In this piece, we will look at the 23 stocks that Jim Cramer just talked about.
With the Federal Reserve’s December meeting over, Wall Street has now shifted into a new paradigm. While the central bank did cut interest rates by 25 basis points in a widely anticipated move, the bank also signaled that 2025 might be accompanied by fewer interest rate cuts than many might have anticipated. In fact, not only are markets convinced that the Fed will cut less in 2025, but some even believe that the interest rates might be hiked especially since the central bank’s median 2025 inflation outlook is 2.5% which is higher compared to the earlier 2.1%.
While the Fed’s announcements and the press conference sent the flagship S&P index by 3.2%, Jim Cramer explained how the stock market as a whole isn’t doing that well. On the episode of Squawk On The Street the day of the interest cut, he stated “Look at the material stocks, look at anything related to industrial export. Look at the housing stocks. David, there are cohorts that are indeed rolling over. It isn’t like everything is just super strong and everything is quantum computing and Rocket Lab!”
Cramer added that while some believe that sections of the economy such as retail are strong, there might be a need to look deeper. “Look there’s this growing consensus not represented necessarily in these Fed fund futures but that just says why are they doing this? And I come back and say why are they doing this,” said Cramer, adding “So I think that the talking heads, and boy are there ever a lot of talking heads, have decided that look that if you look at what we’re seeing in some retailers, things are strong. By the way in retail, it’s not strong either if you count colds.”
Going against the trend, he stressed the need to look into the data to find the right stocks. According to him, “I don’t know where these people get that things are strong, they look at the aggregate numbers, I look at the individual companies, I am trying to find companies that are strong.” Cramer was also perplexed by the Atlanta Fed’s Q4 3.2% GDP growth estimates. He shared that he’s “trying to find why. I’m trying to find where that is. You know David that travel’s very strong yeah. Leisure’s very strong. Dining out’s very strong. These are strong and by the way, they’re very obvious, they look obvious to the Atlanta Fed. I don’t know what kind of weighting they have but wow.”
The American economy wasn’t the only economy on Cramer’s mind. While he might be having a hard time believing the GDP estimates, there isn’t a doubt in his mind that the US is the best place to invest. Cramer shared that he’s “trying to find countries, maybe Argentina making a comeback, but it’s very difficult to find a country that I would invest in,” but it’s very difficult to “find a country that isn’t upset in turmoil or something.”
Speaking of other countries, Cramer believes that China “is behind so much of what’s going wrong. But they are never, other than [BY] Peter Navarro, called out.” On how the “media and other coverage says that China is in a depression,” Cramer has “to believe it because I don’t believe a single number they send. We used to be able to look at their electric power. . . . .how about when they used to do employment of youth.”
One economic sector that he’s worried about is the automobile industry. Cramer doesn’t “understand why the problems with autos are not so visible among the cognoscenti,” something he believes is very important since autos “is a huge industry. Employs a lot of people. And the layoffs and the ramifications of what could happen here and other mergers.” China is “getting away with murder, they really are, they’re getting away with wiping out industries all over the world,” Cramer said, adding that “there’s only one guy who actually stands up them, and even he was saying that he has a good relationship with Xi. And that is President-elect Trump.”
However, on an optimistic note, Cramer believes that the “Mag 7 seems almost immune even to China. Which they never really got into.”
Our Methodology
To make our list of the latest stocks on Jim Cramer’s mind, we made a list of the stocks he talked about during a fresh episode of CNBC’s Squawk In The Morning.
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).
23. Newell Brands Inc. (NASDAQ:NWL)
Number of Hedge Fund Holders In Q3 2024: 28
Newell Brands Inc. (NASDAQ:NWL) is a diversified retailer that sells a wide variety of products such as cleaning products, kitchen appliances, and outdoor products. Due to its industry, the firm is reliant on high volumes, consumer spending, and margins to drive its hypothesis. Newell Brands Inc. (NASDAQ:NWL)’s narrative is also driven by the firm’s turnaround strategy. The new strategy started taking root last year, and it seeks to consolidate brand management, create supply chain efficiencies, and streamline back-office operations. The importance of Newell Brands Inc. (NASDAQ:NWL)’s turnaround was clear in October when the stock jumped by 25% after CEO Chris Peterson shared that the “transformation is well underway.” Cramer also believes that Newell Brands Inc. (NASDAQ:NWL) stands out from the pack because of its product lineup. Product differentiation can become a source of brand loyalty for mega-retailers, and according to Cramer:
“And if we can put up the chart of NWL, now there is a comeback. And it’s working, and you don’t see there stuff at Ollie’s and that’s how you know to buy, to buy NWL.”
22. YETI Holdings, Inc. (NYSE:YETI)
Number of Hedge Fund Holders In Q3 2024: 31
YETI Holdings, Inc. (NYSE:YETI) is another retailer. The firm primarily sells outdoor products. The leisure-focused nature of YETI Holdings, Inc. (NYSE:YETI)’s products coupled with the fact that they can easily be replicated introduces company-specific factors in its hypothesis. These include rivals able to easily compete with it, including Chinese retailers that enjoy a vast cost advantage over their American peers. Therefore, YETI Holdings, Inc. (NYSE:YETI) is heavily reliant on margins and volumes to deliver bottom-line earnings. Cramer also commented on product diversification being key to the firm’s fortune as he stated:
“Yeti’s stock has been good because they keep developing new products. They’re one step ahead of Ollie’s.”
21. Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI)
Number of Hedge Fund Holders In Q3 2024: 32
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) was the third retailer that Cramer talked about during the show. The firm sells health aids, home products, toys, electronics, and others. As was the case with the other two retailers he discussed during his show, product differentiation was a key point behind his optimism for Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI). He added that the retailer’s “roadmap” was among the “clearest” among its peers. The roadmap Cramer is talking about is Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI)’s multi-year expansion plan to increase its store and distribution footprint. In 2025, it expects to have a minimum of 56 new stores with 10% or higher unit growth. According to Cramer:
“Well I’ve been saying, I pushed Ollie’s really hard last week. Cause Ollie’s the biggest roadmap of all of these close out stores. I like TJX, that’s the king. But David, if you went with me to my Ollie’s, of course you’d have to be a sergeant, and I’d have to enlist you in the army, but Ollie’s you never know what you’re going to find there. Ever.”
20. Best Buy Co., Inc. (NYSE:BBY)
Number of Hedge Fund Holders In Q3 2024: 37
Best Buy Co., Inc. (NYSE:BBY) is a technology and appliance retailer that sells smartphones, computers, kitchen appliances, and other associated products. The retailer is dependent quite a bit on consumer spending strength as its product catalog is pricier than other retailers. Lower consumer spending has driven Best Buy Co., Inc. (NYSE:BBY)’s narrative throughout 2024 as the firm has turned to margin-unfriendly promotional pricing and cost efficiencies to drive bottom-line profit. This strategy yielded results in August when the stock soared by 15% when it upgraded its fiscal year EPS guidance ranging between $6.10 and $6.35 from an earlier $5.75 to $6.20. However, these are simply stop-gap measures as Best Buy Co., Inc. (NYSE:BBY) fell by 9% in November after its US comparable sales shrank by 2.8% for a hefty miss of analyst estimates of 0.28%. Here’s what Cramer said about the retailer:
“Street’s turning positive on Best Buy which has been a decent stock for me but uh people are talking about Evercore’s got a good rationale, holiday survey is looking good, shopping indicators are positive. Now this is a company that, uh, when they reported their quarter, did not give you the kind of guidance that I would have wanted, and the stock came all the way back down. It went up back to a hundred. But if the really optimistic move says the prices are similar to Amazon, maybe there’s a chance. I’m going to talk about it tomorrow in my investing club meeting, and Carl I’m basically saying listen the AI PC did not work out. It does need [inaudible] slower, appliances are not selling as well. But this is another example where you would read they’re and how they’re doing, and [LOOKING] forward . . the headwinds you would say look, they need to cut to get to, there’s homes to be built and there’s stuff to be, um homes to be remodeled and that’s really how they make the money. So this is two positive pieces on BestBuy, surprised that we can get two.
“I like Cory Barrett very much but we did get let down by the AI PC which is proving so far to be just a plain out disappointment.”
19. Republic Services, Inc. (NYSE:RSG)
Number of Hedge Fund Holders In Q3 2024: 45
Republic Services, Inc. (NYSE:RSG) is one of the biggest waste management companies in America. The firm not only benefits from its industry position but also from the fact that since it provides essential services, it can hike prices and still sustain the demand for its products and services. Republic Services, Inc. (NYSE:RSG)’s ability to withstand macroeconomic headwinds is also evident in its quarterly results in 2024. In the second quarter, it grew revenue and operating income by 9% and 13%. Republic Services, Inc. (NYSE:RSG) followed up in the third quarter by posting 6.5% revenue growth. Cramer likes Republic Services, Inc. (NYSE:RSG) as he shared:
“Okay Republic Services I’ve got a company. I like the waste companies. Waste management has been a complete winner. Republic Services is doing very well. These companies tend to be interested, they tend to be more involved with say the building of homes. That’s where the real waste is.”
18. Jabil Inc. (NYSE:JBL)
Number of Hedge Fund Holders In Q3 2024: 45
Jabil Inc. (NYSE:JBL) is a contract manufacturing firm primarily involved in manufacturing computer hardware products such as printed circuit boards (PCBs). Its business model makes the firm one of the earliest to experience any headwinds or tailwinds in the information technology industry. Jabil Inc. (NYSE:JBL)’s shares have gained a modest 9% in 2024 as the non-AI enterprise computing and broader consumer electronic industries continue to feel the pinch from lower consumer spending. The stock fell by 16% in March after Jabil Inc. (NYSE:JBL) cut full-year revenue and earnings per share guidance to $28.5 billion and $8.4 from an earlier $31 billion and $9. Conversely, the stock jumped by 11% in October after fiscal Q1 revenue of $7 billion beat analyst estimates of $6.6 billion. Here’s what Cramer said:
“Thank heavens. Now there’s one, Jabil represents building out of technology and you have Micron which goes up everyday which is setting up for failure unfortunately I don’t like that’s reporting tonight. That’s high bandwidth. Because it does have a great high bandwidth AI business.
“See now here’s the deal, other people see the stock and you’re a humanitarian. But that [THE STOCK] is signalling all systems go for a lot of tech companies. That’s the buildout company.”
17. Cencora (NYSE:COR)
Number of Hedge Fund Holders In Q3 2024: 45
Cencora (NYSE:COR) is one of the biggest pharmacy distributors in America. Recent events surrounding the pharma and healthcare benefits management industry have placed its shares on the backfoot. Cencora (NYSE:COR)’s stock up 6% over the past month as investors reevaluate consumer perceptions of the benefits industry. The sentiment surrounding its sector has not been helped by President-elect Trump’s blunt statements of ‘destroying’ the healthcare middleman. On a firm-specific level, Cencora (NYSE:COR) has benefited from its portfolio of specialty drugs that help treat diseases like cancer. These drugs are pricier than other medications, and they enable pharmacies to post robust margins. Cramer believes that taking on giants like Cencora (NYSE:COR) will be quite hard as they’ve withstood similar attempts in the future. According to him:
“Cencora. It used to be a, had a different name. You cannot attack Cencora. They are Teflon. Cencora always wins.”
16. GE HealthCare Technologies Inc. (NASDAQ:GEHC)
Number of Hedge Fund Holders In Q3 2024: 50
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is an American healthcare products company that sells products such as diagnostic equipment and pharmaceutical agents. Its shares are up 1.61% year-to-date, which reflects the slowdown in the broader healthcare industry. The slowdown in China has hit GE HealthCare Technologies Inc. (NASDAQ:GEHC) hard, with the firm’s China revenue dropping by 17% in the nine months ending in September. The firm’s China headwinds include an ongoing anti-corruption drive in healthcare and the trickle-down effects of China’s economy-boosting stimulus. China was also on Cramer’s mind as he discussed GE HealthCare Technologies Inc. (NASDAQ:GEHC):
“GE Healthcare. GEHC. Which has just been crushed by the fact that they don’t have the China orders. Now I think that they’re going to annualize [inaudible] so it won’t be so bad.”
15. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders In Q3 2024: 52
The Boeing Company (NYSE:BA) is one of two major civilian aircraft manufacturers in the world. While this fact alone provides it with a wide competitive moat, 2023 and 2024 have been nothing but full of troubles for the firm. This year The Boeing Company (NYSE:BA) has struggled with an FAA-imposed suspension of its aircraft production expansion and a production halt due to labor strikes. These headwinds have meant that The Boeing Company (NYSE:BA)’s shares have lost 29.6% year-to-date. However, since mid-November, the shares have gained 28% amidst labor negotiations and 13 jet deliveries in November. Aircraft production is key for The Boeing Company (NYSE:BA) according to Cramer:
“I always think that a plane maker that’s making planes is better than one that’s not making planes.
“And remember they did the great secondary, everyone made money on that.”
14. McKesson Corporation (NYSE:MCK)
Number of Hedge Fund Holders In Q3 2024: 57
McKesson Corporation (NYSE:MCK) is an American pharmacy and healthcare products distributor. Like its peers in the pharmacy and benefits management industry, the tail-end of 2024 has shifted the narrative for the firm. McKesson Corporation (NYSE:MCK)’s stock is down 6.3% over the last month as investors ponder over legislative actions against the benefits management and pharmaceutical industries. The dip follows an already erratic year for McKesson Corporation (NYSE:MCK)’s stock. These include a 12% dip in August when the firm’s pharma revenue of $71.7 billion missed analyst estimates of $74.1 billion. The shares soared by 16% in November after McKesson Corporation (NYSE:MCK) raised full-year profit guidance to $32.40 to $33 per share from an earlier $31.75 and $32.55 per share. Cramer focused on the potential actions against the firm:
“Can we just say that the middlemen have been under fire for decades. And they are always, they always, McKesson is always standing. McKesson has just defied everyone. Right. They defy everybody. No one can touch McKesson.”
13. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders In Q3 2024: 58
Lowe’s Companies, Inc. (NYSE:LOW) is a major American home improvement retailer. As high interest rates have depressed the home building industry, the firm’s shares have also struggled in 2024. They are up by a modest 11.8% year-to-date, and Lowe’s Companies, Inc. (NYSE:LOW) expects headwinds to sustain for the rest of the year. As of mid-December, the firm expects 2024 same-store sales to drop by 3% to 3.5%, and ironically, this is an improvement over the earlier estimates of a 3.5% to 4% drop. Lowe’s Companies, Inc. (NYSE:LOW) reduced its same-store sales drop estimates in November after Hurricanes Milton and Helene spurred demand for home improvement products. Here’s what Cramer said:
“When you have General Mills having to get more promotional in order to be able to get its sales up, what does that say? It says that they’re promotions are all over the place and I happen to think that I had Lowe’s last week, up Marvin Ellison, Lowe’s a big chain. They’re talking about headwinds, headwinds, headwinds!”
12. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders In Q3 2024: 63
CVS Health Corporation (NYSE:CVS) is the healthcare benefits manager facing significant stock price storms in December. Over the past month, the firm’s shares have lost 21.5%. CVS Health Corporation (NYSE:CVS)’s share price performance is driven by growing government and public sentiment against benefits providers as well as President-elect Trump’s intent to take on the healthcare middlemen. The shifting winds have come amidst a turnaround effort through which CVS Health Corporation (NYSE:CVS) is purportedly looking to spin-off businesses such as its Medicare Advantage division. To boot, the Justice Department has also accused the firm of filing illegal opioid prescriptions, and similar accusations in the past have cost CVS Health Corporation (NYSE:CVS) as much as $5 billion in resolution. According to Cramer:
“CVS is a real company. And the stock broke down, I saw someone on Frank Holland’s show this morning talk about a potential bottoming in some of these. Look, the President-elect does not say it once. He says it like ten times. That he wants to wipe out middleman. I mean it’s a theme.”
11. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders In Q3 2024: 69
Chipotle Mexican Grill, Inc. (NYSE:CMG) is a well-known fast food company that sells Mexican cuisine. The firm has spent 2024 executing a growth strategy that aims to add at least 8% a year to its store count. In 2025, Chipotle Mexican Grill, Inc. (NYSE:CMG) expects to open anywhere between 315 to 345 restaurants and focus on digital sales for margin-friendly revenue. It has also focused on price increases in 2024 and raised prices by roughly 2% to battle food inflation. The price hike has hurt Chipotle Mexican Grill, Inc. (NYSE:CMG) as its Q3 comparable sales grew by 6% and missed estimates by 6.3% Cramer gushed about the firm’s former CEO Brian Niccol who left his role in August:
“Of course, they had that giant split. But if you take a look at about when Niccol came in, uh and we should look at that, a ten year chart on Chipotle, you’ll see that Chipotle was in this bad shape.
“Chipotle was almost in as bad shape as Starbucks. And Brian turned that around very very quickly. Remember he came from, . . .Yum!, and I remember asking him, I said something like the Yum! burrito has like a 147 ingredients and yours has 80. And he says, well, what does it matter? I’m at Chipotle now. And his campaigns at Yum! were brilliant. He moves over to Chipotle, first thing he does is tackle the health and safety issues.”
10. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders In Q3 2024: 76
Starbucks Corporation (NASDAQ:SBUX) is the largest coffee chain in the world. Its stock is down 5.2% year-to-date, and the stock might have been even lower if former Chipotle CEO Brian Niccol, who is widely credited for a turnaround at the fast food retailer, did not join Starbucks Corporation (NASDAQ:SBUX) in August. Niccol’s joining sent the stock soaring by 24.5% after it had sunk by 16% in May following a 12% same-store sales decline in Q1. Niccol battled with disgruntled workers after taking over, and Cramer commented on the conflict:
“The honeymoon is so over. People talking about weakness in India too. I do feel that now it’s going to be a stock when it was at $98, the expectations were too high. I feel that it can continue to shave lower, it’s a stock I own for the club when we talk about tomorrow at our club meeting. But it is, it had that big jump from the seventies, to, uh, really to a hundred and I think it has to give up some of that David because it frankly was just up on the strength of the man and not necessarily the fundamentals. But I still trust him to come up with a plan.
“But I do think one person can make a big difference. But the, it’s not a one quarter fix.
“Look I think that uh that there was a bonus issue. I mean look what, I think the unions, I mean haven’t belonged to a union that shut, that ruined a company. I’ve always been hesitant to say, look, you know give him a little room, give the guy a little room before you go all after him. He could make it so that everybody ends up doing well. There has to be some sacrifice when your company is doing as poorly. But if it’s that we’re not getting the big share, I think that they’re recognizing that the pie is shrinking!”
9. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders In Q3 2024: 76
The Walt Disney Company (NYSE:DIS) is a multimedia and entertainment giant and a household name. The shifting winds in the media industry created by the rise of streaming services have created trouble for the firm in 2024. By mid-November, The Walt Disney Company (NYSE:DIS)’s stock was up by a modest 13% year-to-date as it battled an 8% revenue and 22% operating income drop in Q1. However, since mid-November’s Q3 report, the shares have gained 8.42%. During Q3, The Walt Disney Company (NYSE:DIS)’s streaming operating profit sat at $322 million and an overall profit of $47 million. The overall profit was the first in history, and Cramer thinks a turnaround is in sight:
“You know that I have turned positive on Disney. Hugh Johnson, CFO is helping too. Well Morgan Stanley, I think they agree with me. Now they take a, they really have a top pick situation, and they ask Spotify, which by the way they raised the price target, Spotify is a great subscription model. But they did swap it for Disney, David, substantial streaming profits coming, password crackdowns, and best of all, they are now part of the distribution is king metaphor.
“. . . ESPN, these are no longer hurting. The commercials, the commercials are good. They’re doing well.
“And I think the parks are gonna surprise, because travel and leisure is still good. So I think this makes sense, it’s pulled back. And it’s consolidated right here. I think it’s good. I liked the call very much. I really like what Hugh Johnson’s brought there by the way.”
8. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders In Q3 2024: 89
GE Vernova Inc. (NYSE:GEV) is another General Electric spin-off. It is an industrial equipment provider that caters to the needs of power generation and storage companies. GE Vernova Inc. (NYSE:GEV)’s shares have gained 154% since the split-off earlier this year as the firm has benefited from the robust demand for clean power generation spurred by AI and the data center industry. The growing demand coupled with interest rate pressures has also made GE Vernova Inc. (NYSE:GEV) shift its attention away from costly wind power generation projects to more favorable gas and other projects. These include nuclear power, which is an industry that has captivated Wall Street amidst the ongoing data center rush. Cramer’s comments surrounding GE Vernova Inc. (NYSE:GEV) focused on nuclear plans, and particularly its CEO:
“But look, there’s a guy, Scott Strazik, he sat there. Right there. I wanted him to go nuke so badly. And he’s talking 2032, 2033! And he’s real businessperson. He is not a fly by night guy, he is not a guy whose trying to boost NASDAQ stocks. No he’s not trying to Robinhood anything, he is literally a businessperson.”
7. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders In Q3 2024: 98
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the largest pharmaceutical raw materials and lab equipment companies in the world. Due to its reliance on the healthcare industry, which exposes it to drug development and the costly lab equipment market, the stock has lost 5% to date. Thermo Fisher Scientific Inc. (NYSE:TMO)’s end markets are highly dependent on interest rates as its customers rely on easy money to fund large projects. The firm’s global presence has also generated significant headwinds from the prolonged economic slowdown in China. Thermo Fisher Scientific Inc. (NYSE:TMO)’s China sales were flat year-over-year in the nine months ending in September. Cramer commented on the slowdown and shared:
“They used to buy all these instruments from Danaher. They used to buy them from Thermo Fisher. They stopped. The orders from China for scientific equipment from Thermo and for Danaher are just incredible how poor they are. Look at that. That’s Danaher. That’s not just any company. Look at TMO, it’s such a good company. But that’s trimming these orders. Chinese orders are, because they have not done this stimulus.”
6. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders In Q3 2024: 98
Danaher Corporation (NYSE:DHR) is a biotechnology raw materials and life sciences equipment provider. Like its peer Thermo Fisher, the firm has also had to deal with the healthcare slowdown in 2024. Danaher Corporation (NYSE:DHR)’s shares have lost 3.7% year-to-date, as they were thrown in the red in October following an 11% drop in the days following its Q3 earnings. As part of the release, Danaher Corporation (NYSE:DHR) guided Q4 revenue decline in the low single-digits as it signaled to investors that the slowdown it is experiencing might not be over. Its China core revenue dropped by a “high-single-digit” percent in Q3 and was also on Cramer’s mind:
“They used to buy all these instruments from Danaher. They used to buy them from Thermo Fisher. They stopped. The orders from China for scientific equipment from Thermo and for Danaher are just incredible how poor they are. Look at that. That’s Danaher. That’s not just any company. Look at TMO, it’s such a good company. But that’s trimming these orders. Chinese orders are, because they have not done this stimulus.”
5. Micron Technology Inc. (NASDAQ:MU)
Number of Hedge Fund Holders In Q3 2024: 107
Micron Technology Inc. (NASDAQ:MU) is a semiconductor manufacturing firm that caters to the needs of the memory industry. Along with Korean firms Samsung and SK hynix, it is a major memory manufacturer. Micron Technology Inc. (NASDAQ:MU)’s industry position offers it a wide moat owing to the high capital expenditure and technical expertise required for semiconductor fabrication. Its narrative in 2024 has been driven by exposure to the AI industry, particularly through its HBM3e memory products. However, Micron Technology Inc. (NASDAQ:MU)’s stock sank by a whopping 16% in December after its fiscal first-quarter earnings. The firm’s Q2 guidance of $7.9 billion missed analyst estimates of $8.9 billion by a billion dollars. The day before Micron Technology Inc. (NASDAQ:MU)’s ill-fate earnings, Cramer, in a crystal ball moment, shared:
“. . . .and you have Micron which goes up everyday which is setting up for failure unfortunately I don’t like that’s reporting tonight.”
4. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders In Q3 2024: 121
Netflix, Inc. (NASDAQ:NFLX) is the largest video streaming company in the world whose early mover advantage has allowed it to build an enviable moat. The moat is clear through the firm’s 282.7 million user base. Netflix, Inc. (NASDAQ:NFLX)’s narrative depends on its ability to further monetize its already sizable user base and add more users under its wing. Simultaneously, its growing popularity in sports coverage has lent the stock additional tailwinds in 2024. After discussing Loop Capital’s $950 share price target hike for Netflix, Inc. (NASDAQ:NFLX) a day earlier, this time around, Morgan Stanley was on his mind. The bank’s analyst Benjamin Swinburne had increased the video streaming company’s share price target to $1,085:
“Which is why I bring you to still one more Netflix price target bump by Swinburne. Is Swinburne turning into a guy who just wants to go with the flow?”
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders In Q3 2024: 158
Apple Inc. (NASDAQ:AAPL) is the most valuable consumer electronics firm in the world and one whose valuation could touch $4 trillion soon. As it generates 51.6% of its revenue from the iPhone, the iconic smartphone lineup is baked into Apple Inc. (NASDAQ:AAPL)’s hypothesis. The stock responds to even the slightest of credible news of the smartphone either facing reduced demand or Apple Inc. (NASDAQ:AAPL) deciding to lower its manufacturing orders to contract manufacturers. The high valuation approaching a $4 trillion market cap and the iPhone’s criticality was also on Cramer’s mind as he started by discussing how Apple Inc. (NASDAQ:AAPL)’s high P/E ratio hasn’t dissuaded buyers:
“And people will not stop buying it. . . .Well David, I mean one of the things that’s happening is is there’s people who just say we’re getting away from the cellphone cycle.
“I say own it don’t trade it. . . it’s so far the biggest position in our trust. But I do think that if we can just get away from the [IPHONE] 17, or the 17 and 18, the 19, get away from that and make this much more of a service story. Now Tim Cook bridles if you say look, it’s Razor, Razor Blade. Because this is a tech company with the highest satisfaction. But I do think that if you could make it so that the service revenue is the thing and you’ve got China, without China orders [inaudible] so Apple’s no longer dependent on just China orders. And you get a higher multiple, but this multiple has to be followed up by a dynamite 2025.
“I mean I was going over my core holdings for tomorrow’s speech, and it’s still a core holding. I don’t know what to say. Would I come in and buy the stock right now? I mean I’d think I’d wait for a bit of a comeback, it’s just been, it trades like uh, Oklo. And it’s Apple. Unbelievably great company. I don’t know what to do. This is a total quandry for me. How do you tell people to buy Apple at that multiple when it doesn’t have that kind of consistency. And you have to believe that what they do have is a plan to be able to, so that they are out of the cycle business.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q3 2024: 193
NVIDIA Corporation (NASDAQ:NVDA) is Wall Street’s AI GPU darling whose products big tech can’t get enough of. Yet, its GPUs, and particularly the latest Blackwell lineup, have also created doubts in investors’ minds. Some quarters believe that as NVIDIA Corporation (NASDAQ:NVDA)’s GPUs are in high demand, tight supply, and pricey, big tech companies like Amazon will be forced to switch to either custom chips or products from Broadcom or Marvell. Cramer isn’t buying any of this as he’s sure that the broad demand for NVIDIA Corporation (NASDAQ:NVDA)’s products isn’t going anywhere:
“And I’m absolutely sure about that. Just the fact that Microsoft got their chips, immediately the wags, whoever the wags are said oh then there must be a demand problem if they got all their chips. That’s completely untrue. I do not like, Carl, as you know, an up opening. The people who bought it yesterday at $127. It will be heat-seeking missiles blasting that $133. You need a crescendo sell-off and we did not. Haven’t yet.
“Well it went on $127, $128, went to $130, then went right back to $128. David there are sellers of NVIDIA because they just decided you know what it cannot possibly be as good as they picture. And I say it’s gonna be every bit as good, and at the January 6th keynote at CES you’re going to hear things Jensen Huang that are going to make you regret why you sold at $127.
“Well the stock falls because of the performance and the performance, the big problem [IS] people don’t remember what it was like when you went from the 386 to the 486 the Pentium. There are these gaps. There are these gaps where momentarily you’re not shipping. This Blackwell turned out to be much harder to ship. That’s their current chip. This was Hopper the chips that Microsoft bought are not the current iteration.”
1. Meta Platforms, Inc (NASDAQ:META)
Number of Hedge Fund Holders In Q3 2024: 235
Meta Platforms, Inc (NASDAQ:META) is the world’s largest social media company courtesy of Facebook and its more than 3 billion users. The sizable user base also makes the firm an indispensable partner for advertisers. Meta Platforms, Inc (NASDAQ:META)’s relationship with advertisers has also placed it at the forefront of the AI industry courtesy of its Llama foundational model and vast resources to scoop up NVIDIA’s expensive GPUs. Cramer thinks that Meta Platforms, Inc (NASDAQ:META)’s AI progress will come step-by-step, and he’s more impressed by the firm’s consumer technology products:
“But they’re very powerful and I think that everyone won’t forget Meta which is just upgraded, upgraded, upgraded. Or price target boost. Said that they, that Meta AI would be the most, the most powerful. Right now it isn’t. Meta AI I think it like stops and like June 28th of 2023. But okay, the glasses, the glasses that translate? How about that? I’m giving everybody the other glasses, that’s my present to people that watch. Nobody watches in my family so doesn’t matter.
“The actual RayBans are so cool. You can take pictures and you can talk to it like and have a great time.”
META is a stock Jim Cramer recently mentioned. While we acknowledge the potential of META as an investment, our conviction lies in the belief that 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 META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
