We recently published an article titled Was Jim Cramer Right About These 12 Stocks? In this article, we are going to take a look at where Blackstone Inc. (NYSE:BX) stands against the other stocks.
Back then, Cramer was focused on the impact of future rate cuts and how different stocks would react. He argued that the market had become simple:
“Stocks that benefit from rate cuts get bought. Stocks that don’t benefit get sold.”
At that time, Cramer pointed to McDonald’s as an example of a rate-cut winner, despite the company having weak earnings at the time, saying:
“This market doesn’t care that it’s doing badly. It just treats the Golden Arches as a rate-cut winner.”
Meanwhile, he appeared rather bearish around big tech at the time. He warned against buying the “Magnificent 7”, saying that while they had thrived despite rate hikes, they wouldn’t necessarily benefit as rates came down. Here’s how he put it back then:
“For years now, the market has been rallying on companies that don’t need to borrow money, that don’t need rate cuts. But the flip side is that they won’t really benefit as rates come down.”
Tech stocks were under pressure at that time, and Cramer saw no short-term relief:
“For tech, the watchword is three words my staff loves to say: get out now.”
Cramer expressed some interesting opinions in that particular show. Let’s see how each prediction unfolded 7 months later.
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money on July 30, 2024. We then calculated their performance from July 30th, 2024, market close to February 14th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q3 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
Note: This article covers Jim Cramer’s commentary from July 30, 2024, and does not account for any changes in his opinions regarding the stocks mentioned. Therefore, the commentary should not be mistaken for his latest opinions on any of the stocks that are mentioned.
Why are we interested in the stocks that hedge funds pile into? 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).
A close-up of a portfolio manager’s face with a laptop nearby, highlighting their expertise in investment management.
Blackstone Inc. (NYSE:BX)
Number of Hedge Fund Investors: 65
Cramer was bullish on Blackstone Inc. (NYSE:BX) for the long term, despite skepticism around its earnings. A caller asked him whether the company is a winner, and he replied with:
“You absolutely do [have a winner], and I want to own this one for the long term.”
Then as the caller expressed his concerns on the company’s weak earnings report at the time, Cramer dismissed them saying:
“Everyone said it was a bad quarter. That was a mistake. It was a good stock.”
Blackstone hasn’t been a bad pick to be fair. It’s up by 16.6% since the show aired, and Cramer remains bullish on it. In a later show, he said the following:
“What about Blackstone, the enormous private equity firm that invests in everything from real estate to data centers? The knee-jerk Fed worshippers hear the name Blackstone, they think investments, and to them, any company that’s all about investments is a company that lives and dies by the Fed. […] Never mind that Blackstone reported one terrific quarter, one that eventually sent the stock up more than 6%, new all-time high.
In the end, Blackstone is less levered to the Fed and more levered to the brains of its brilliant executives. When you buy shares in Blackstone, which I wanted to do so badly for my Charitable Trust, but didn’t get a chance to, you’re not buying the musings of the Fed chief during a strange, stilted Q&A session with reporters. You’re buying the life’s work of some of the smartest people in the business world. If you remember that, you will indeed profit from it.”
Overall BX ranks 8th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of BX 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 BX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
