In this article, we discuss the 5 stocks that Jim Cramer is bearish on. If you want to read our detailed analysis of these stocks, go directly to Jim Cramer Is Bearish on These 15 Stocks.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 47
Rivian Automotive, Inc. (NASDAQ:RIVN) develops and sells electric adventure vehicles. At the end of the fourth quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $9 billion in Rivian Automotive, Inc. (NASDAQ:RIVN).
Cramer was dismissive of Rivian Automotive, Inc. (NASDAQ:RIVN) during his show on March 4, calling the company the “poster child” of Western electric car companies that had been “losers for ages now” and had lost their “novelty” factor.
In its Q4 2021 investor letter, Greenlight Capital, an asset management firm, highlighted a few stocks and Rivian Automotive, Inc. (NASDAQ:RIVN) was one of them. Here is what the fund said:
“We made a material gain in Rivian Automotive, Inc. (NASDAQ:RIVN) as a result of its IPO. We met RIVN’s sponsors in 2018 as part of our continued work on electric vehicles, and were favorably impressed by their technology and discipline. In mid-2020, we made a small investment at a $10 billion valuation. In November, Rivian Automotive, Inc. (NASDAQ:RIVN) went public at a $70 billion valuation and traded to a peak valuation of $162 billion. We hedged in the options market to lock in a minimum valuation of about $120 billion for a good chunk of our position. While we are believers in the company, we did not have material exposure at year end.”
4. DocuSign, Inc. (NASDAQ:DOCU)
Number of Hedge Fund Holders: 49
DocuSign, Inc. (NASDAQ:DOCU) offers cloud-based software services. On March 4, Cramer gave his view of the company during the Discussed Stock segment of his show, noting that DocuSign was suffering from being a “COVID stock” and was actually a very good company with a very bad stock.
Elite hedge funds are bullish on DocuSign, Inc. (NASDAQ:DOCU) stock. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in DocuSign, Inc. (NASDAQ:DOCU) with 6.9 million shares worth more than $1 billion.
In its Q2 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and DocuSign, Inc. (NASDAQ:DOCU) was one of them. Here is what the fund said:
“DocuSign, Inc. (NASDAQ:DOCU) provides electronic signature solutions. The firm reported an excellent quarter and investors have appreciated the strong growth combined with the excellent margins the company has posted. DocuSign, Inc. (NASDAQ:DOCU) has a long runway of growth ahead and we believe that it remains in a favorable position to continue gaining market share from traditional manual and paper-based signature solutions.”
3. Okta, Inc. (NASDAQ:OKTA)
Number of Hedge Fund Holders: 52
Okta, Inc. (NASDAQ:OKTA) owns and runs an identity management platform. Hedge funds have been shedding the stock in recent months. At the end of the fourth quarter of 2021, 52 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in Okta, Inc. (NASDAQ:OKTA), compared to 62 in the preceding quarter worth $2.2 billion.
Cramer was bearish on Okta, Inc. (NASDAQ:OKTA) stock during his show on March 3, noting that investors had bet big on the company to deliver solid capital returns after a market selloff around growth stocks but had been disappointed as the fall had been too steep to make up quickly.
2. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 56
MongoDB, Inc. (NASDAQ:MDB) provides general purpose database solutions. Cramer discussed the stock ahead of the fourth quarter earnings report, labeling it as an option “not worth owning” during his show on March 4.
Hedge funds have been loading up on MongoDB, Inc. (NASDAQ:MDB) in recent months. At the end of the fourth quarter of 2021, 56 hedge funds in the database of Insider Monkey held stakes worth $2 billion in MongoDB, Inc. (NASDAQ:MDB), up from 47 in the previous quarter worth $2.1 billion.
1. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 70
AT&T Inc. (NYSE:T) provides communication, media, and technology services. At the end of the fourth quarter of 2021, 70 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in AT&T Inc. (NYSE:T), compared to 66 in the preceding quarter worth $3.2 billion.
During the Discussed Stock segment of his show on March 4, Cramer said that AT&T Inc. (NYSE:T) was a company with “uniquely terrible management” and he had no desire to touch the stock even though he would listen on the investor day of the firm for positive signals.
In its Q1 2021 investor letter, Nelson Capital Management, an asset management firm, highlighted a few stocks and AT&T Inc. (NYSE:T) was one of them. Here is what the fund said:
“Nelson Capital stayed busy in the first quarter, making several adjustments within our core portfolio. In the communication services sector, we sold AT&T Inc. (NYSE:T). Over the years, AT&T Inc. (NYSE:T) has made several poor acquisitions, especially in the content realm, leaving the company saddled with debt and unable to change directions.”
You can also take a peek at Forget Tesla (TSLA): 10 Cheap EV Stocks to Buy Now and 15 Best Consumer Discretionary Stocks to Buy Now.
