Jim Cramer, the host of Mad Money, pointed out that ongoing uncertainty around tariff policies is likely to continue influencing market movements. He highlighted that stocks saw a decline on Wednesday after President Donald Trump raised the issue of tariffs during a cabinet meeting.
“We were flying high… when President Trump started talking in a televised cabinet meeting and it didn’t take long for him to be, to talk about his obsession: tariffs.”
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Trump has long been determined to address trade imbalances, often pointing out that many countries have trade surpluses with the United States, a situation he intends to change. Cramer noted that this tariff talk has become such a recurring theme that it is beginning to wear on investors.
He expressed concern that the constant mention of tariffs, especially in the presence of a camera, is increasingly shaping the market environment. As a citizen, Cramer said he has no issue with tariffs if they are used to protect against unfair trade practices.
“But as someone who cares about the stock market, I can tell you that we’re entering a new, more mercurial world where we have to start worrying about the president’s public appearances because we don’t know which country, which continent, which ally he is going to attack next.”
Cramer also emphasized that the unpredictability of tariff discussions has overshadowed other major economic concerns. For example, the bond market, which had dominated financial conversations for years, has taken a back seat due to the overwhelming focus on tariffs. He pointed to a significant drop in long-term interest rates, noting that the 10-year treasury bond, which had seemed on track to approach 5%, has now fallen to 4.25%. He commented that the change in the bond market is striking considering that the U.S. government has continued to hold large bond auctions. He added:
“Long-term interest rates have plummeted. The 10-year treasury, which not that long goes seemed to be headed toward 5%, is now slouching toward 4%, finishing at 4.25% today. That’s insane, especially when you remember that we have kept, keep having gigantic bond auctions… A couple months ago, if we got this kind of action, the bond market stocks would’ve exploded higher, probably making new all-time high after all-time high after all-time high.”
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 February 26. 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 Shed Light on These 10 Stocks
10. Arista Networks, Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 78
Cramer highlighted Arista Networks, Inc.’s (NYSE:ANET) recently reported solid quarterly results but did note that there is more competition now.
“I thought they reported a good quarter. I know people are worried about the Meta business. I think the Oracle business can make up for that. But there are other people who feel like, you know what, everybody’s shooting at them right now. I think it can bounce, but I know that the competition has gotten tougher. Let’s leave it at that.”
Arista Networks (NYSE:ANET) provides advanced networking solutions for data centers, campuses, and routing, focusing on AI-driven switches and software for automation, monitoring, and security. As the company was among those that hit $100 billion in market cap in 2024, Cramer stated in December 2024:
“There’s Arista Networks, which provides hardware and software that monitors data and provides solutions for the big data center companies. No wonder the stock rallied 83% yet it remains relatively unknown, in part because it’s invisible. It makes so-called white boxes. So what? The money’s not invisible.”
9. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 40
Cramer mentioned that he is not fond of the auto market presently when he was asked about Rivian Automotive, Inc. (NASDAQ:RIVN) and explained:
“I don’t like the auto market and while I still appreciate Rivian’s balance sheet, they need so much more money, I think, ultimately, to become a big company. So I cannot go there because I think you’ll look back and say, why did Jim green light that to me? And I’m not going to do that.”
Rivian Automotive (NASDAQ:RIVN) designs, engineers, and produces electric vehicles, including pickup trucks and SUVs, while also offering various consumer services like financing, insurance, maintenance, and charging options. On February 24, DA Davidson analyst Michael Shlisky increased the price target on the stock to $13 from $12, maintaining a Neutral rating on the stock.
While vehicle demand may remain flat at best this year, Shlisky noted that Rivian Automotive (NASDAQ:RIVN) is boosting its marketing efforts to ensure its brand stays prominent ahead of the R2 launch and to take advantage of near-term opportunities with the R1S and R1T. Additionally, the analyst highlighted the company’s growing collaboration with VW and its focus on diversifying revenue through non-vehicle sources.
8. Badger Meter, Inc. (NYSE:BMI)
Number of Hedge Fund Holders: 34
A caller asked Cramer if they should take some money off the table on Badger Meter, Inc. (NYSE:BMI) and Cramer replied:
“No, that is just one of the most steady as-she-goes companies. I actually like Agilent more than Badger Meter, but I think it’s a terrific situation. I would hold onto it. Test and measurement has to be a very good business wherever you find it.”
Badger Meter (NYSE:BMI) manufactures flow measurement, control, and communication solutions, offering smart metering technologies, flow instrumentation, water quality monitoring, and software services to utilities and manufacturers for managing fluids and improving system operations. Recently, Kenneth C. Bockhorst, the Chairman, President, and CEO, expressed immense pride in the company’s full-year 2024 performance.
According to its full-year 2024 earnings report, Badger Meter (NYSE:BMI) achieved an 18% increase in sales year-over-year. In addition to strong sales growth, the company reached record operating profit margins of 19.1%, a 230 basis point improvement from the previous year.
7. Serve Robotics Inc. (NASDAQ:SERV)
Number of Hedge Fund Holders: 10
Talking about Serve Robotics Inc. (NASDAQ:SERV), a caller expressed that they are ready to take some risks as they are in their 20s. Here’s what Cramer said in response:
“Okay, that is a very risky stock. I would normally advise people to either do Tesla, I know that’s become a very risky stock, or NVIDIA, which just reported a nice quarter. But because of your age and how you feel about it, I’m gonna greenlight you but only for someone your age.”
Serve Robotics (NASDAQ:SERV) designs, develops, and operates eco-friendly robots that provide food delivery services in public areas across the United States, with an emphasis on autonomous delivery robots. Even when in January Cramer was asked about the company, he suggested NVDA instead.
“Yeah. Okay, now this is one of these, look, we are going to revert to what, if you want robotics, here’s what you’re going to get from me. You’re gonna get Nvidia because they’re the king of robots. That’s it. Nobody else.”
6. Martin Marietta Materials, Inc. (NYSE:MLM)
Number of Hedge Fund Holders: 54
Discussing Martin Marietta Materials, Inc. (NYSE:MLM), Cramer commented:
“There is another part of Martin Marietta’s business that is about housing and housing-related areas, building new roads there and that’s what’s keeping this from working. I think you gotta wait to see the quarter. I know you’re gonna have to wait till the end of April, but I want you to do that before you pull the trigger.”
Martin Marietta (NYSE:MLM) supplies aggregates and heavy building materials, including crushed stone, sand, gravel, concrete, and asphalt, for construction projects, as well as producing chemicals and lime for various industries such as steel production and soil stabilization. Over the past year, the company stock went down more than 12%. Back in September 2024, Cramer said:
“The more tangible plays are going to be Martin Marietta Materials, which represent the basics of building out new housing developments. But those really start winning later on, once the homebuilders fully embrace new construction.”
5. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 64
A caller highlighted that Shopify Inc. (NYSE:SHOP) is trying to position itself as the go-to destination for omnichannel retailers and that it was a very big high flyer at one time and can go higher still. He asked Cramer for guidance and his response was:
“Shopify, they are, boy, you, I tell you, you, everything you said about it is totally true. It is absolutely the right thing. They are very easy to set up. They are the ones that every single entrepreneur that I know is on Shopify. And I think you nailed it. I know that the last quarter, people misinterpreted it and they sent it down. Why don’t you wait until they report it again? That same thing will happen and you’ll be able to have a better opportunity to buy it than you have right now.”
Shopify (NYSE:SHOP) offers a platform that allows merchants to manage and sell products across multiple channels, providing tools for inventory management, payments, analytics, and financing.
4. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 83
A caller expressed that they wish to invest in cyber security and asked Cramer what he thought about Palo Alto Networks, Inc.’s (NASDAQ:PANW) levels here. Here’s what Cramer said:
“Really interesting question. Nikesh Arora put up a really good quarter. The headlines were out immediately. Before they even could read the release, sellers came in. Had they read the release, they would’ve realized it is fine. I like Palo Alto very much. It’s a great way to get involved in cybersecurity.”
Palo Alto (NASDAQ:PANW) offers various cybersecurity solutions, such as network and cloud security, virtual firewalls, and tools for threat intelligence, prevention, and response across multiple platforms and services. Cramer gushed about the company and its CEO in early February when he stated:
“This one is Nikesh Arora. When he took over at Palo Alto Networks, PANW, a once powerful cybersecurity company that had fallen behind the others, people thought turning this business around was too big a task. At best, he’d just be a deal maker and a so-so one at that. I knew Nikesh is [a] brilliant competitive guy whom I wanted to bank with, which is why we bought the heck outta the stock… Now, Palo Alto had a $19 billion market capitalization when Nikesh took over on June 6th, 2018, it’s now worth $123 billion. He created $104 billion in value.”
3. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 68
Cramer discussed the reason behind General Motors Company (NYSE:GM) stock being inexpensive as he said:
“I just cringe now when the president talks about this stuff. Again, not because I’m against tariffs, I’m in favor of tariffs. I like targeted tariffs. For example, it’s outrageous that China exports steel to Mexico in order to evade our tariffs and then ships the steel here. Gotta try to close that back door. But what do we do with the cars? When we make in the United States, they go back and forth over Mexico border when we make them.
We don’t know and that’s a big reason why General Motors trades at less than five times earnings, just extraordinary cheap. It’s a big reason why CEO Mary Barra announced a $6 billion buyback today. The stock, which is down 9% for the year, had a quick bounce, but it gave up a big chunk of it.”
General Motors (NYSE:GM) develops, produces, and markets a wide range of vehicles and automotive components, in addition to providing software-based services and subscriptions. Its vehicle lineup features brands such as Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Cramer praised Apple Inc. (NASDAQ:AAPL) for its commitment to invest $500 billion in the U.S. over the next four years, calling it a significant contribution to the country’s economy. He dismissed critics who suggested the investment was part of pre-existing plans, stressing that the commitment itself is what matters. Cramer also pointed out that while the company could have directed the funds to India, it chose to invest in the U.S., without receiving any special treatment or immunity for doing so. He added:
“They could be hurt by tariffs tomorrow, seems wrong to me. Maybe that’s why Apple stock got hammered today. It ended up down $6.68 cents or 2.7%. When I searched for any reason, any reason, all I could come up with was one explanation: tariffs. Sure, Apple’s an American company, it’s, it’s gonna make a lot of things here, but it gets a substantial number of its parts from Taiwan. It manufactures a huge amount of its products for cell phones in China.
Because of the president’s somewhat arbitrary nature, it’s very hard to own Apple here now because you do not know if the president is going to attach tariffs to Taiwan, slap more tariffs than the People’s Republic of China… What will that do to Apple’s gross margins? Can it afford margin deterioration when stock trades at 33 times earnings? That’s why the stock went down. These are the musings of someone who actually likes the stock very much, who says, own it, don’t trade it and thinks the company’s sensational.”
Apple (NASDAQ:AAPL) creates and markets a diverse array of consumer electronics, such as smartphones, computers, tablets, wearables, and accessories, in addition to providing subscription-based services.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) was mentioned during the episode and here’s what Mad Money’s host had to say:
“Now, I don’t wanna obscure the company where the stock… that I always say own, don’t trade Nvidia. After the close, it was a very good quarter. Everyone thought this would be the most eventful quarter of earnings season, but it was a non-event. Why? Because it was terrific and Jensen Huang gives us terrific numbers.
He’s about as steady as the president is mercurial. The company put up solidly better-than-expected sales and earnings with strong guidance for the quarter, driven by the strength of their new high-end chips, Blackwell chips. Fantastic. Bravo. While we still have to worry about tariffs and export restrictions, I have to tell you, the numbers were excellent.”
NVIDIA (NASDAQ:NVDA), recognized for its innovations in graphics, computing, and networking technologies, is experiencing notable growth driven by its GPUs and the CUDA software platform, which are important components of AI infrastructure.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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