Jim Cramer Is Bearish On These 5 Stocks

In this article, we discuss 5 stocks that Jim Cramer is bearish on. If you want to see more stocks in this selection, check out Jim Cramer Is Bearish On These 10 Stocks. 

5. Joby Aviation, Inc. (NYSE:JOBY)

Number of Hedge Fund Holders: 19

Joby Aviation, Inc. (NYSE:JOBY) is a California-based vertically integrated air mobility company that specializes in manufacturing electric vertical takeoff and landing aircrafts optimized to deliver air transportation as a service. Joby Aviation, Inc. (NYSE:JOBY) is one of the stocks that Jim Cramer is lately bearish on. He mentioned the company in a December 16 Lightning Round, saying: 

“Joby Aviation … is like a Jules Verne story … Let’s leave it like a story and not think of it as a stock.”

On December 14, Joby Aviation, Inc. (NYSE:JOBY) announced the conclusion of its second of four System Reviews required by the Federal Aviation Administration as part of the company’s aircraft type certification program. This indicates that the company is on the path of certifying its electric vertical take-off and landing aircraft.

Deutsche Bank analyst Edison Yu on November 16 lowered the price target on Joby Aviation, Inc. (NYSE:JOBY) to $6 from $7 and reiterated a Hold rating on the shares following the Q3 results. Joby Aviation, Inc. (NYSE:JOBY) confirmed that FAA certification would drag on into late 2024, meaning commercial operations would start in 2025, the analyst wrote in a research note.

According to Insider Monkey’s third quarter database, 19 hedge funds were long Joby Aviation, Inc. (NYSE:JOBY), compared to 20 funds in the earlier quarter. The collective stakes in Q3 2022 decreased to $21.4 million from $30 million in Q2 2022.

4. Laredo Petroleum, Inc. (NYSE:LPI)

Number of Hedge Fund Holders: 20

Laredo Petroleum, Inc. (NYSE:LPI) is an Oklahoma-based independent energy company that specializes in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas. About Laredo Petroleum, Inc. (NYSE:LPI), Cramer said in a December 21 Lightning Round:

“Laredo is a second-rate oil producer. I prefer very much that you buy Pioneer, PXD, which I think is much stronger and the Charitable Trust owns it.”

On December 12, Raymond James analyst John Freeman lowered the price target on Laredo Petroleum, Inc. (NYSE:LPI) to $63 from $75 and maintained an Outperform rating on the shares. Laredo Petroleum, Inc. (NYSE:LPI) did not have the best quarter after experiencing some operational challenges, and subsequently shifted production guidance for the year lower due to offset fracs causing lackluster performance, the analyst told investors in a research note. 

According to Insider Monkey’s Q3 data, 20 hedge funds were bullish on Laredo Petroleum, Inc. (NYSE:LPI), compared to 24 funds in the last quarter. Israel Englander’s Millennium Management is the biggest position holder in the company, with 576,157 shares worth $36.2 million. 

3. PagSeguro Digital Ltd. (NYSE:PAGS)

Number of Hedge Fund Holders: 23

PagSeguro Digital Ltd. (NYSE:PAGS) is headquartered in São Paulo, Brazil, and the company provides financial technology solutions and services for consumers, individual entrepreneurs, and small and medium-sized companies in Brazil and internationally. On December 22, Jim Cramer spoke about PagSeguro Digital Ltd. (NYSE:PAGS), noting: 

“We have to remember it’s from Brazil, so therefore it’s politically unstable. I hate to just be so broad-sweeping as that … These are political issues.”

On November 23, PagSeguro Digital Ltd. (NYSE:PAGS) stock traded around 19% lower after reporting a Q3 revenue of $4.04 billion, which climbed 45.3% year-over-year but fell short of analysts’ estimates.

Cantor Fitzgerald analyst Josh Siegler on December 23 lowered the price target on PagSeguro Digital Ltd. (NYSE:PAGS) to $14 from $20 and kept an Overweight rating on the shares. The analyst expects the merchant acquiring industry to come under pressure in 2023 due to the high inflationary environment and slower consumer spending in Brazil. 

According to Insider Monkey’s Q3 data, 23 hedge funds were long PagSeguro Digital Ltd. (NYSE:PAGS), compared to 24 funds in the prior quarter. Daniel Patrick Gibson’s Sylebra Capital Management is the largest stakeholder of the company, with 10.60 million shares worth $140.3 million. 

Here is what Artisan Mid Cap Fund has to say about PagSeguro Digital Ltd. (NYSE:PAGS) in its Q1 2021 investor letter:

“We also reduced our position in PagSeguro. PagSeguro is making good progress establishing a fast-growing digital bank and expanding its Brazilian payments business despite the pandemic. However, the company’s growth initiatives will require another year of heavy investment spending in 2021. This comes as Brazil’s progress combatting COVID-19 trails many major economies’, casting a cloud over the broader economic outlook. Given these potential headwinds, we trimmed our position to fund higher conviction holdings.”

2. Teladoc Health, Inc. (NYSE:TDOC)

Number of Hedge Fund Holders: 27

Teladoc Health, Inc. (NYSE:TDOC) is a New York-based company that provides virtual healthcare services in the United States and internationally. Jim Cramer is recently bearish on Teladoc Health, Inc. (NYSE:TDOC), and he mentioned the company in his December 22 segment of Mad Money’s Lightning Round:

“I’ve used the product, I like it very much, but it is not a good situation.”

Although Teladoc Health, Inc. (NYSE:TDOC)’s Q3 2022 financial results outperformed on both the top and bottom lines, the company lowered its full-year 2022 revenue outlook to $2.395 billion-$2.41 billion from a prior outlook of $2.4 billion-$2.5 billion and a consensus of $2.41 billion. It is also forecasting a net loss per share of $61.40-$61.10.

On December 23, Truist analyst Jailendra Singh maintained a Hold rating and a $29 price target on Teladoc Health, Inc. (NYSE:TDOC). While investors have inquired about the cause of its 8.5% drop on December 22, which was attributed to weak quarter-to-date trends in BetterHelp Website traffic, the credit card data, app downloads, and MAUs for BetterHelp suggest that the overall trends are not different from what the management indicated in its Q3 earnings call, the analyst told investors in a research note.

According to Insider Monkey’s data, 27 hedge funds were long Teladoc Health, Inc. (NYSE:TDOC) at the end of Q3 2022, compared to 32 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the biggest position holder in the company, with 20.85 million shares worth $528.75 million. 

Greenhaven Road Capital made the following comment about Teladoc Health, Inc. (NYSE:TDOC) in its Q3 2022 investor letter:

“At the end of last year and the beginning of this year, I sold two of our highest multiple holdings and invested in Teladoc Health, Inc. (NYSE:TDOC), believing that swapping out of the highest multiple holdings into a lower multiple holding would provide protection in the event of multiple compression. However, the reality is that the multiple compression on currently loss-making (unprofitable) companies has been severe regardless of starting multiple, and TDOC’s lower relative starting point afforded us far less protection than I expected. We are no longer shareholders today but continue to follow the business and may return someday given its market size, product portfolio, and valuation.”

1. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 38 

Roblox Corporation (NYSE:RBLX) is a California-based company that allows developers and creators to build, publish, and offer digital 3D experiences, including Roblox Client, Roblox Education, and Roblox Cloud. Roblox Corporation (NYSE:RBLX) is one of the stocks that Jim Cramer has been bearish on. He spoke about the company in a December 20 segment of Mad Money: 

“Roblox is too expensive … Not making money, too.”

On December 22, Roblox Corporation (NYSE:RBLX) shares dropped nearly 8%, approaching its 52-week low, as investors continued to sell-off the stock after it posted weaker-than-anticipated November bookings earlier this month. Over the past month, Roblox Corporation (NYSE:RBLX) shares have plummeted more than 16% and have sunk more than 73% year-to-date.

Wolfe Research analyst Gal Munda on December 21 downgraded Roblox Corporation (NYSE:RBLX) to Underperform from Peer Perform with a $24 price target. The company’s “disappointing” November metrics potentially provide concern in company execution, the analyst wrote in a research note.

According to Insider Monkey’s data, Roblox Corporation (NYSE:RBLX) was part of 38 hedge fund portfolios at the end of Q3 2022, and Jim Simons’ Renaissance Technologies is the biggest position holder in the company, with 10.6 million shares worth $380.6 million.

Tao Value mentioned Roblox Corporation (NYSE:RBLX) in its Q4 2021 investor letter. Here is what the firm said:

“Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On the business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in the virtual world. Apple in its iOS 14.5 rolled out an impactful change for the digital advertising landscape by requiring all apps to ask users to “opt in”.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 12 Most Advanced Countries in Robotics and 25 Most Visited Countries in the World.