We recently compiled a list of the Jim Cramer’s Game Plan This Week: 10 Stocks to Watch. In this article, we are going to take a look at where MongoDB, Inc. (NASDAQ:MDB) stands against the other stocks featured in Jim Cramer’s game plan for this week.
Jim Cramer, the host of Mad Money, recently discussed the current state of the market, touching on various factors including upcoming earnings reports and new inflation data. Reflecting on the November jobs report, which came in largely as expected, Cramer noted:
“After basically in line November jobs report, better than October, but with the unemployment rate still ticking up to 4.2%, I don’t think that does much to change the Federal Reserve’s rate cut calculus.”
On Friday, Cramer remarked that the market had a relatively calm session, with the Dow dipping by 123 points, the S&P gaining 0.25%, and the NASDAQ climbing 0.81%. He emphasized that nothing about Friday’s action surprised him, and he maintained his expectation for a 25-basis point rate cut later this month. Cramer added that he still anticipates the Fed will go ahead with this move despite the recent data.
READ ALSO Jim Cramer Discussed 10 Stocks That Can Do Well in December and Jim Cramer’s Lightning Round: 7 Stocks to Watch
Looking ahead, Cramer highlighted Wednesday’s upcoming release of the Consumer Price Index (CPI), which he noted could play a crucial role in the Fed’s decision-making. With the Federal Reserve meeting in just two weeks, he cautioned that there will be chatter about the Fed’s decision to cut rates.
“All of us still see high prices when we go to the supermarket, right? So we shouldn’t be surprised if the CPI comes in hot. At that point, why should the Fed really bother to cut? Be ready for that kind of chatter. Don’t worry, they’ll still cut.”
The following day, Thursday, will bring the release of the Producer Price Index (PPI), which Cramer pointed out is another important inflation measure. He again expressed concern that inflation needs to cool down in order to avoid complications. There has been ongoing speculation about whether the Fed could hesitate on rate cuts, which could derail the market’s expectations. Cramer remarked that if inflation remains elevated, the Fed might have no choice but to delay or even shelve rate cuts for next year.
“Bottom line: Look, I’m trying to get my arms around a market that takes up all sorts of crypto, lots of unprofitable companies, never too great a sign for those who want the Fed to cut repeatedly,” he said. “I want you to keep that in mind so you won’t be surprised if we get some overheated inflation numbers next week and the market gives up some of these extraordinary gains.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on December 6. 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 software engineer hosting a remote video training session on a multi-cloud database-as-a-service solution.
MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 49
Cramer stated that there is renewed enthusiasm for enterprise software companies such as MongoDB, Inc. (NASDAQ:MDB).
“The other standout should be this company called MongoDB, which is an enterprise data place play with tools that help other software developers create applications. For most of 2024, these kinds of stocks were in the doghouse, the market gravitated toward hardware, especially semiconductors, but then Salesforce reported excellent numbers this weekend, the stocks soared. While some of that’s because the quarter was truly excellent, much of it’s just a big change of sentiment toward these kinds of stocks.
These enterprise software stocks, which is what they’re called, were all doing okay during the low, but now they’re doing better than okay and the stocks are being greeted with extraordinary buying. Keep track of the enterprise software stocks.”
MongoDB (NASDAQ:MDB) offers a general-purpose database platform with solutions like MongoDB Atlas (a multi-cloud database service), MongoDB Enterprise Advanced (a commercial database for enterprises), and Community Server (a free version for developers). Management has expressed confidence in the company’s position to help customers adapt to the rapidly changing technological landscape.
The company remains a key partner for major hyperscalers globally, reflecting its integral role in supporting large-scale businesses. In November, the company announced an expanded collaboration with Microsoft, a move aimed at enhancing artificial intelligence application development, real-time data analytics, and improving deployment flexibility. This collaboration represents a significant step in the company’s efforts to provide robust solutions to its clients in the ever-growing AI sector.
Furthering its commitment to advancing AI initiatives, MongoDB (NASDAQ:MDB) revealed new additions to its MongoDB AI Applications Program (MAAP) in December. The program saw new partners such as Capgemini, Confluent, IBM, QuantumBlack, AI by McKinsey, and Unstructured join the initiative. These partnerships are expected to broaden the integration and solution options available to customers. Through MAAP, the company has already helped organizations like CentralReach to innovate with AI. The company’s AI experts continue to work closely with clients, addressing complex technical challenges.
Overall MDB ranks 5th on our list of the stocks featured in Jim Cramer’s game plan this week. While we acknowledge the potential of MDB 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 MDB 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.
