This article presents an overview of Jim Cramer Says You Should Avoid These 5 Stocks. For a detailed overview of such stocks, read our article, Jim Cramer Says You Should Avoid These 11 Stocks.
5. Dominion Energy Inc (NYSE:D)
Number of Hedge Fund Investors: 26
On March 20, during his program on CNBC, Jim Cramer was asked by a caller about his thoughts on Dominion Energy Inc (NYSE:D). Cramer said that he does like “like” Dominion Energy Inc (NYSE:D) since he believes Dominion Energy Inc (NYSE:D) made “a lot of mistakes” with its balance sheet.
As of the end of the fourth quarter of 2023, 26 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Dominion Energy Inc (NYSE:D). The most notable stake in Dominion Energy Inc (NYSE:D) is owned by Ric Dillon’s Diamond Hill Capital which owns a $185 million stake in Dominion Energy Inc (NYSE:D).
4. Rivian Automotive Inc (NASDAQ:RIVN)
Number of Hedge Fund Investors: 32
Jim Cramer recently said during his program that he’d rather buy a Rivian car than the stock. Cramer said he’s worried about Rivian Automotive Inc’s (NASDAQ:RIVN) balance sheet. Jim Cramer has been having mixed thoughts about Rivian Automotive Inc (NASDAQ:RIVN) over the past several months. In November last year Cramer said that he would prefer Rivian Automotive Inc (NASDAQ:RIVN) shares over Lucid. In December Cramer said that Rivian Automotive Inc (NASDAQ:RIVN) is a “survivor” in the EV space. But Cramer’s latest comments on Rivian Automotive Inc (NASDAQ:RIVN) show that he wants investors to avoid the stock for now.
As of the end of the last quarter of 2023, 32 out of the 933 funds in Insider Monkey’s database were long Rivian Automotive Inc (NASDAQ:RIVN). The biggest stake in Rivian Automotive Inc (NASDAQ:RIVN) is owned by D. E. Shaw which owns a $395.2 million stake in Rivian Automotive Inc (NASDAQ:RIVN).
Here is what Baron Global Advantage Fund has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q3 2023 investor letter:
“Shares of Rivian Automotive, Inc., a U.S.-based electric vehicle manufacturer, continued their volatile trading, and after declining during the first half of 2023, rose 45.7% during the third quarter. Rivian’s unit economics are improving as a result of several factors: i) the company’s production rate is increasing, which enables it to better absorb fixed costs; ii) Rivian is ramping-up the usage of more price effective technologies, such as LFP batteries and its in-house developed motor, Enduro; and iii) the company is benefiting from renegotiated supplier agreements, as its scale and purchasing power have significantly increased over the last few years. Management expects continued progress in profitability ahead as Rivian further scales production. We remain shareholders and believe that the release of Rivian’s new smaller SUV dubbed R2, which is planned for early 2024, would enable the company to compete in the higher volume SUV segment, and significantly expand its addressable market. On the liquidity front, we expect the company to raise additional funds to support its longer-term business plans.”
3. Super Micro Computer Inc (NASDAQ:SMCI)
Number of Hedge Fund Investors: 40
Jim Cramer is explicitly recommending investors to stay away from Super Micro Computer Inc (NASDAQ:SMCI), which is up about 240% this year so far. Cramer has been repeatedly saying that Super Micro Computer Inc (NASDAQ:SMCI) shares have become too hot for him. In a latest program, when asked about the stock, Cramer said:
“No, no, no, no. Look, I would rather buy Nvidia a hundred points higher than it is now than buy SMCI.”
2. DraftKings Inc (NASDAQ:DKNG)
Number of Hedge Fund Investors: 55
DraftKings Inc (NASDAQ:DKNG) is one of the stocks Jim Cramer is recommending investors to avoid for now. In a recent program, Cramer told investors to hit a “pause” on the stock for now and let it come down before buying it. Cramer acknowledged that DraftKings Inc (NASDAQ:DKNG) is a “great company.”
Baron Discovery Fund stated the following regarding DraftKings Inc. (NASDAQ;DKNG) in its fourth quarter 2023 investor letter:
“We added to our position in DraftKings Inc. (NASDAQ;DKNG), the leading mobile sportsbook and gaming operator in the U.S. While we lowered our estimates for the fourth quarter due to lower hold in the month of November, it is important to keep in mind that while hold can be volatile from quarter to quarter, the company continues to slowly increase hold over time (primarily because of a higher percentage of the handle being in higher hold “parlay” bets). We continue to be attracted to DraftKing’s dominant market share and the scale advantages that come with this.”
1. Qualcommm Inc (NASDAQ:QCOM)
Number of Hedge Fund Investors: 78
Earlier this month Jim Cramer had called Qualcommm Inc (NASDAQ:QCOM) a “quandary” and said that while he understands that “people would wanna own it,” the stock is “not for me.” Over the past one year Qualcommm Inc (NASDAQ:QCOM) shares have gained about 37%.
As of the end of the fourth quarter of 2023, 78 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Qualcommm Inc (NASDAQ:QCOM).
Madison Sustainable Equity Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its fourth quarter 2023 investor letter:
“QUALCOMM Incorporated (NASDAQ:QCOM) also reported a solid fourth fiscal quarter with better than expected results. The company guided the first quarter ahead of expectations despite headwinds from Samsung as the inventory headwinds dissipate. Qualcomm remains well positioned in the mobile handset market and should benefit as Artificial Intelligence moves to edge devices which could drive an upgrade cycle.”
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