We recently compiled a list of the Jim Cramer Highlighted Buying Opportunities in 13 Stocks. In this article, we are going to take a look at where CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stands against the other stocks Jim Cramer recently talked about.
Jim Cramer, the host of Mad Money, took a moment on Wednesday to reflect on the latest market developments as earnings season progresses, sharing his thoughts on how investors can identify stocks that are unfairly punished and present solid buying opportunities.
“This market has the memory of a mayfly that creates a ton of opportunities so… I want to help you find them.”
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Cramer stressed that time and again, he has seen growth stocks severely impacted by minor bits of bad news, such as small downgrades or slight concerns about a quarter’s performance. In these cases, he noted, the punishment rarely fits the crime, if a real issue even exists.
Cramer also recently weighed in on the ongoing trade tensions with China. He urged Wall Street to start taking President Trump’s policies more seriously, pointing out that Trump had negotiated a deal that granted China a much lower tariff than Canada received. Cramer dismissed the idea that China’s response was an equal counterattack, calling such a notion “nonsense” and “idiocy.” He added:
“Now, if Wall Street took Trump seriously, they’d know that China played softball with its retaliation just like Trump played softball with that 10% tariff.”
He elaborated that much of the recent panic, which had escalated on Sunday night, shifted a bit to optimism, as people began to realize that the president had managed to negotiate a deal. Acknowledging the presence of hardliners within the White House who are keen on taking a tougher stance on China, Cramer noted that those individuals had lost the battle.
He pointed out that Trump’s objective was to broker a deal that could generate revenue for the U.S. Treasury while providing American businesses with opportunities in China. Cramer emphasized that this goal should have been clear to anyone who had been watching the Chinese stock market, as stocks that trade in China surged recently.
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money on February 5. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, 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).
Security personnel at their consoles, monitoring a global network of threats in real-time.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
Cramer pointed to how CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock recovered after its CEO apologized for an issue with the company’s software update that led to a global outage in 2024.
“Finally, cybersecurity. Now, just over six months ago, a glitch caused by CrowdStrike seemed to stall the whole world. Then the CEO George Kurtz, truly an indefatigable gem, visits 130 companies in a hundred days for a genuine apology tour and all’s forgotten and forgiven. In response, the stock quickly takes out its old high. Can you believe this?”
CrowdStrike (NASDAQ:CRWD) offers a comprehensive cybersecurity platform that provides cloud-based protection for endpoints, cloud workloads, identity, and data, along with services such as threat intelligence, AI-powered automation, and security management. It primarily generates revenue through subscriptions to its Falcon platform and cloud modules. Cramer has been a fan of the company and its CEO for some now and in January, he commented:
“I think CrowdStrike is going up big from here. I think that [the] cybersecurity business is terrific. I think that they are just now beginning to play offense after that glitch that occurred. I do think that this is the time to own CrowdStrike and to own what George Kurtz has built.”
Overall CRWD ranks 10th on our list of the stocks Jim Cramer highlighted recently. While we acknowledge the potential of CRWD 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 CRWD 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 was originally published at Insider Monkey.
