Jim Cramer is Bearish on These 12 Stocks

Published on February 3, 2024 at 11:45 am by Fahad Saleem in Hedge Funds, News

In this article, we will take a detailed look at Jim Cramer is Bearish on These 12 Stocks. For a quick overview of such stocks, read our article Jim Cramer is Bearish on These 5 Stocks.

After recommending investors to go easy on mega-cap tech stocks and take some profits on them during the start of 2024, Jim Cramer is back to praising the strengths and resilience of these companies after major technology stocks part of the Magnificent Seven group started posting earnings. Cramer recently said in a program on CNBC that we have reached a strange “confluence of events” that makes it hard to “value anything.” Cramer praised strong earnings reports from Apple, Microsoft, Meta and Amazon. Cramer advised investors not to worry about high valuations of these companies and said it does not make sense to sell these stocks just because these companies are “big.” Cramer said these major technology companies have not “fooled” their way to such high valuations and there was nowhere else to go for these stocks “but up.”

Cramer’s Thoughts on Apple Inc (NASDAQ:AAPL)

Jim Cramer’s message to market skeptics who believe tech stocks are headed for a crash is this: “enough already!”

Cramer said Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and Meta Platforms Inc (NASDAQ:META) generated about $330 billion in collective revenue and about $58.5 billion in collective profits in the recently reported quarter. Cramer said it would not make sense to compare these companies with those that collapsed during the dot com bubble

On a side note, Cramer shrugged off China fears and recommended investors to “own” Apple Inc (NASDAQ:AAPL) shares and not trade it.

Cramer Says Tesla Does Not Deserve to Be in the Magnificent Seven Group

Cramer yet again criticized the market’s fears around concentration of the broader stock market gains in a handful of companies also known as the Magnificent Seven group of stocks. Cramer said it does not make sense to worry about market gains of major companies and compare them to smaller companies. Cramer, however, was clear about Tesla as he believes the company no longer deserves to be in the Magnificent Seven group. Cramer said Tesla’s exit from the Mag. Seven group of stocks was made easier by the judge who recently rejected Elon Musk’s $56 billion pay package.

Despite this bullish outlook on tech stocks, there are some companies Jim Cramer is bearish on. In this article we decided to talk about those stocks.

For this article we saw several latest programs of Jim Cramer and picked 12 stocks he’s bearish on. For each stock we talked about the reason Jim Cramer gave for his bearish stance. We ranked these stocks based on ascending order of the number of hedge fund investors. Why? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

12. Invesco Mortgage Capital Inc (NYSE:IVR)

Number of Hedge Fund Investors: 7

Jim Cramer, when asked about Invesco Mortgage Capital Inc (NYSE:IVR) in a recent program, said he does not know “what mortgages they have” and therefore cannot recommend the stock.

“And I suggest you do not own it.”

Over the past one year Invesco Mortgage Capital Inc (NYSE:IVR) shares have declined by 41%.

As of the end of the third quarter of 2023, seven hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Invesco Mortgage Capital Inc (NYSE:IVR). The most notable hedge fund stakeholder of Invesco Mortgage Capital Inc (NYSE:IVR) during this period was Sander Gerber’s Hudson Bay Capital Management which owns a $4.3 million stake in Invesco Mortgage Capital Inc (NYSE:IVR).

11. Riot Platforms Inc (NASDAQ:RIOT)

Number of Hedge Fund Investors: 17

Jim said “I don’t trust it” when he was asked about Riot Platforms Inc (NASDAQ:RIOT) during his program on CNBC. Cramer said he just “checked in” with Larry Williams “again” and Williams said Bitcoin has not bottomed yet and you should “stay away.”

Last month, Riot Platforms Inc (NASDAQ:RIOT) said it produced 619 bitcoins in December 2023, down 9% on a year-over-year basis.

As of the end of the third quarter of 2023, 17 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Riot Platforms Inc (NASDAQ:RIOT)

10. AMC Entertainment Holdings Inc (NYSE:AMC)

Number of Hedge Fund Investors: 18

A few days ago a caller told Jim Cramer during a program on CNBC that “AMC Entertainment Holdings Inc (NYSE:AMC) has got me in a hole.” Cramer commented:

“You are not doing well at all.”

Cramer said that we “don’t want AMC Entertainment Holdings Inc (NYSE:AMC)” because the company is not “doing well.” Cramer said we want to own stocks that “go higher.”

“Let’s understand that consumers are not going to the movies like they used to.”

Cramer also pitched Netflix as a stock to buy instead of AMC Entertainment Holdings Inc (NYSE:AMC).

9. US Silica Holdings Inc (NYSE:SLCA)

Number of Hedge Fund Investors: 20

Jim Cramer’s reply was a resounding “No” when he was asked about US Silica Holdings Inc (NYSE:SLCA) during his program a few days ago.

Cramer said that you can’t own this stock in this state (New Jersey).

The stock has declined by about 12% over the past one year.

As of the end of the third quarter of 2023, 20 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in US Silica Holdings Inc (NYSE:SLCA). The most notable stakeholder of US Silica Holdings Inc (NYSE:SLCA) during this period was DE Shaw which owns a $9 million stake in US Silica Holdings Inc (NYSE:SLCA).

8. Chegg Inc (NYSE:CHGG)

Number of Hedge Fund Investors: 25

Education technology company Chegg Inc (NYSE:CHGG) ranks eighth in our list of the stocks Jim Cramer is bearish on.

“I think it’s an exploratory situation, but I cannot press the buy button,” Cramer said of Chegg Inc (NYSE:CHGG).

As of the end of the third quarter of 2023, 25 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Chegg Inc (NYSE:CHGG).

Cramer is bearish on Chegg but he’s recommending investors to buy and hold Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and Meta Platforms Inc (NASDAQ:META).

7. Plug Power Inc (NASDAQ:PLUG)

Number of Hedge Fund Investors: 26

Jim Cramer is highly bearish on Plug Power Inc (NASDAQ:PLUG). In a latest program, while talking about a few renewable energy stocks, Cramer said:

“Plug Power? ….Grenade! Fire in the hole!”

In December 2023 Cramer had categorically said that he was pulling the plug on Plug Power Inc (NASDAQ:PLUG).

As of the end of the third quarter of 2023, 26 hedge funds tracked by Insider Monkey had stakes in Plug Power Inc (NASDAQ:PLUG).

6. Solaredge Technologies Inc (NASDAQ:SEDG)

Number of Hedge Fund Investors: 27

SolarEdge Technologies, Inc. (NASDAQ:SEDG) ranks sixth in our list of the stocks Jim Cramer is bearish on. Cramer said “no” when he was asked about the Israel-based solar technology company.

Cramer said the stock is too volatile as it “bounces four points and then it goes down again.”

Cramer said this stock is too hard to own.

Out of the 910 hedge funds tracked by Insider Monkey, 27 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in SolarEdge Technologies, Inc. (NASDAQ:SEDG).

Unlike Solaredge, Jim Cramer is bullish on Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and Meta Platforms Inc (NASDAQ:META).

During its Q3 earnings call in November 2023, Solaredge management talked about guidance and business updates:

“We expect our annual non-GAAP tax rate for the entire 2023 to be within 22% to 24%. GAAP net loss for the third quarter was $61.2 million compared to a GAAP net income of $119.5 million in the previous quarter and GAAP net income of $24.7 million in the same quarter last year. Our non-GAAP net loss was $31 million compared to a non-GAAP net income of $157.4 million in the previous quarter, and a non-GAAP net income of $54.1 million in the same quarter last year. GAAP net diluted loss per share was $1.08 for the third quarter compared to a GAAP net diluted earnings per share of $2.03 in the previous quarter, and a GAAP net diluted earnings per share of $0.43 for the same quarter last year. Non-GAAP net diluted loss per share was $0.55 compared to a non-GAAP net diluted earnings per share of $2.62 in the previous quarter, and non-GAAP net diluted earnings per share of $0.91 in the same quarter last year.

As mentioned by Zvi, we expect that the stabilized solar revenue levels after the inventory correction has run its course will be approximately $600 million to $700 million quarterly. Under this scenario, corporate non-GAAP gross margins are targeted to be 30% to 32%, including approximately 500 basis points of benefits from IRA manufacturing tax credit and operating profit margins are targeted to be at 11% to 14% after implementing cost reduction activities. I reiterate that this scenario is based on no improvement in demand from our third quarter sell through levels and assumes no incremental revenues or margin from new products. Turning now to the balance sheet. As of September 30, 2023, cash, cash equivalents, bank deposits, restricted bank deposits and investments were $1.5 billion.”

Read the entire earnings call transcript here.

ClearBridge Select Strategy made the following comment about SolarEdge Technologies, Inc. (NASDAQ:SEDG) in its Q3 2023 investor letter:

“Solar energy technology companies SolarEdge Technologies, Inc. (NASDAQ:SEDG) and Shoals, meanwhile, saw headwinds from destocking in the U.S. and Europe. U.S. demand could slow further due to new net metering rules that reduce the value to consumers from sending excess residential solar energy back to the grid. SolarEdge, which makes inverters for solar systems as well as residential and commercial battery systems, is also facing rising battery competition in the U.S. from Tesla.”

Click to continue reading and see the Jim Cramer is Bearish on These 5 Stocks.

Suggested Articles:

Disclosure. None. Jim Cramer is Bearish on These 12 Stocks was initially published on Insider Monkey.

Headline NYSE:IVR NYSE:AMC NYSE:SLCA NYSE:CHGG Show more...

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up