We recently compiled a list of the Jim Cramer Talked About These 8 Stocks. In this article, we are going to take a look at where Core Scientific, Inc. (NASDAQ:CORZ) stands against the other stocks Jim Cramer talked about.
Jim Cramer, host of Mad Money, recently shared some investment wisdom drawn from his four decades of experience. One of the key lessons he emphasized during the show was the importance of discipline in investing. Cramer was firm on this principle, saying that no matter how much someone may love a stock or be captivated by its story, if the rules dictate that it’s time to sell, then it’s time to sell. He reminded his audience that discipline is more important than sheer conviction when it comes to managing investments.
“We’re gonna start with the first one, which is bulls make money. Bears make money. Pigs, well, they get slaughtered. Look, I say this all the time… because so often in my business, I’ve seen moments where stocks went up and up and up so much that people were intoxicated with their gains… However, it’s precisely at that point of intoxication that you need to remind yourself that you don’t want to act like a pig.”
READ ALSO Jim Cramer’s Latest Lightning Round: 8 Stocks in Focus and Jim Cramer Discussed These 11 Restaurants and Retail Stocks
Cramer also stressed that one of the toughest aspects of investing is simply enduring the ups and downs of the market.
“You know that’s the hardest part of investing. It’s holding on through the difficult periods, taking short-term pains so you can have long-term gains, which is what’s happened in the stock market for a century.”
The next rule Cramer shared revolves around the fear of paying taxes on stock market gains. He pointed out that many investors develop a near-obsessive aversion to paying taxes and often avoid taking profits because they don’t want to incur tax liabilities. However, Cramer argued that it’s perfectly okay to pay taxes if it means securing gains.
Lastly, Cramer advised against buying or selling a stock all at once. He recommended spreading purchases over time in stages, as this approach accounts for the potential fallibility of judgment and helps secure the best price.
“… My next commandment and this is a really important one. Never buy all at once. I can’t stress it enough. Do not, under any circumstances, buy your whole position at once… and you should never sell all at once. Instead, I need you to stage your buys, work your orders, try to get the best price over time.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episodes of Mad Money. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
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 portfolio manager pointing to a digital graph of emerging market assets.
Core Scientific, Inc. (NASDAQ:CORZ)
Number of Hedge Fund Holders: 58
Cramer cautioned care with buying Core Scientific, Inc. (NASDAQ:CORZ) as he explained that it is “losing money”.
“Yeah, I’ll tell you… if you think that today was a seminal market, in other words, that the Fed did something that is gonna make people very nervous, this stock will go down for maybe a couple [of] days. It is very intriguing, but remember, it’s losing money. Losing money stocks will not do well in this newer environment. So let’s be careful before we buy more of that stock.”
Core Scientific (NASDAQ:CORZ) is a North American company that provides digital asset mining services. It also provides electrical power and infrastructure services necessary to support ongoing operations. The company faced significant financial challenges after going public through a Special Purpose Acquisition Company (SPAC) in 2022 and was hit hard by a sharp decline in Bitcoin prices. This led to it entering bankruptcy protection in early 2024.
However, following its emergence from bankruptcy, the company has since adapted to changing market conditions. As companies increasingly focus on AI computation rather than solely on Bitcoin mining, the company’s business model, which emphasizes building application-specific infrastructure for data centers, has positioned it well for this shift.
CEO and President Adam Sullivan noted in an interview with Yahoo Finance that the company’s success in the Bitcoin mining sector for the past three years can be attributed to its unique approach of bringing in professionals from traditional data centers to manage operations, setting it apart from competitors. Earlier in the year, Core Scientific (NASDAQ:CORZ) made a strategic move by signing a deal with CoreWeave, a cloud computing firm, to help expand its artificial intelligence capabilities. This partnership is expected to generate $8.6 billion in revenue over the next 12 years and will involve the development of 500 megawatts of infrastructure.
Overall CORZ ranks 5th on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of CORZ 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 CORZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.