Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently

3. DexCom, Inc. (NASDAQ:DXCM)

Number of Hedge Fund Holders: 55

Cramer expressed bewilderment with DexCom, Inc.’s (NASDAQ:DXCM) recent earnings miss and commented:

“Fourth for years, Dexcom… This stock’s been hurt and I think a lot of it’s because Abbott’s blood sugar monitoring device may be better even as Dexcom’s device is twice as expensive over the course of a year. Not necessarily better, but more cost-effective. That’s what, by the way, it’s one big reason why we own Abbott for the Charitable Trust. That stock’s very cheap given how great the company is.

Dexcom in the most recent quarter, well, let’s just say it gave you an inline forecast and a disappointing just 2% decline, ooh, a decline in US sales. The numbers from the second half of 2024 shocked people because Dexcom doesn’t miss, and the explanation, some sort of sales reorg, just didn’t cut it. So the stock finished the year down 37%. I’m still mystified by what happened here.”

DexCom (NASDAQ:DXCM) is a healthcare company focused on the design, development, and commercialization of continuous glucose monitoring (CGM) systems to improve diabetes management. While the company has been a key player in this space, its second-quarter results fell short of investor expectations, leading to a drop in its stock price. Additionally, its revenue growth has slowed in the past few quarters due to factors like faster-than-expected rebate use for its G7 CGM, sales team restructuring, and weaker DME performance.

Despite concerns over GLP-1 drugs potentially reducing CGM demand, management remains confident in the continued need for its devices. It is worth noting that the company reported a 12% increase in net income for the third quarter, totaling $134.6 million, and ended with nearly $2.5 billion in cash, cash equivalents, and marketable securities.

In addition to its traditional focus on people with diabetes, DexCom (NASDAQ:DXCM) has been expanding its market by targeting a broader range of patients. In March, the U.S. Food and Drug Administration cleared Stelo, a CGM option designed for individuals who do not use insulin therapy. This includes patients with type 2 diabetes and even those with pre-diabetes.

Furthermore, the company recently introduced a proprietary generative AI platform, which will be integrated into its devices, starting with Stelo. This AI feature aims to assist patients by analyzing data and lifestyle patterns to provide personalized recommendations, helping users make more informed decisions.