In this article, we discuss the 5 stocks that Jim Cramer says you should sell. If you want to read about some more stocks that Cramer is bearish on, go directly to Jim Cramer Says You Should Sell These 10 Stocks.
5. NortonLifeLock Inc. (NASDAQ:NLOK)
Number of Hedge Fund Holders: 36
NortonLifeLock Inc. (NASDAQ:NLOK) provides cyber safety solutions. Cramer was bearish on the stock during the Lightning Round of his show on April 12. The Mad Money stock screener reveals that the journalist investor has a Sell rating on the stock.
On March 29, Morgan Stanley analyst Hamza Fodderwala downgraded NortonLifeLock Inc. (NASDAQ:NLOK) stock to Equal Weight from Overweight with a price target of $28, noting that “slowing sales and the macro environment” suggested downside risk for the revenue estimates of the company in the coming months.
At the end of the fourth quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in NortonLifeLock Inc. (NASDAQ:NLOK), up from 34 in the previous quarter worth $1.2 billion.
4. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 113
Netflix, Inc. (NASDAQ:NFLX) owns and runs a streaming platform. Cramer was generally bearish on the company during his show on April 14 and even the upcoming quarterly earnings report of the firm failed to excite him. He underlined streaming overload on the consumer as one of the key reasons behind his bearish outlook on the company.
On April 14, Morgan Stanley analyst Benjamin Swinburne kept an Equal Weight rating on Netflix, Inc. (NASDAQ:NFLX) stock and lowered the price target to $425 from $450. Other advisors like BMO Capital and Barclays have also lowered their targets on the stock recently.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Netflix, Inc. (NASDAQ:NFLX) with 4.1 million shares worth more than $2.4 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Netflix, Inc. (NASDAQ:NFLX) was one of them. Here is what the fund said:
“We were quite active during the quarter, leveraging volatility to add 10 new names to the portfolio while exiting seven others. Among our new purchases was Netflix in the communication services sector. Netflix, Inc. (NASDAQ:NFLX) is the global leader in the production and distribution of streaming entertainment, operating a high-quality subscription business with room for continued growth in a large addressable market. The stock has faced headwinds due to concerns around subscriber growth. We attribute this recent weakness to COVID-related production delays that have slowed the pace of new shows premiering on the platform and believe Netflix, Inc. (NASDAQ:NFLX) has a strategic advantage in scaling its business given its large content library and lead versus peers in establishing local content studios and partnerships.”
3. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 70
AT&T Inc. (NYSE:T) is a media, communications, and technology firm. Cramer discussed the stock during the Lightning Round of his show in late March. While talking about the firm, the investor underlined that right now, it was not just prudent to invest in the firm because it was doing “terribly”. He further added that it was just “not a great company”.
On April 14, Wells Fargo analyst Eric Luebchow maintained an Equal Weight rating on AT&T Inc. (NYSE:T) stock and lowered the price target to $21 from $26, noting that a promotional first quarter would weigh on the profitability metrics of the wireless sector in the coming months.
At the end of the fourth quarter of 2021, 70 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in AT&T Inc. (NYSE:T), compared to 66 in the preceding quarter worth $3.2 billion.
In its Q4 2021 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and AT&T Inc. (NYSE:T) was one of them. Here is what the fund said:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T Inc. (NYSE:T) to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
2. Gores Guggenheim, Inc. (NASDAQ:GGPI)
Number of Hedge Fund Holders: N/A
Gores Guggenheim, Inc. (NASDAQ:GGPI) is a Colorado-based special purpose acquisition company. Late last year, the firm signed a merger agreement with electric vehicle maker Polestar. The latter is expected to operate in over 30 markets by the end of next year. It is also seeking to increase EV sales to around 290,000 by the end of 2025.
Cramer gave Gores Guggenheim, Inc. (NASDAQ:GGPI) stock a Sell rating during the Lighting Round of his show on April 12. He said there was a time when he would have recommended the stock but he could not do that anymore.
1. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 224
Meta Platforms, Inc. (NASDAQ:FB) is a diversified technology company. Cramer gave the stock a Sell rating during the Discussed Stock segment of his show on April 11. Cramer was of the opinion that in the present economic environment, it was wise to forget FAANG stocks and focus on value-oriented plays.
On April 14, MKM Partners analyst Rohit Kulkarni maintained a Buy rating on Meta Platforms, Inc. (NASDAQ:FB) stock and lowered the price target to $315 from $365, urging “caution on the macro-exposed online advertising sector given the direct impact of Russia-Ukraine war”.
At the end of the fourth quarter of 2021, 224 hedge funds in the database of Insider Monkey held stakes worth $31.8 billion in Meta Platforms, Inc. (NASDAQ:FB), compared to 248 in the preceding quarter worth $38.5 billion.
In its Q4 2021 investor letter, Boyar Value Group, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:
“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms, Inc. (NASDAQ:FB) (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”
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