investment advisory Canaccord maintained a Speculative Buy rating on Lithium Americas Corp. (NYSE:LAC) stock and lowered the price target to C$49 from C$50. Analyst Katie Lachapelle issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Singapore-based investment firm Himension Capital is a leading shareholder in Lithium Americas Corp. (NYSE:LAC), with 3.3 million shares worth more than $66 million. Overall, at the end of the second quarter of 2022, 9 hedge funds in the database of Insider Monkey held stakes worth $110 million in Lithium Americas Corp. (NYSE:LAC), compared to 19 in the preceding quarter worth $214 million.
7. MannKind Corporation (NASDAQ:MNKD)
Number of Hedge Fund Holders: 13
Percentage Increase in Share Price Over Past Month as of August 25: 15%
MannKind Corporation (NASDAQ:MNKD) operates as a biopharmaceutical firm. Cramer has been bearish on the stock in the past few weeks. During the Lightning Round of his show on August 3, the former hedge fund manager bemoaned that no one ever liked when he said anything bad about the firm. He also questioned whether the firm was simply “not a good company” and that honest analysis of stocks mattered to him.
MannKind Corporation (NASDAQ:MNKD) posted earnings for the second quarter of 2022 on August 9, reporting losses per share of $0.11, missing market estimates by $0.02. The revenue over the period was $18.8 million, down close to 19% year-on-year.
At the end of the second quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $72 million in MannKind Corporation (NASDAQ:MNKD), compared to 19 in the previous quarter worth $61 million. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm VenBio Select Advisor is a leading shareholder in MannKind Corporation (NASDAQ:MNKD), with 9.1 million shares worth more than $34 million.
6. 23andMe Holding Co. (NASDAQ:ME)
Number of Hedge Fund Holders: 13
Percentage Increase in Share Price Over Past Month as of August 25: 32%
23andMe Holding Co. (NASDAQ:ME) is a consumer genetics testing company. On August 9, Cramer discussed the stock during the Lightning Round of his show. The former Goldman Sachs employee underlined that the stock had no mojo, noting that it was one of the major reasons why it was going nowhere. He noted that he had said the same thing to the CEO of the firm when he had had him on the show.
In late May, Citi analyst Daniel Grosslight maintained a Neutral rating on 23andMe Holding Co. (NASDAQ:ME) stock and lowered the price target to $3 from $6, noting that the firm had a uniquely valuable asset in the genotypic and phenotypic data space.
At the end of the second quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $41 million in 23andMe Holding Co. (NASDAQ:ME), compared to 19 in the previous quarter worth $71 million. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Euclidean Capital is a leading shareholder in 23andMe Holding Co. (NASDAQ:ME), with 10.2 million shares worth more than $25 million.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG), 23andMe Holding Co. (NASDAQ:ME) is one of the stocks that hedge funds are monitoring.
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Disclosure. None. 10 Stocks That Jumped After Jim Cramer’s Negative Call is originally published on Insider Monkey.
