In this article, we discuss the 10 stocks that Jim Cramer doesn’t like. If you want to read about some more stocks that Jim Cramer does not like, go directly to Jim Cramer Doesn’t Like These 5 Stocks.
Jim Cramer is one of the most renowned finance personalities on television. Despite over two decades in the public eye, not much is known about the personal life of the journalist investor and former hedge fund manager who once worked at Goldman Sachs. In a recent interview, Cramer shared his experience of becoming a millionaire aged just 28 and how his family reacted to the news. According to the famed investor, his mother was less than thrilled at his riches since she believed that money was not the most important thing in life.
Cramer’s Mother Advised Him to Do Something “Meaningful” in Life
Cramer also revealed that his mother advised him to use his riches for good, pursuing something more meaningful in life like writing. In the years since, Cramer, now 67, has made this wish of his mother come true as well, authoring over a dozen books about investing throughout his career, writing a daily investing column for news platform CNBC, and also founding his own finance news website. Cramer noted that he has written over 3,000 words a day for over twenty years to get to where he is.
The capital of experience that Cramer has accumulated over the years has served him in good stead during his stint in broadcast journalism. He has cultivated an active following that hangs to his every word, and for good reason, as he has a habit of making the right calls. During his recent show on CNBC, Cramer addressed the heat that Federal Reserve Chair Jay Powell was taking as the central bank prepared to raise interest rates by 50 basis points, seeking to curb inflation but inadvertently slowing down the economy.
Cramer said that Powell “did more to save us from a pandemic-induced depression than anyone else in the government”. He also highlighted the “beaten-down state of previously inflated stocks shows the Fed chief is on the right track to corralling inflation”. Cramer has claimed that the present market situation is “bad for the bulls but good for the economy and the country”. Some of the stocks that Cramer does not like in this volatile market include Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), and AT&T Inc. (NYSE:T).
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.
An extensive database of around 900 elite hedge funds tracked by Insider Monkey was used to identify the popularity of each stock among hedge funds.
Jim Cramer Doesn’t Like These Stocks
10. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 14
GameStop Corp. (NYSE:GME) provides games and entertainment products. Cramer gave the stock a Sell recommendation during the Discussed Stock segment of his show on May 3, per the Mad Money Stock Screener. Previously, Cramer has been bearish on the firm as well, calling it a “nothing” company and a “meme stock”. Cramer believes that as hedge funds move on, meme stocks will start trading according to their fundamentals again, warning of the risks associated with investing in these firms.
On March 18, Wedbush analyst Michael Pachter kept an Underperform rating on GameStop Corp. (NYSE:GME) stock and lowered the price target to $30 from $45, predicting the firm would see limited success in developing an NFT marketplace.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in GameStop Corp. (NYSE:GME) with 1.6 million shares worth more than $238 million.
Just like Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), and AT&T Inc. (NYSE:T), GameStop Corp. (NYSE:GME) is one of the stocks that elite investors are monitoring as inflation continues to soar.
In its Q1 2022 investor letter, Bronte Capital, an asset management firm, highlighted a few stocks and GameStop Corp. (NYSE:GME) was one of them. Here is what the fund said:
“GameStop Corp. (NYSE:GME) is a retailer of video games on DVD ROM trying hard (and maybe with some success) to reinvent itself as an alternative computer game distributor. The company raised enough money that bankruptcy is not an immediately likely outcome. (GME would have gone bankrupt except for the willingness of largely retail investors to provide them with much more cash.)
Both have bad financial results. Gamestop’s last financial results were terrible. And both stocks more than doubled very rapidly in March from market caps that were absurd to market caps that are more absurd. We are of course completely aware that they can double again and again after that. Their valuations are absurd but if you double the price they are not twice as absurd. They are just similarly disconnected from reality.
The reason we want to talk about them is that it is indicative of what is going on. GameStop Corp. (NYSE:GME), the most meme of all stocks, announced a possible stock split and the stock, after market that day, traded up 17 percent. We could joke that every child knows that cutting a pizza into more slices yields more pizza. But in this market, not accepting that stock splits add value is a recipe for losing money.”
9. Indie Semiconductor, Inc. (NASDAQ:INDI)
Number of Hedge Fund Holders: 15
Indie Semiconductor, Inc. (NASDAQ:INDI) markets semiconductor products. Cramer gave the stock a Sell rating during the Lightning Round segment of his show on May 2. Per the former hedge fund manager, the two firms worth owning in the chip space included NXP Semiconductors and On Semiconductor. Cramer made the comment in response to a question about his views on the company.
On April 20, Deutsche Bank analyst Ross Seymore kept a Buy rating on Indie Semiconductor, Inc. (NASDAQ:INDI) stock and lowered the price target to $13 from $16, noting that investor concerns around a cyclical slowdown in the chip industry were likely to persist.
At the end of the fourth quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $78 million in Indie Semiconductor, Inc. (NASDAQ:INDI), up from 12 the preceding quarter worth $64 million.
In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Indie Semiconductor, Inc. (NASDAQ:INDI) was one of them. Here is what the fund said:
“Indie Semiconductor, Inc. (NASDAQ:INDI) is a fabless designer, developer, and marketer of automotive semiconductors for automated driver assistance systems, user experience, and electrification applications. Indie leverages its cross-domain semiconductor expertise in analog, processing and power chips to integrate multiple chips and capabilities into a single package and offer its customers lower cost products in a smaller form-factor. Indie Semiconductor, Inc. (NASDAQ:INDI) has strong market share in applications such as Apple CarPlay and ultrasonic parking assist with multiple contracts ramping in the coming quarters in applications such as advanced lighting controls, telematics, and electrification. The stock rose on increasing investor recognition of the longer-term opportunity for the company, especially in light of the current automotive semiconductor supply shortage. Semiconductor content in cars is expected to grow substantially over the coming decade as automated safety features and electrification penetrate an increasing percentage of vehicles.”
8. Canopy Growth Corporation (NASDAQ:CGC)
Number of Hedge Fund Holders: 15
Canopy Growth Corporation (NASDAQ:CGC) produces and sells hemp-based products. Cramer gave the stock a Sell recommendation during the Lightning Round segment of his show on April 25. The journalist investor said that until the federal law regarding the legalization of cannabis was passed, owning the stock was not a good option. Cramer has also been bearish on other cannabis stocks in light of concerns around the passage of the cannabis legalization bill in the Senate despite the approval from the House.
On March 22, Barclays analyst Gaurav Jain downgraded Canopy Growth Corporation (NASDAQ:CGC) stock to Underweight from Equal Weight and lowered the price target to $6 from $9, underlining that the firm needed a big restructuring to stem cash bleed.
At the end of the fourth quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $62 million in Canopy Growth Corporation (NASDAQ:CGC), compared to 17 in the preceding quarter worth $90 million.
7. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 17
AMC Entertainment Holdings, Inc. (NYSE:AMC) owns and runs a movie theater business. Cramer was bearish on the company and gave it a Sell rating during the Discussed Stock segment of his show on May 3, per the Mad Money Stock Screener. Cramer has previously been bullish on the firm and appreciated the work that Adam Aron, the CEO of the company, was doing to help it grow. However, in light of a looming recession, Cramer has stopped recommending risky options to viewers.
On February 1, Benchmark analyst Mike Hickey kept a Hold rating on AMC Entertainment Holdings, Inc. (NYSE:AMC) stock without a price target. The analyst noted that the valuation of the firm remained at “extreme levels” compared to peers.
At the end of the fourth quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $328 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), the same as in the preceding quarter worth $252 million.
In its Q3 2021 investor letter, Bronte Capital, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE:AMC) was one of them. Here is what the fund said:
“AMC Entertainment Holdings, Inc. (NYSE:AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC Entertainment Holdings, Inc. (NYSE:AMC) in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”
6. Corsair Gaming, Inc. (NASDAQ:CRSR)
Number of Hedge Fund Holders: 18
Corsair Gaming, Inc. (NASDAQ:CRSR) markets gaming and streaming peripherals. Cramer gave the stock a Sell recommendation during the Discussed Stock segment of his show on May 3. He identified the shares as a “meme stock” and a “former market darling” that had become uninvestable due to the tightening policies of the central bank. He also underlined that there was “no fighting the Fed” and that the “Fed always won”. He said the rise in interest rates was bad news for the bulls but good for the overall health of the economy.
On April 22, Stifel analyst Drew Crum kept a Buy rating on Corsair Gaming, Inc. (NASDAQ:CRSR) stock but lowered the price target to $24 from $29, citing a slowdown in consumer demand across Europe as one of the reasons behind the target decrease.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Corsair Gaming, Inc. (NASDAQ:CRSR) with 660,700 shares worth more than $13 million.
Alongside Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), and AT&T Inc. (NYSE:T), Corsair Gaming, Inc. (NASDAQ:CRSR) is one of the stocks that hedge funds have on their radar in the earnings season.
In its Q4 2021 investor letter, Sterling Partners Equity Advisors, an asset management firm, highlighted a few stocks and Corsair Gaming, Inc. (NASDAQ:CRSR) was one of them. Here is what the fund said:
“Corsair Gaming, Inc. (NASDAQ:CRSR) is a global developer and manufacturer of high-performance gear and technology for gamers, content creators, and PC enthusiasts. Corsair delivers a full ecosystem of products; PC Components, Peripherals, Premium Streaming Equipment, and Smart Ambient Lighting. Corsair Gaming, Inc. (NASDAQ:CRSR) responded to the difficult sourcing and shipping environment by building inventory closer to its customers. Management believes that once this difficult supply chain is behind them their targeted growth and profitability targets will return. We believe in the growing gaming market globally and Corsair is positioned well to support this growing customer base with a platter of products.”
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Disclosure. None. Jim Cramer Doesn’t Like These 10 Stocks is originally published on Insider Monkey.
