In this piece, we will look at the 17 stocks that Jim Cramer discussed on Friday’s Squawk on the Street.
In his second appearance on Squawk on the Street after the Fed’s interest rate cut, Jim Cramer had a lot to say about the Fed’s decision and the Personal Consumption Expenditure (PCE) data release. The PCE data was a boon for investors as it signaled that inflation was dropping. Cramer started by pointing out that the PCE data release was “somewhat reassuring. Because if we do get lower inflation, I think it’s certainly a possibility because we’re starting to get our arms around what’s really causing inflation. Then it doesn’t seem so devastating, what happened on Wednesday.” He added that the release doesn’t reverse the market fall since he thinks that the market fell after “rampant Bitcoin speculation, after speculation in nuclear power, after speculation in quantum computing, after speculation in what I regard as being these, really kind of, I’ll put them in commercial aerospace, because of Musk.” Cramer believes that the central bank officials ” don’t wanna see that. They don’t point blank say it. I wish they had. But that’s what’s going on here, it’s the air going out of that balloon.”
However, while he believes that the market might have fallen because of the balloon ‘deflating’, this has created an interesting opportunity. According to Cramer, the speculation in the market has been replaced by “some really interesting fundamental news. And I think that we are the most oversold that we’ve been in, you’re up there in terms of the ten-year low, if you bought, and I’ve got some numbers that are saying if you bought today, three months later, you made money. In every single case, it’s really rather extraordinary.”
While the threat of a US government shutdown over the holidays has been averted, Cramer also had some interesting takes on the conflict in Congress. He shared that “I studied shutdowns for my last book. And every shutdown was a buying opportunity. They’re always as frightening as the way we’ve been covering this morning. Uh, and they always end up being a buying opportunity. Because they are considered to be so frightening.”
Cramer backed his claims by sharing data that took all night to calculate. He added “What I’m saying, I know this is against the grain of what I’m hearing, but you’re supposed to buy today not sell it. All the data I have, all the data I have, I mean I’ve got data going back ten years. And. . . [THE] oscillator, the S&P oscillator that I follow. It’s minus eight, uh, thank you to the S&P people.”
The negative oscillator reading means that buying stocks at the dip and then holding them for certain time periods has historically yielded returns. Cramer pointed out “You have a median gain three months later of 4.55, sixty days, 11.0. I mean, this is unassailable stuff. I couldn’t believe it. I asked them to calculate it. Took them all night to calculate. But oh my! You buy today, you make money! I don’t know what to say, the data is the data! The forecast is the forecast! The guidance is the guidance!” He continued and added that while watching the markets early morning on Friday, he wondered “Who are these numbskulls who’re doing this. They are people who are sleep-deprived, they don’t know what they’re doing. And frankly, we now know we have become the crack house. We are the crack house!”
Cramer didn’t hold back when criticizing investors who are obsessed with zero-day options. These options expire after the trading day ends, and therefore, they are for those investors who seek to profit from the market’s daily moves. According to Cramer, people who trade these options “are debilitated. They are, they believe the long term means you gotta hold it to the afternoon. Uh, these people I feel bad for them because they’re losing fortunes, they don’t know what they’re doing.”
He believes that day trading is more “addictive” than online gambling. “Depression, anxiety, all the things that are tell-tale of how to wreck your life are now part of our market,” believes Cramer. In fact, according to him, options trading needs to be talked about more. Cramer pointed out that “$538 million is options! Out of $1.9 billion. $538 million! Crypto is $268 million! Their next big line is margin interest! $220 mil! Why aren’t people talking about this?”
According to Cramer, “These people are losing a lot of money. And maybe they ought to take a little more long-term approach. We have to say, look, if you think that you can trade up against professionals, and the professionals have software, the professionals have algorithms, the professionals know more than the people who are day trading. That’s what I’m saying.” However, he does believe that “you can balance it. You can do some of this stuff for fun if you want to. But my father was wiped out by trading the National Video. Now go Google National Video. He did day trading for it all the way down.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on Friday.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
17. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders In Q3 2024: 31
Dow Inc. (NYSE:DOW) is one of the biggest chemical companies in the world. Its shares are down 27.8% year-to-date since the broader economy has struggled with slow output. However, Dow Inc. (NYSE:DOW) enjoys a wide moat in its industry through its sizable resources. As of its latest quarter, the firm had total assets worth $59.3 billion which creates a wide moat for it to benefit from a recovery in the industrial sector. Dow Inc. (NYSE:DOW) has also struggled with the economic slowdown in Europe and the slowdown in the packaging industry driven by factors such as food inflation. Here’s what Cramer said:
“But you look at Dow Chemical, here we are, again, 52-week low, down 29% for the year, yield’s 7.1%, obviously CEO just buys stock, will be unlikely that it will do anything bad to the yield. But that’s the real economy, or is the real economy Costco? You know it’s so hard to figure out what the real economy is! So it’s a pastiche, if not mosaic of many different companies.”
16. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders In Q3 2024: 32
Nucor Corporation (NYSE:NUE) is an American steel company that sells manufactured products and iron-based raw materials. Steel has been one of the poorest-performing sectors in the American economy in 2024. Steel spot prices have struggled throughout 2024, leading to Nucor Corporation (NYSE:NUE)’s peers such as US Steel posting disappointing earnings. Amidst industry troubles, the firm has kept up with stock repurchases despite the fact that its shares have lost 33.6% year-to-date. These repurchases were also on Cramer’s mind as he noted:
“Well Nucor bought a ton of stock when it was much much higher. And in many of the greats are going down in this country. If you looked at Nucor which is obviously the gold standard. I mean this company has lost 34% of its value this year and that’s an example Carl of why if you really think that the Fed made a mistake, you would say well listen I’m looking at that company which is incredibly important for construction. Or incredibly important for, uh, every single manufacturing plant in this country. And it shows you, look out, we’re, we’re showing real weakness there. So we’ve got an economy that’s weak and an economy that’s strong. It’s hard to reconcile.”
15. Macy’s, Inc. (NYSE:M)
Number of Hedge Fund Holders In Q3 2024: 38
Macy’s, Inc. (NYSE:M) is a mega grocery store company with a presence in America and the Middle East. As is the case with any retailer, volumes and same-store sales are key to its hypothesis. Macy’s, Inc. (NYSE:M) has struggled throughout 2024 with sluggish volumes, which have also impacted the bottom line as the firm has resorted to promotions to drive sales. Its stock sank by 10% in December after it cut profit per share guidance to $2.25 to $2.50 from an earlier $2.34 to $2.69. Macy’s, Inc. (NYSE:M) is also facing pressure from activist investors to sell non-performing assets, and any progress on this front could drive the shares higher. Here’s what Cramer said:
“You know we have a Walmart economy but then if you go to Macy’s, and Macy’s a good company, but it’s now like it’s so small.”
14. Jabil Inc. (NYSE:JBL)
Number of Hedge Fund Holders In Q3 2024: 45
Jabil Inc. (NYSE:JBL) is a contract manufacturer that not only caters to the needs of the information technology industry but is also building exposure to GLP-1 weight loss drugs. These two industries are among the hottest in America and in Europe right now, which sets the firm up well for the future. Yet, at the same time, not all data centers are AI data centers. The non-AI data center industry has faced a marked slowdown in today’s high interest rate era, which makes it unsurprising that Jabil Inc. (NYSE:JBL)’s shares are up by a modest 13.16% year-to-date. Cramer believes the firm has been overlooked by today’s frenzied markets:
“Lost in the shuffle this week, like the Ben Swinburne piece, was Jabil’s quarter. Jabil’s not a small company. Bank of America raised its price target today from $150 to $165. This is good. They do two things. They build data centers. And they build the factories for GLP-1. Which you know we can’t get enough of. So, it’s just one of these where had it been on a normal day, this stock would have been up 25, it was up a lot. But this company is in the sweet spot when you’re doing GLP-1 and you’re doing data centers. Two strongest parts of the economy.”
13. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders In Q3 2024: 54
DraftKings Inc. (NASDAQ:DKNG) is one of the earliest movers in the fast-growing online sports betting industry. This has enabled it to carve out a sizable market share which is evident through its 32% market share as per EKG. DraftKings Inc. (NASDAQ:DKNG), along with rival FanDuel commands a 67% online betting market share. The firm’s performance is dependent on consumer discretionary income, and a favorable regulatory environment. Cramer believes that even though online gambling might be addictive, it is better than zero-day options. We discussed his remarks about the options in detail in the introduction to this piece, and here’s what the CNBC host said:
“Jason Robins is more responsible. He’s the CEO of DraftKings. He’s a more responsible person when it comes to gambling than zero day options. What is that? Zero-day thirty!”
12. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders In Q3 2024: 55
FedEx Corporation (NYSE:FDX) is a global logistics and shipping company that ships parcels and provides supply chain management and other associated services. Its stock, which is up by a modest 9.3% year-to-date has struggled because of the premium nature of its services. FedEx Corporation (NYSE:FDX) promises fast deliveries at a higher price tag, but price-conscious customers have preferred lower-priced but slower services. These struggles have led to multiple earnings misses at a time when FedEx Corporation (NYSE:FDX) is seeking to combine its Ground and Express delivery businesses. Cramer has faith in the firm’s CEO:
“That is wealth creation there. I was, really, praising Raj Subramaniam last night because, I don’t want to call the multiples same for less-than-truckload, which is what they’re spinning off, but this business which is the gem of the group, would get even higher multiple. And the multiples are inflated, he’s taking advantage of it.
“He’s creating, by the way, he has, there was an amazing chart this morning on Frank Holland’s show, which I love, which showed the difference between FedEx and UPS. FedEx is up 32% during the period that Raj had been there. And then get this. Uh UPS is down 31%.
“And this man, Raj, is so smart, I was with Fred Smith who founded the company, this weekend, and, is, you know I think a great man. You know he’s done so much, you know, Yale, uh war hero in Vietnam, Silver Star, then comes back, down to his last five thousand for FedEx which was a [inaudible] that he had at Yale. He gambles, goes back to $27,000, comes back and creates this amazing company. There is no distance between, Mr. Smith and what Raj is doing. And I’ve got to tell you, I think this is very exciting for shareholders since this man has come in. Uh, they’ve got great scale. The only countries that they’re not in are countries that they are not allowed to ship to, like North Korea. What a juggernaut. Really terrific. Great American story.”
11. United States Steel Corporation (NYSE:X)
Number of Hedge Fund Holders In Q3 2024: 57
United States Steel Corporation (NYSE:X) is a steel company with a presence in the US and Europe. Along with falling steel prices, the firm’s narrative in 2024 has also been driven by its merger with Nippon Steel. Nippon plans to buy United States Steel Corporation (NYSE:X) for a $14.6 billion price tag and make it a subsidiary. The deal has galvanized United States Steel Corporation (NYSE:X) shareholders as the firm has struggled with weak economies worldwide, but it has also raised concerns about an iconic American firm making its way into foreign hands. Cramer commented on the link between United States Steel Corporation (NYSE:X) and the economy:
“Others I’m looking at, uh, what’s going on in large industries. Like if you look at US Steel, it’s obviously very bad.
“David, what did I tell you. Small business, you know, is the backbone of the economy. Is running so hot, that there are a lot people say wow, you know what, maybe we do not need another rate cut. But then big business, if you looked at US Steel, it’s a tell that boy, we’re in trouble.
“Look, I mean it’s a seven billion dollar company, I don’t wanna go overboard.”
10. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders In Q3 2024: 61
Novo Nordisk A/S (NYSE:NVO) is a Dutch pharmaceutical company with a key presence in the weight loss market through Wegovy which has enabled it to grow revenue by 31% between 2022 and 2023. However, Novo Nordisk A/S (NYSE:NVO) has struggled to compete with Eli Lilly’s products, and it has had to lower Wegovy prices to keep volumes up. Another potential headwind for the firm could be the US government deciding to include weight loss drugs under Medicare. Cramer commented on a recent trial of Novo Nordisk A/S (NYSE:NVO)’s weight loss drug which missed investor expectations of reducing weight by 25%:
“No, I thought it was going to do 25, it was obviously, uh, something that got too hyped. Lilly is better, and that’s why Lilly’s stock is up, you know at one point Lilly’s stock was up by 80. That seemed to be aggressive, but Lilly’s got the better data and so therefore this is one of those where whoever loses the most wins.
“I mean Novo was this, this was a lot more than we thought that you know what they have it and they can equal or, or exceed Lilly. And they can’t.
9. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders In Q3 2024: 63
Healthcare benefits manager CVS Health Corporation (NYSE:CVS) has been a regular appearance on Jim Cramer’s morning show recently. This is because the worsening public sentiment against benefits managers and President-elect Trump’s aim to ‘take down the middleman’ have created jitters among investors. CVS Health Corporation (NYSE:CVS) has been particularly important since not only has it struggled with high costs that have prompted a potential spin-off of its Medicare business, but the firm has also been sued by the Justice Department for contributing to the opioid crisis. This suit has consistently caught Cramer’s attention:
“I mean it’s an existential lawsuit. I mean, DOJ I think has had it with the company. They’re gonna make that to use an example. That company’s balance sheet, Intel’s balance sheet, is something that looks like a nightmare. Intel’s balance sheet is a nightmare. Why aren’t we seeing cash flow?
“CVS has a huge amount of debt. Intel has a huge amount of debt. Their cash flows are challenged, both companies.”
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders In Q3 2024: 68
Intel Corporation (NASDAQ:INTC) is the world’s largest integrated chip manufacturer which designs and manufactures its chips. However, while prestigious, this business model also comes with high operating costs due to the need to operate and maintain expensive foundries. These costs have been at the core of Intel Corporation (NASDAQ:INTC)’s narrative in 2024 as a PC market slowdown has hurt the company’s income statement. Simultaneously, its inability to capitalize on the AI market hasn’t won Intel Corporation (NASDAQ:INTC) any fans. With former CEO Pat Gelsinger out, here’s what Cramer shared:
“I mean it’s an existential lawsuit. I mean, DOJ I think has had it with the company. They’re gonna make that to use an example. That company’s balance sheet, Intel’s balance sheet, is something that looks like a nightmare. Intel’s balance sheet is a nightmare. Why aren’t we seeing cash flow?
“CVS has a huge amount of debt. Intel has a huge amount of debt. Their cash flows are challenged, both companies.
“Balance sheet says no, that it can’t be [THE SAME COMPANY A YEAR FROM NOW] I do know that President-elect Trump could use that an example of why we shouldn’t have government choosing favors. And I didn’t want that, I told Secretary Raimondo over and over again, I said these balance sheet is no good. Gelsinger’s no good.
“We can’t rely on Taiwan Semi. No we cannot. But Gelsinger, uh, was uh, he believed in alchemy.”
7. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders In Q3 2024: 68
Lennar Corporation (NYSE:LEN) is a mega home builder whose fate depends on the Fed’s interest rate cycle. This dependency was highlighted in the firm’s Q3 earnings in December. Since the earnings report, Lennar Corporation (NYSE:LEN)’s shares have lost 8.8% and are down by 22.7% over the month. Volatile mortgage rates are at the heart of the firm’s troubles, with housing inventories continuing to grow while demand falls. Cramer’s remarks about Lennar Corporation (NYSE:LEN) revolved around the housing industry and what he believes lies ahead for the crucial sector:
“When it comes to housing, we’re going to see a decline in the price of housing as we know Lennar and Tol. Because they can’t move the houses.
“These Tol numbers went from a million to nine hundred and fifty but it’s not going in the right direction. Lennar, you know the guidance, they didn’t give you the guidance. The guidance was not the guidance.
“You’re building a supply of homes. Which is really what causes a top.”
6. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders In Q3 2024: 75
Costco Wholesale Corporation (NASDAQ:COST) is a discount retailer that benefits in a tight consumer economy where buyers are struggling with high prices. This has been the case in 2024 as well, reflected in its share price performance of +46.6% year-to-date. However, while Costco Wholesale Corporation (NASDAQ:COST) benefits from higher demand for low-priced items, it also struggles with margins when consumers hold back on big-ticket purchases. This was evident in the firm’s fiscal fourth quarter when Q4 revenue of $79.70 billion fell short of analyst estimates of $79.97 billion. Yet, fiscal Q1 revenue of $62.15 billion beat estimates of $62.08 billion due to growth in bulk and discounted sales. Cramer, for his part, is a fan of Costco Wholesale Corporation (NASDAQ:COST)’s management transition:
“Costco’s method of transition is the best I’ve ever seen. They go for the people who have the most heart and soul of the company, that have done well and that’s who gets the top job.”
5. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders In Q3 2024: 75
NIKE, Inc. (NYSE:NKE) is one of the most well-known apparel retailers in the world. However, the firm has faced nothing but struggles recently as its shares are down by 28% year-to-date. NIKE, Inc. (NYSE:NKE)’s operations have been beset with troubles throughout 2024. These troubles have come on the back of under-performing products that have suffered from competition from shoes with thick foam soles. In response, NIKE, Inc. (NYSE:NKE), under its new CEO Elliot Hill, has embarked on a turnaround strategy. This strategy aims to bring the firm back to its high-quality sports business and improve ties with retailers after an ill-fated push to direct-to-consumer. Cramer commented on all these factors:
“It was down, it was up five, and down five, people couldn’t make up their mind but I have.” “How much value did John Donahue truly destroy in four years? I mean that was the underlying notion of the whole conference call. This going of he belongs in the CEO wall of shame, this move to go towards direct-to-consumer eviscerated the long term partners of Nike who were mentioned one after another. And the company got away from away. I thought this was music. What do you think they got away from? Sports.
“I don’t know but this is like when Stark Industries, the defense company, got out of the munitions business. Really rather extraordinary.
“I was there, I took it to a Sell. Now the good news is that this company now realizes that it’s in the sports business. I’m not quite sure what business they were in, but in the meantime, on hokah, these took the share in these great places like Footlocker where Mary Dillon was getting second rate Nike, now she’s getting first rate. This man is doing everything right in terms of restoring, but there’s like a Starbucks situation where you get Brian Niccol and he’s trying to deal with all the different things now we get the union strike but I think Nike’s going to go in the right direction, but they have everything that could go wrong, from inventory, to slighting their partners, getting away from sports.
“This was a devastating conference call. People remember the Mark Parkley calls. I used to talk about how they were orchestrated because the business was so strong. And Donahue just basically, uh, made it into tool and dye machine.
“No, these guys took themselves out of the running, it’s really rather remarkable and sad. Because this is a great company. Now I think this guy is terrific. And he said all the right things. But what he basically also said was listen, there’s no quick turnaround here because we really screwed up. We’ve lost our mission, we’re moving back to our mission. . .Donahue comes from . . . .people who are from consulting firms. Who don’t have the heart and soul of what this company was about. And I think we’re gonna get away from that. I think we’re gonna get back to the idea of picking the best person internally, like Costco.”
4. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Number of Hedge Fund Holders In Q3 2024: 75
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a pharmaceutical firm that created substantial headlines in January after its gene therapy Casgevy secured FDA approval to treat Sickle Cell disease. This is the first treatment of its kind, and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s approval also generated tailwinds for the broader gene editing industry. The firm also relies on cystic fibrosis to generate 92% of its revenue. Sickle Cell and cystic fibrosis play key roles in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s hypothesis, and the sizable contribution of the former means that the firm has to maintain focus on developing new treatments. One such drug is a non-addictive painkiller, and here’s what Cramer said about the drug’s trial:
“Okay I want to put this in the context. Many companies, many people, everyone was hoping that Vertex had the holy grail. That they had some painkiller that was not addictive. Now Vertex will argue that the trial that came out which showed no difference with the placebo did not, it was not set up right. And frankly, you shouldn’t use it. However Barclays comes out this morning, $509 down to $418, says it was the worst case scenario. I know that Vertex management is incredibly responsible, but when you see management at odds with the street, I tend to want to believe the street.
“But what’s a shame about this is if this is true David we cannot get to the root of this opiate addiction in this country.
“And this was the hope, and the hope now seems to be. . . .
“It [THE STOCK] probably could go lower. They have a great cystic fibrosis franchise. They’re a great company. And I want to go with them to some degree that maybe things are okay. But this is hardly down for the year. I think it can go still lower.”
3. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders In Q3 2024: 76
The Walt Disney Company (NYSE:DIS) is one of the most iconic media and entertainment companies in the world. Throughout the year, the firm has struggled with the headwinds impacting the broader media industry. These headwinds include dropping asset values of legacy media assets and struggles in the online streaming market due to Netflix’s dominant position. For The Walt Disney Company (NYSE:DIS), this saw a 22% operating income drop in Q1 which came due to an 8% revenue drop. However, the firm appears to be turning things around successfully. During Q3, its streaming division delivered a profit ($47 million) for the first time. Cramer is also optimistic about The Walt Disney Company (NYSE:DIS) as he mentioned Morgan Stanley’s Benjamin Swinburne naming the stock as his firm’s 2025 top entertainment pick:
“Watch for Disney. Disney is getting big in the cruise line business. And when they get to twelve ships it will begin to impact their bottom line. I think Disney’s come down enough here that you should be a buyer aggressively. $111, it’s pulled back nicely from its high and it’s a great buy. Because they’ve got great film schedule.
“That Swinburne piece was ignored because the market was very bad that day. I felt bad, he did a lot of work on that. I think he probably went home and said, you know what I did so much work and no one cared.”
2. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders In Q3 2024: 106
Eli Lilly and Company (NYSE:LLY) is one of the hottest stocks in the pharmaceutical industry because of its strong position in the weight loss drug market. Its shares have gained 183% since the start of 2022. Along with weight loss drugs, Eli Lilly and Company (NYSE:LLY) also targets other lucrative disease markets such as cancer. These provide it with a portfolio of pricey treatments that help drive revenue. However, looking ahead, growing competition in the weight loss market particularly through affordable generics could create headwinds for Eli Lilly and Company (NYSE:LLY). Cramer’s a believer, though:
“Lilly is better [COMPARED TO NOVO], and that’s why Lilly’s stock is up, you know at one point Lilly’s stock was up by 80. That seemed to be aggressive, but Lilly’s got the better data and so therefore this is one of those where whoever loses the most wins. And Lilly’s going to win.
“Now I can’t wait to speak to David Ricks at the JPMorgan healthcare conference, in a couple of weeks because what you’re gonna find is they have so much in the pipe, so many different kinds. People continue to underestimate what Mr. Ricks is working on at Eli Lilly. You know Carl these drugs are going to be very very big again as we get toward a pill, and as we get toward ones that don’t kill, that don’t take a lot of protein away. It’ll be hard pressed for Bobby Kennedy Jr. to say that diet and exercise are enough.
“I mean Novo was this, this was a lot more than we thought that you know what they have it and they can equal or, or exceed Lilly. And they can’t. Lilly up 44. I go back to what the great Ken Langone told me, he thinks it’s a billion dollar company. You know Ken’s one of the great healthcare investors of our time. Trillion dollar company, sorry, and if you believe like I do that Ken Langone is an amazing investor then you still buy Eli Lilly which is why we bought it when it was much lower for the charitable trust.”
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders In Q3 2024: 202
Alphabet Inc. (NASDAQ:GOOGL) is the embattled big tech company whose dominance in the internet search and advertising markets has created trouble for the shares in 2024. Wall Street is watching as the Justice Department takes on Alphabet Inc. (NASDAQ:GOOGL) and claims that the firm is a monopoly. These headwinds led to a modest +26.9% year-to-date share price performance in December before the firm’s big quantum computing chip announcement. Now, Alphabet Inc. (NASDAQ:GOOGL)’s shares are 38% year-to-date due to the rush surrounding quantum computing stocks. While Cramer doesn’t think investing in quantum computing is worth it, he is a fan of Alphabet Inc. (NASDAQ:GOOGL)’s new CFO Anat Ashkenazi:
“And Ashkenzi had moved to Google. She’s an unbelievably smart person. By the way, the Google conference call, no offense to Ruth Porat, you know who I think is fantastic, but the Google conference call was as good as the Lilly was bad. Because she was running it. And she’s a genius. I don’t know if you’ve ever got a chance to meet her because I’ve met her at the CFO council, she dazzled me. I felt like, midway through the conversation, I think I basically said you know what I’m stupid you’re smart. I just kind of gave up.”
GOOGL is a stock Jim Cramer recently mentioned. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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