Jim Cramer, host of Mad Money, recently shared his thoughts on the prevailing negative sentiment surrounding data centers and discussed the broader economic implications of Trump’s tariffs, especially their effect on consumer confidence.
“The rebellion against the data center continues. That’s the dominant theme of this market. Don’t anyone tell you otherwise… How do I know this? Aren’t there more cross-currents than that? Oh, of course, there are. I mean there’s the endless tariff Trump beat, one that’s driven stocks lower en masse incredibly.”
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He noted that aside from the Dow, no major index, including the S&P 500, the Nasdaq, the transport sector, or even the small-cap Russell 2000, has managed to gain since Trump’s inauguration. In fact, some of these indices, like the Russell, have been hit particularly hard. Cramer commented on the almost daily barrage of new tariffs, saying, “It feels like we get a new tariff for every day, doesn’t it?”
“Perhaps there’s a sense that the Trump bump is over. We know that when he was elected, the business world cheered with both their voices and their dollars. It was spontaneous.”
The optimism, he noted, led to a surge in stock prices across various sectors. However, after Trump entered the second month of his presidency, some business leaders started to question the turmoil coming out of Washington. Cramer pointed out that this growing uncertainty is contributing to a more cautious outlook in the business world.
He highlighted that the much-anticipated tax cuts have not materialized yet, with instead, a constant stream of confusing and unpredictable tariff-related talk coming from the administration. Cramer went on to explain that the uncertain environment is making people feel uneasy. He referenced an indicator from the University of Michigan’s consumer sentiment report, which was noticeably more negative than anticipated.
“One of the indicators we got this week, the University of Michigan consumer sentiment reading, was appreciably more negative than we expected. That’s a read of what I’m talking about. We know this economy runs on the consumer. Any sign of a real slowdown based on consumer confidence could be a shocker.”
7 Stocks on Jim Cramer’s Radar
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 25. We listed the stocks in ascending order of their hedge fund sentiment 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).
7 Stocks on Jim Cramer’s Radar
7. WeRide Inc. (NASDAQ:WRD)
Number of Hedge Fund Holders: 2
When Cramer was asked about WeRide Inc. (NASDAQ:WRD), he replied:
“Oh my god, WeRide. Oh geez. You cut me to the quick. I don’t want to go, look, I like Alibaba. That was the only Chinese stock I like and it’s been absolutely terrific.”
WeRide (NASDAQ:WRD) is an investment holding company that provides autonomous driving solutions for mobility, logistics, and sanitation industries in China. Its offerings include robotaxi, robobus, robovan, robosweeper, advanced driver-assistance systems, and the WeRide Go ride-hailing app. On February 17, Morgan Stanley reported that the company stock surged on February 14, driven by the market’s enthusiasm following Nvidia’s investment in the company.
Nvidia’s latest quarterly filing disclosed a holding of 1.74 billion shares in WeRide, attracting significant positive attention to the company, as noted by the analyst in a research report. Morgan Stanley attributes the surge, along with factors like low liquidity and the potential involvement of quant funds, to the dramatic movement in WeRide’s (NASDAQ:WRD) stock, which saw a rise of up to 146% in a single trading day.
The firm views the rally as a sign of growing investor interest in self-driving technology and highlights the crucial role of strategic partnerships in the developing robotaxi market. According to Morgan Stanley, Chinese robotaxi solution and hardware providers like WeRide (NASDAQ:WRD), Hesai, and Zeekr will become competitive options as global companies look to build their robotaxi fleets. The firm maintained an Overweight rating on the stock with a $23 price target.
6. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 29
Enterprise Products Partners L.P. (NYSE:EPD) provides midstream energy services, such as the transportation, storage, and processing of natural gas, crude oil, NGLs, petrochemicals, and refined products. When asked about the company, Cramer said, “Double down on it.”
Cramer’s bullishness on Enterprise Products Partners (NYSE:EPD) has not wavered as he expressed a similar sentiment in January:
“Oh my God, it’s my absolute, absolute favorite of the group. I think you just gotta, just stand there and buy it. It’s cheap. It’s got a good yield and its business is fabulous. Thank you Rusty Braziel for pointing that one out to me a long time ago.”