In this article, we will take a look at the 5 stocks that Jim Cramer recommends selling. To see more such companies, go directly to Jim Cramer Recommends Selling These 12 Stocks.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 37
California-based EV company Rivian Automotive, Inc. (NASDAQ:RIVN) shares have gained about 34% year to date. Jim Cramer recommended investors to sell Rivian Automotive, Inc. (NASDAQ:RIVN) about two months ago during a program on CNBC.
A total of 37 hedge funds in Insider Monkey’s database of hedge funds had stakes in Rivian Automotive, Inc. (NASDAQ:RIVN) as of the end of the second quarter of 2023. The biggest stakeholder of Rivian Automotive, Inc. (NASDAQ:RIVN) was Daniel Sundheim’s D1 Capital Partners which has a $231 million stake in the company.
Baron Fifth Avenue Growth Fund made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its second quarter 2023 investor letter:
“During the second quarter, we also added to our position in EV manufacturer Rivian Automotive, Inc. (NASDAQ:RIVN). After a complex period since the company’s IPO, in which Rivian tried to ramp multiple vehicles simultaneously while struggling to overcome unprecedented supply-chain bottlenecks, the company seems to have turned the corner. Production is now starting to scale up, which should help the company improve its plant utilization and subsequently help gross margins. The company is making notable progress in cost improvements by renegotiating with its suppliers, utilizing its larger scale to get better pricing, as well as, incorporating various technological advancements that would improve its cost structure while also improving the vehicles’ performance (for example it’s Enduro drive unit which is progressing ahead of plan).”
4. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 53
Jim Cramer in a program answered a question about Verizon Communications Inc. (NYSE:VZ) and said that we don’t buy stocks just because of their dividends if the stock prices are not going up. He said that Verizon Communications Inc. (NYSE:VZ)’s stock is “going nowhere.”
As of the end of the second quarter of 2023, 53 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Verizon Communications Inc. (NYSE:VZ). The biggest stakeholder of Verizon Communications Inc. (NYSE:VZ) was Ric Dillon’s Diamond Hill Capital which owns a $250 million stake in the company.
The London Company Large Cap Strategy made the following comment about Verizon Communications Inc. (NYSE:VZ) in its second quarter 2023 investor letter:
“Exited: Verizon Communications Inc. (NYSE:VZ) Sale reflects heightened competitive activity from both AT&T and T-Mobile. While VZ has the highest quality network, we are concerned that competitors’ focus on market share gains could continue to negatively affect VZ’s business.”
3. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 56
Jim Cramer recently gave bearish comments about AT&T Inc. (NYSE:T) and called the stock “horrendous.” On the other hand, Citi recently upgraded AT&T to Buy. Citi said that several factors, including competition and industry structure, have affected the telecom industry. Legendary hedge fund manager Ray Dalio’s fund opened a new position in AT&T Inc. (NYSE:T) in the second quarter as it bought 1.98 million shares of the company.
A total of 56 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in AT&T Inc. (NYSE:T). The biggest stakeholder of AT&T Inc. (NYSE:T) during this period was D E Shaw with a $226 million stake in the company.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88
Jim Cramer’s Trust sold its position in Johnson & Johnson (NYSE:JNJ) recently. In a program on CNBC, Cramer explained in detail the reasons behind this decision. He said that Johnson & Johnson (NYSE:JNJ) was not sold due to problems in fundamentals of this company. He praised Johnson & Johnson (NYSE:JNJ)’s business but said the stake was sold due to consistent legal troubles. Cramer said that he had initially believed Johnson & Johnson (NYSE:JNJ) had acted in good faith and was not aware of the harmful ingredients in its baby talc powder. But amid unending lawsuits and lost legal battles Cramer has decided to dump Johnson & Johnson (NYSE:JNJ).
1. Activision Blizzard, Inc. (NASDAQ:ATVI)
Number of Hedge Fund Holders: 134
Back in July Jim Cramer had advised investors to sell Activision Blizzard, Inc. (NASDAQ:ATVI) and instead buy Take-Two Interactive Software, Inc. (NASDAQ:TTWO) which he thought was “incredibly cheap.” Recently, CNBC’s David Faber said, citing people following the matter, said that Microsoft Corporation (NASDAQ:MSFT) may be able to complete its purchase of Activision Blizzard, Inc. (NASDAQ:ATVI) in the first week of October as the company is expected to get regulatory approvals soon.
As of the end of the second quarter of 2023, 134 hedge funds tracked by Insider Monkey had stakes in Activision Blizzard, Inc. (NASDAQ:ATVI).
Here is what Aristotle Value Equity has to say about Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q2 2023 investor letter:
“Headquartered in Santa Monica, California, Activision Blizzard is one of the largest video game companies in the world. The company develops and sells games that are played by nearly 400 million monthly active users across 190 countries. Activision Blizzard is a product of the 2008 merger of Activision, the console game maker, and Blizzard Entertainment, the PC game maker. In 2015, Activision Blizzard also acquired King Digital Entertainment, the developer of mobile games. The combined entities own some of the most well‐known franchises globally, including World of Warcraft, Call of Duty and Candy Crush. Together these three franchises account for roughly 80% of Activision Blizzard’s sales.
The company has successfully navigated multiple console cycles and, in recent years, has shifted its revenue mix away from physical sales toward more recurring sources. In 2013, roughly 70% of sales came from physical games, while today ~75% of sales come from subscriptions, in‐game content and advertising across mobile devices, consoles and PCs.
In early 2022, Microsoft—a current Value Equity holding—announced its intention to acquire Activision Blizzard. Our subsequent discussions with Sony, also a current holding, furthered our understanding that access to Activision Blizzard’s gaming franchises is critical for PlayStation, Xbox and the broader videogame industry. We do not attempt to predict regulatory approval of the transaction and instead view the company as an optimal investment regardless of whether the acquisition takes place…” (Click here to see the full text)
You can also take a peek at 15 Most Profitable Cutting Edge Technologies That Will Make You Rich and Dow 30 Stocks List: Ranked By Hedge Fund Bullishness Index.
