On Friday, the host of Mad Money opened the show highlighting a new AI company’s IPO. During the discussion, Cramer shared his thoughts on what seemed like an underwhelming IPO and what this indicates about data center demand, as well as additional macro factors that are pushing the stock market lower in recent weeks:
“[Talking about decreased data center demand] When you couple that with the tariffs orchestrated by the president of the United States, you got a stock market that feels like a nuclear winter. In this kind of environment, you don’t need a weatherman to know which way the wind blows. Today the wind blew the radio activity from the Coreweave deal and the auto tariffs and sent it right in your face. Can the fall be wiped off before your portfolio is totally irradiated? You know what? I think we’ll find out next week once the radiation clears. But don’t get too excited. I’m not going to give you a real upbeat thing going here even though it’s supposed to be a nice day tomorrow in the east. You’re not going to feel pretty good after I read this, I’m just trying to tell you straight stuff.”
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Cramer then pointed to the sudden turn in sentiment against AI and tech, the once market darlings, as another troubling sign:
“For weeks I’ve been telling members of the CNBC investing club that tech’s suspect. We haven’t bought anything until today and nothing at all in tech because we see that the market’s turned against artificial intelligence, robots, autonomous driving, we have eyes. It’s even turned against the chat bots and it’s like nothing’s going to come back.”
The host of Mad Money did not sugarcoat the current environment, and he believes that investors should brace for more pain ahead. Here’s his analysis:
“If you’re a bull you want people to be prepared for everything the president can throw at the worldwide system of free trade, you have to believe that there will be no one left who thinks the tariffs won’t be worse than smooth hauling. That was a horrendous set of tariffs that helped usher in the Great Depression. […] The market’s beginning to believe that the president will stop at nothing to make his points on trade, and he won’t change his mind until all our trading partners are brought to heel. I believe that. And then maybe we bounce. I think some people might say that’s too dire though. As I see it we’re getting closer to the moment where President Trump recognizes the beating that people are actually taking in the stock market, but it’ll take time to get there because stocks have run so much in the last decade. If the decline gets bad enough, he’ll do something. I bet he’ll ease up on the tariff rhetoric. We aren’t there yet though. This is a bad place to be but it is not horrendous that’s the best I can say about it.”
Looking ahead, Cramer highlighted two major catalysts that could shake-up the market. Those are President Trump’s expected announcement of a new tariff regime on Wednesday (what he self-proclaimed as “Liberation Day”) and next Friday’s important March jobs report:
“Now we don’t have a lot of earnings next week, but we do have some two gigantic events and first Wednesday. That’s what the president’s calling ‘Liberation Day’, the day when he tells us that what the new tariff regime will look like to liberate ourselves from our trading enemies or whatever, and then second Friday labor department’s non-farm payroll figures for March. These are both really, really big days. Everything else is a little tiny but we’re going to deal with it anyway. Both of those have the potential to turn this market around. One because it will be great when we are past it, and the other because people think that inflation is about to rage. Finally on Friday we get the labor department non-farm payroll. Let’s speak about this now in light of the very inflationary tariffs and tariffs are immediately inflationary. The bulls have to hope this number shows slow job growth and no wage growth.”
Lastly, Jim Cramer closed off the opening segment of the show by calling the current market a bear market and answered the burning question whether investors should get out now:
“Given this market’s mood I think that anything that deviates from that panglossian scenario will trigger not just talks of stagflation but definitive chatter about a bear market. That’s where we are, okay? People are going to start talking next week that we are in a bear market, and it’s not going to be anymore about a correction; it’s going to be the absolute bear. Which brings me to the fatal question: is it too late to get out, or should we start thinking buying amid weakness? Now I can tell you that a couple real bad days does not make a bear market. It’s a nasty run. Doesn’t seem like it’s over. So why not do this: take the other side of the trade if you have some cash on the sidelines – I’d actually put a small amount of money to work – into the abyss of Tuesday, betting that things are going to be too negative for what we see on Wednesday. Then you can put more money to work on Friday if we get knocked down by an overheated labor report. The bottom line it’s not the end of the world; it just feels that way.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 28. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer Says We’re Entering a Bear Market and Breaks Down These 10 Stocks
10. PVH Corp. (NYSE:PVH)
Number of Hedge Fund Holders: 28
Jim Cramer previewed PVH Corp. (NYSE:PVH) ahead of its earnings report on Monday. He expressed low expectations, citing ongoing weakness in the retail sector, but he’s hopeful that the company can turn it around:
“On Monday we hear from PVH that’s the apparel company behind Calvin Klein and Tommy Hillfinger, used to be very hot stock at one point. We become so used to disappointments in retail though, that our eyes will glaze over when we see how bad these numbers might be. Understand that the estimates here have been consistently cut for PVH and there’s still little hope that it will beat the numbers. All I can say is fingers are crossed.“
PVH Corp. is a global apparel company known for its iconic brands, including Calvin Klein and Tommy Hilfiger. The company designs, markets, and retails clothing and accessories across North America, Europe, and Asia. Once a retail darling, it now faces rising competition and softness in consumer spending.
Cramer recently discussed some worries about the company’s position and how it could be targeted by Trump’s tariffs. Here’s what he said 2 months ago:
“Could be whimsical, could be actual, but PVH for many years was the master licensee for . . .men’s apparel. Exclusive relationship with Macy’s, great relationship and very nice business. And perhaps, I know that the relationship ended in 2015 when Trump ran for President the first time. PVH has no other business relationship with the President since then. But that would be, kind of uh, nice way to say hey listen . . we’ll even, we’re gonna slap you on the tie. But, so just keep that in mind.”
9. RH (NYSE:RH)
Number of Hedge Fund Holders: 51
Jim Cramer discussed RH (NYSE:RH), formerly known as Restoration Hardware, in anticipation of its earnings report this Wednesday. Given the stock’s dramatic decline and ongoing market uncertainty, Cramer urged caution:
“Now there’s some corporate news adjacent to Liberation Day. RH reports on Wednesday close that’s the old restoration hardware has fallen from 457 down to 236, a sickening decline but not unlike many other retailers. I’d say wait for the balance, I’m not really in – I don’t know – it’s too hard, how about that? It’s just too hard… Bets out of Washington weigh too heavily on the market to make that kind of bet and with this tape it does feel more like a bet than an investment.”
RH is a luxury home furnishings retailer offering upscale furniture, lighting, and textiles. The company operates galleries and design centers across the U.S. and is known for its aspirational branding and high-end catalog presentation. However, macroeconomic pressures and shifting consumer preferences have weighed on performance.
Jim Cramer has been optimistic about RH (NYSE:RH) over the past months. Here’s what he said about the stock 2 months ago:
“Now see RH is an example of how they worked really hard to get out of China. They’ve done a fantastic job about it. If you sell RH I think you’re selling a company that has been moving so aggressively out of China that you’d be making a big mistake. But interestingly enough, they [Goldman] had a sell on RH, the whole way from two hundred to here. And now they’re back . . .putting the hate on again? Why doesn’t that guy just go to his beach house, see how much is RH, and realize that . . .
“That guy’s got a Hampton’s house and it’s filled with RH. That’s what you do. You fill it with RH. You don’t fill it with Wayfair, no partner’s gonna fill his place with Wayfair. They’d really get hurt. Gary Friedman has said over and over again I’m moving out of China. I’m moving out of China. So this guy, who’s hated it all the way, now they’re back putting the hate on. You know I don’t like it.”
8. Conagra Brands, Inc. (NYSE:CAG)
Number of Hedge Fund Holders: 32
Jim Cramer mentioned Conagra Brands, Inc. (NYSE:CAG) in relation to its upcoming earnings report on Thursday. He flagged concerns about the company’s outlook, pointing to its high dividend yield as a warning sign:
“Thursday’s quiet on the Washington front but it’s a good prelude to the beginning of earnings season. Conagra reports, okay, and the last time we heard from this package fruit company was a bit dispiriting. One look at that yield north of 5% tells you that something’s very awry here.”
Conagra Brands is a major player in packaged foods, with a portfolio that includes household names like Healthy Choice, Hunt’s, Orville Redenbacher’s, and Slim Jim. It serves both retail and foodservice customers but has recently struggled with inflationary pressures and changing consumer tastes.
Jim Cramer has been neutral on Conagra Brands, Inc. (NYSE:CAG) and recently, he even stated that the company should merge with another U.S.-based food player:
“You know, look, honestly, General Mills needs to merge with Conagra, okay. I’ll just put that one out.
7. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 73
A caller asked Jim Cramer about NIKE, Inc. (NYSE:NKE), and Cramer shared a candid view on the brand’s recent performance, pointing to emerging competition, and how he actually prefers one of the brand’s competitors:
“You know it’s funny, I was talking to my trainer today, Jim, and we were both saying that Nike really has lost its edge, and that ON is the way to go, ONON. And I think the stocks correctly reflecting that analysis. I know they’re trying to turn in that striking but you know the other companies aren’t standing still while they try to turn, and that’s the big difference from all the other times I’ve seen Nike stumble.”
NIKE is one of the world’s leading athletic apparel and footwear brands, known for its iconic swoosh logo and deep sports marketing footprint. While historically dominant, the company is now facing increased competition from brands like On and Hoka in the performance segment, as well as macroeconomic headwinds.
RiverPark Large Growth Fund shared the following commentary on NIKE, Inc. (NYSE:NKE) in its Q4 2024 investor letter:
“NKE shares were a top detractor in the quarter following better than expected fiscal second quarter results reported in December but worse than feared third quarter guidance. The company delivered $13.4 billion of revenue (roughly $1 billion better than expectations) and $1.9 billion of EBIT (roughly $500 million ahead of street consensus) and generated better than expected earnings of $1.03 (investors were looking for $0.78). Despite better operating metrics last quarter, the company dramatically lowered expectations for the fiscal third quarter including expectations for double-digit percentage declines in revenue. NKE’s new CEO, Elliot Hill, described several key issues negatively impacting the company’s growth trajectory including 1) a multi-year move away from a focus on sports, 2) a shift away from innovative demand creating marketing, 3) too much centralization, which has led to lack of execution capabilities in local markets, and 4) too much focus on Nike Digital, which negatively impacted the brands standing in the marketplace. Nike is, by far, the leading athletic footwear, apparel, and equipment company in the world with over $50 billion in revenue, $6.7 billion in FY2024 annual free cash flow, and $10 billion of 7 excess cash. We believe that over the long term, the global secular growth trend towards active wear will continue to aid Nike’s top-line growth driving gross and operating margin improvements and long-term mid-teens or higher annual EPS growth. In the short term, we believe that the company will work through the above headwinds and that revenue and earnings growth will reaccelerate in the next 12 months.”
6. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 80
Jim Cramer highlighted AT&T Inc. (NYSE:T), the U.S. telecom provider, as one of the best performers of the S&P 500 this year. He noted its impressive year-to-date performance and the reasons behind its recent rise in popularity and impressive performance:
“Suddenly AT&T has been making a name for itself as a safe haven in a tough market and we don’t have many of those. When investors feel like the environment’s gotten really treacherous, they like to throw their money into something deemed safe. Telecom fits the safety criteria because it’s more insulated from the cyclical nature of the economy. Things have to get pretty darn bad before you stop paying your cell phone bill, don’t they? And also, because these companies tend to pay pretty good dividends.
So, what’s changed then to allow AT&T to become a winner this year? Well for starters this is no longer the old AT&T that we think about after spending years trying to diversify away from the phone business, which was ill-fated by the way, they finally decided to stick with what they knew best: phone business. Back in September AT&T told us they’re selling the rest of their stake in Direct TV – what a disaster that was – and that comes on top of the Warner Brothers spin-off a few years ago doesn’t hurt that the whole wireless business has gotten less competitive, and that’s allowing all three of the major carriers to steadily raise prices.
But the main reason AT&T stock got its mojo back is that management held an investor day in in December and they laid out a very clear road map with healthy growth expectations. It was a breath of fresh air for investors who might have bought this stock for years for the dividend but have seen those quarterly payouts cut.
At the end of January, they put an excellent quarter, good subscription numbers, strong free cash flow growth, and management raised their previous guidance that might seem like a low bar but in a negative market like this one, I think a little consistency goes a long way. But the most recent results indicate that AT&T has really turned the corner here.
So, here’s the bottom line here AT&T’s mainly roared this year as a higher yielding flight to safety trade, but there are also some company specific positives as the company’s gone a long way to turn itself around. At the very least, the stock’s no longer a value trap, which is why it’s been working this year and why I expect it to keep working as long as people are worried about the state of the economy.”
TCW Relative Value Large Cap Fund is positive on AT&T Inc. (NYSE:T) due to its strong management, successful restructuring, improved financial outlook, and commitment to sustainability. The fund stated the following in its Q3 2024 investor letter:
“AT&T Inc. (NYSE:T), based in Dallas, TX, is a nationwide provider of voice, video, and data communications services to businesses and consumers in the wired, wireless, and broadband. At initiation, the stock had a $141 billion market capitalization and met all five valuation factors with an above market dividend yield of 5.6%. From a sustainability prism, the company completed its commitment to invest $2 billion by the end of 2023 to help bridge the digital divide. AT&T is working on enabling low-income households to access to low-cost broadband services through its Access service plan as well as reaching out to more rural communities and Tribal lands where internet access remains a challenge. It is nearly 85% the way to providing one million people in need with digital resources through AT&T Connected Learning® with the goal to be reached by the end of 2025. In 2020, the company announced that it is committed to be carbon neutral by 2035 with zero carbon emission across all operations. It is deploying Smart Climate Solutions – through efforts like its Connected Climate Initiative – that will help enable its business customers to reduce their emissions as well. The company’s goal is to help collectively reduce its emissions by one billion metric tons – a gigaton – by 2035, compared to 2018 levels. The primary catalysts are new/strong management and restructuring. John Stankey was appointed CEO in July 2020 and he is committed to refocusing the company and improving its financial performance. The company combined its WarnerMedia operation with Discovery during 1Q:22 which eliminated AT&T’s exposure to the rapidly evolving media industry and refocused its core telecommunication business thus eliminating a major drag on profitability and the company’s balance sheet by reducing long-term debt from a peak $176 billion during 2020 to $142 billion at the end of June 2024 quarter. AT&T is moving aggressively to reduce cost and sell non-core assets such as its advertising platform Xander to Microsoft† which was accomplished during 2022. The company has redesigned its network to be software driven structure reducing the capital investment cycle in its national network – resulting in a network that is flexible with unrivaled speed and reliability – thus enhancing its nationwide position. By the end of 2023, it expanded its 5G network to reach more than 302 million people in nearly 24,500 cities and towns in the U.S. The company’s mid-band 5G+ network alone grew to cover more than 210 million people. AT&T is one of the largest investors in digital infrastructure in the U.S. Over the five years ending 2023, the company invested nearly $150 billion primarily in its wireless, fiber optics, and wireline networks. The extensive restructuring and refocusing of AT&T on its core business should result in improved earnings and cash flow while at the same time reducing uncertainty for shareholders.”
5. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Number of Hedge Fund Holders: 22
A caller asked Jim Cramer about AST SpaceMobile, Inc. (NASDAQ:ASTS), and Cramer expressed concerns about the company’s financial condition:
“The biggest problem is that they’ve got a hideous balance sheet, and I don’t like hideous balance sheets. What has to happen is I think they should take on a partner. I do think that they’ve got a very interesting way to- look it’s a good telecom company partner, but what really matters to me is they’ve got to either start making money or get someone to give them some money. Right now, I think you’re too up in the air in this particular stock market.”
AST SpaceMobile is building a satellite-based cellular broadband network designed to provide connectivity directly to mobile phones, especially in remote and underserved areas. Despite an ambitious vision and strategic partnerships with global telecom giants, the company remains pre-revenue and highly capital-intensive.
Jim Cramer has never been particularly a fan of AST SpaceMobile, Inc. (NASDAQ:ASTS), based on his previous comments on the stock around the end of 2024, when he said that is a speculative stock and mentioned he doesn’t want it to make up a significant portion of an investment portfolio:
“There’s a whole bunch of stocks that all are very speculative and if people wanna speculate, I am not against it. I just don’t want it to be a large part of your portfolio. This company’s losing money hand over fist. Doesn’t mean the stock can’t go down, but it does mean that it’s not worth anything other than a spec.”
4. Celanese Corporation (NYSE:CE)
Number of Hedge Fund Holders: 35
Jim Cramer responded to a caller’s question about whether Celanese Corporation (NYSE:CE) is a long-term hold during the Lightning Round segment of Mad Money. He was notably disappointed with the company’s recent performance:
“CE is uh, they’ve struggled. They have struggled and I have to tell you I’m not happy with how they’re doing and I can’t – long-term or short-term – hide that. I’m just not happy with how they’re doing, I’m sorry.”
Celanese Corporation is a global chemical and specialty materials company that produces a broad range of industrial and consumer products, including engineered materials and acetyl chain chemicals. Despite a diversified business model, Cramer’s comments reflect concern over the company’s execution and growth outlook.
Cramer has been relatively cautious on the company for a while now. Here’s what Cramer said about Celanese Corporation (NYSE:CE) a couple of months ago:
“Look there are parts of the economy that are just very, very weak. Take a look at Celanese today. I mean Celanese has a, you need for chemicals to go up, you need to have China back online. That’s a chart of a basic building block of our industry, and the prices are falling. So please, let’s not give up with housing, the plastics, you’re seeing some things, that make it so that it’s not as clear that the Fed has lost here on inflation, at all. I know that tariffs are sticky and hard to get, but they change things, but there are things going on that are deflationary all the time.”
3. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 95
During a caller interaction, Jim Cramer discussed AppLovin Corporation (NASDAQ:APP), offering a mix of skepticism and acknowledgement of its strong financials:
“AppLovin is very controversial. Okay so let me just dispel one thing. When you have Craig Billings as the CEO of Wynn, as the head of the audit committee and also the lead director of AppLovin, then I’m going to believe the financials [inaudible]. Is the stock expensive? It did have a great fourth quarter. Should someone else come in and take and take away their gross margins? I would like to go into that business and take them away. That company’s making, I say, over-earning is the biggest problem I have with AppLovin.”
AppLovin is a mobile technology and marketing platform that enables developers to monetize and grow their apps. Known for its high-margin software business and rapid expansion, the company has recently generated discussions over the sustainability of its profits.
ClearBridge Mid Cap Strategy stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q4 2024 investor letter:
“Stock selection in IT was the greatest contributor to performance on strength in AppLovin Corporation (NASDAQ:APP) and Marvell. AppLovin is the world’s leading mobile game and app advertising platform, providing software for marketing and monetization, powered by its proprietary AI targeting engine Axon. We see opportunity for AppLovin to continue to expand and grow its share of the market for mobile app marketing at a time when mobile gaming ad spend is recovering from a higher-rate-driven trough. We also see the potential for the company to expand its addressable market to include e-commerce advertising, around which initial forays have been encouraging. With strong incremental margins and management keeping expenses controlled, the company should be able to drive significant free cash flow growth as revenue continues to scale.”
2. CoreCivic, Inc. (NYSE:CXW)
Number of Hedge Fund Holders: 30
Jim Cramer shared his view on CoreCivic, Inc. (NYSE:CXW) in response to a caller’s question, expressing optimism despite recent stock weakness:
“You know I’m surprised the stock has kind of come back down here. I think it’s a, you know, it had a huge move, and now it’s just kind of resting. I think the stock is ready to move again.”
CoreCivic is a real estate investment trust (REIT) that owns and manages correctional facilities and detention centers. The stock has been volatile amid political scrutiny and fluctuating government contracts, but Cramer believes it may have more upside ahead.
Jim Cramer highlighted CoreCivic, Inc. (NYSE:CXW) back in November as a potential winner from the Trump administration:
“The two big private prison operators, GEO Group and CoreCivic have rallied 85 and 59% respectively since the beginning of November. These tend to be winners whenever the GOP is in power, but they’re rallying particularly hard this time because Trump ran on an agenda of mass deportations. Keep in mind though, GEO Group and CoreCivic roared from the 2016 election to Trump’s inauguration day in January 2017, but then they spent most of the next four years going lower. My view, legitimate thesis here, but the gains are so extreme that I worry they’re running out of upside.”
1. Sportradar Group AG (NASDAQ:SRAD)
Number of Hedge Fund Holders: 31
Wrapping up the show, Jim Cramer weighed in on Sportradar Group AG (NASDAQ:SRAD), responding positively to a caller’s inquiry:
“I think Sportradar is a very interesting, intriguing stock. Now I- but remember, I also like Flutter, I like DraftKings, because I like the whole space and that is one very important part of the whole space.”
Sportradar is a global provider of sports data and betting services, supplying real-time analytics and integrity solutions to sportsbooks, media outlets, and sports federations. As sports betting grows worldwide, Cramer sees potential in the broader sector.
According to its Q4 2024 Earnings Call Transcript, Sportradar Group AG (NASDAQ:SRAD) delivered a strong fourth quarter and full year 2024, exceeding its already raised guidance and marking a clear inflection point for the business. Revenue for the full year reached €1.1 billion, up 26% year-over-year, while adjusted EBITDA rose 33% to €222 million. The company’s U.S. business was a major contributor, growing 58% and now accounting for nearly a quarter of total revenue. Sportradar also achieved significant margin expansion, with full-year adjusted EBITDA margins improving by over 100 basis points. In Q4 alone, revenue rose 22% to €307 million, driven by strong growth across its product portfolio, including streaming, betting engagement, and odds services. At the same time, adjusted EBITDA increased 53% to €61 million.
A major highlight of the quarter was Sportradar’s announcement of its agreement to acquire IMG ARENA’s global sports rights portfolio, which spans over 70 rights holders and 14 sports. This deal, which is expected to close in Q4 2025, is projected to be immediately accretive to revenue, EBITDA, and free cash flow. The acquisition strengthens Sportradar’s dominance in top global betting sports like tennis, soccer, and basketball, adding high-profile events such as Wimbledon, the U.S. Open, and Major League Soccer. Sportradar also continued to innovate on the tech front, using AI to expand its hyper-personalized offerings and boost in-play betting opportunities. Products like 4Sight, already live across multiple sports, are extending engagement times and opening new monetization paths. With continued operating leverage, a disciplined cost structure, and robust free cash flow generation, that is €118 million in 2024 versus €50 million the prior year, Sportradar is well-positioned for long-term growth, even before factoring in the IMG deal’s full benefits.
SRAD is a stock Jim Cramer recently discussed. While we acknowledge the potential of SRAD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SRAD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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