Jim Cramer, the host of Mad Money, on Tuesday, took a close look at President Donald Trump’s recent actions and his effect on the stock market, urging investors to pay closer attention to his moves.
“Look, people on Wall Street, you better start taking the President of the United States more seriously or else you’re gonna keep losing money. Look, you don’t have to like him, but I’m begging you, listen to his words.”
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Cramer pointed to last Friday, when President Trump announced significant tariffs on Canada and Mexico, 25% while only imposing a 10% tariff on China. The decision left many on Wall Street shaken, especially since Trump’s actions have been anything but superficial. Cramer explained that the president’s moves are not idle threats.
“Of course, it’s not just tariffs. Yesterday the president said we’re gonna have a sovereign wealth fund like the Saudis. I heard a lot of snickering about that one, a lot of disparagement, a lot of laughs. “
He questioned why Wall Street seemed to dismiss the idea outright. He pointed out that, despite widespread criticism of many of Trump’s cabinet choices, Senate Republicans have consistently backed him. “They’re scared to death of the guy,” Cramer observed. According to Cramer, whether or not one likes Trump is irrelevant, the fact remains that Congress and the courts are unlikely to stop him, except in cases where his actions are blatantly unconstitutional. Therefore, he argued, the creation of a sovereign wealth fund is likely to be successful.
“Now, I know that the president said on Friday that he doesn’t care what the stock market says about his tariffs, but that’s not because he’s oblivious to the market like his predecessor was. It’s because the sellers don’t get the plan. They’re the oblivious ones. They don’t get that he’s trying to do something that will ultimately end up being really good for the stock market and that’s how the stock market could rally today. That’s how it could recover yesterday.”
Jim Cramer Shed Light on These 8 Stocks Recently
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 4. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer Shed Light on These 8 Stocks Recently
8. Tempus AI, Inc. (NASDAQ:TEM)
Number of Hedge Fund Holders: 7
When a caller asked Cramer about Tempus AI, Inc. (NASDAQ:TEM), he suggested Stryker instead.
“Really wanna start with Tempus? I would start with Stryker. Let’s, let’s go a little higher end. I think Stryker’s the better one and if you want AI then you can go with Medtronic. Both are better than the one you picked. No offense to yours, but I like mine more.”
Tempus AI (NASDAQ:TEM) is a healthcare technology company that provides diagnostic testing, molecular profiling, and analytical services, along with platforms for clinical trial matching, research, and data analysis to healthcare providers, and pharmaceutical, and biotechnology companies. Over the past year, Cramer’s recommended SYK stock saw over 14% growth while MDT stock was up only 4.8% and TEM gained more than 53% over the same period.
Baron Funds stated the following regarding Tempus AI, Inc (NASDAQ:TEM) in its Q3 2024 investor letter:
“Shares of Tempus AI, Inc (NASDAQ:TEM) contributed to performance. Tempus is a cancer diagnostics company that provides genomic testing results. Tempus has also amassed an over 200 petabyte proprietary multimodal dataset that combines clinical patient data with genomic testing data. In addition to using this data to empower more intelligent diagnostics for its own tests, Tempus also licenses this data to biopharmaceutical companies which use it to design smarter clinical trials and identify potential new drug targets. We think this proprietary dataset is unique with meaningful barriers to entry, and brings meaningful value to biopharmaceutical R&D. As we mentioned in the letter from last quarter, shares have been incredibly volatile. We took advantage of this volatility to buy a meaningful position when shares sold off into the low $20’s per share from an IPO price of $37. When shares spiked into the mid-$70’s (likely due to short sellers covering losses as shares rose), we took profits on a meaningful portion of the investment as we believed valuation had become stretched (shares now trade in the high $40’s to low $50’s level). We like our position sizing now, and would add to the position at lower valuations. We believe that Tempus has significant growth ahead of it and we are excited about its unique business model.”
7. Cerence Inc. (NASDAQ:CRNC)
Number of Hedge Fund Holders: 10
Cramer was bullish on Cerence Inc. (NASDAQ:CRNC) and highlighted the big change in its stock price.
“Now, Cerence actually has some game. They had that good partnership. Let’s go with Cerence. You know why? I’ll tell you why. Because it’s down huge from $27 down to $12. I think you got a real interesting level. Let’s pull the trigger.”
Cerence (NASDAQ:CRNC) offers AI-driven virtual assistants and conversational AI solutions, including speech recognition, natural language understanding, and text-to-speech, along with edge software, cloud-connected components, and professional services for the mobility and transportation sector. As mentioned in our article, Jim Cramer Discussed These 29 Stocks Ahead Of Major AI Event, Cramer discussed the company during Squawk on the Street and stated:
“I’ve got Cerence. Now this is in honor of a tie up with, yes with NVIDIA. This is a company that’s run by Brian Krzanich, before that CDK and then of course the CEO of Intel. During a period where I still think Intel had some greatness… But I think the key thing about Cerence is that we have AI and there isn’t any limit to where it is. Hence AI is a multiple enhancer… I have Brian Krzanich on tonight. Now he’s Cerence, and of course that’s what we’re gonna talk about. Because of a deal with of course NVIDIA. But he knows the auto business. Cerence is auto, uh, AI, and I want to ask him what the hell happened. Because at the previous job he had was CDK software which was bought up by Brookfield in a leveraged buyout. This man knows about cars. He knows about semis. Something’s going on that makes it so cars are too expensive to repair. And it’s really hurting the working person.”
6. Hims & Hers Health, Inc. (NYSE:HIMS)
Number of Hedge Fund Holders: 31
A caller asked Cramer his opinion on Hims & Hers Health, Inc. (NYSE:HIMS), and here’s what he said in response:
“Listen to me and listen to me good… Here’s what happens. This stock is a short squeeze and as long as people are shorting, it’s gonna go higher and the, the moment it’s not, it’s gonna go lower. That’s too hard for me to call.”
Hims & Hers (NYSE:HIMS) provides a telehealth platform offering prescription and non-prescription health and wellness products and services, including medication, skin care, sexual health, hair care, and wellness items, along with ongoing care from licensed healthcare professionals. Interestingly enough, Cramer recommended starting a position in the stock back in July 2024 as he remarked:
“I’d never recommend paying up for HIMS after that big run to $25, but now that it’s pulled back to $20, I think you can justify building a position here, especially if you buy it gradually on the way down and don’t place all your hopes on the temporary GLP-1 business, even as it is incredibly strong… I liked Hims & Hers before this whole GLP-1 dalliance sent it into the stratosphere. Those great first quarter numbers didn’t have any benefit from knock-off GLP-1s, and I bet the business stays strong.”
Since his comment, Hims & Hers (NYSE:HIMS) stock has gained over 107%.
5. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 42
When asked about Coinbase Global, Inc. (NASDAQ:COIN), Cramer advised to go for Bitcoin instead.
“Listen, sunshine, just go buy coin, just go buy the Bitcoin. Well, yeah. What do we do with the Coinbase? We don’t want the Coinbase, we want the Bitcoin because that could be a, by the way, the, we make that special petroleum reserve slash Bitcoin reserve, that’ll do better than Coinbase.”
Coinbase (NASDAQ:COIN) provides technology and infrastructure for the cryptocurrency economy, offering consumer financial accounts, a marketplace for institutional transactions, and development tools for developers. In November 2024, Cramer said:
“Coinbase is what I call an up stock. It’s just an up stock. You’re not gonna stop it. Palantir’s an up stock. Coinbase is an up stock. Robinhood’s an up stock. These are stocks that there are buyers every time they pull back and there probably will be to year end. Coinbase is a winner.”
4. MongoDB, Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 49
In response to a caller’s question about MongoDB, Inc. (NASDAQ:MDB), Cramer highlighted analyst sentiment around enterprise software stocks and advised:
“Oh yeah, I… will say this… You’d be catching it at the right time. I think the analysts are all starting to upgrade the, the enterprise software again. I think it’s worth a stab, I really do. But it’s a trade, it’s not an investment.”
MongoDB (NASDAQ:MDB) offers a flexible database platform with a range of solutions, including MongoDB Atlas, a multi-cloud database service, MongoDB Enterprise Advanced, a paid offering for businesses, and Community Server, a free version for developers. Early January, Cramer highlighted the company among those that finished last in the Nasdaq 100 in 2024 and said:
“Second, MongoDB, down 43%… helps you develop applications, data modeling… 2024 was the year we turned on enterprise software simply because there are too many companies doing the same thing. So if you have one bit of slowness, you regard it as a dead man walking. MongoDB is a pretty good company, but it’s 72 times earnings. No, thank you. It was up big today. Hope springs eternal.”
Since the beginning of 2025, MongoDB (NASDAQ:MDB) stock is up around 12%.
3. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 52
Discussing The Boeing Company (NYSE:BA), when a caller told Cramer that they sold one share and acknowledged that it is not “a lot”, Cramer said:
“No, it does. It is a lot. It is a lot, sir. If I could get everybody to buy one share of a really good stock, I’ve won. I have won. But I will tell you this, I would not be a seller of Boeing anymore. I think they’ve really gotten [it] together and I would, if it dipped, I’d buy that one share back and never ever say that that’s not a lot of stock. When I, in 1984, I was told to buy one share of Berkshire Hathaway. Did I do it? No, it would’ve made $200,000 from $2,000. So one share amounts a great deal.”
Boeing (NYSE:BA) specializes in the design, development, production, and sales of a wide range of products, including commercial aircraft, military planes, satellites, missile defense technologies, and space exploration programs. In October 2024, Cramer noted the investor sentiment around the stock as he commented:
“Here’s a shocker. No matter how poorly Boeing is run, and it’s become the benchmark for bad management, the big institutions are possibly Pavlovian about buying the stock. They can’t get enough of it. Boeing has to hope that the buyers can maintain their appetite through an already miserable pre-announced quarter because it needs to sell about $25 billion in stock to fix its balance sheet. And I’m betting that deal could come very, very quickly, maybe even the day the company reports. If you really want to own Boeing, save your powder until after the secondary offering, as it’ll most likely come at a nice discount.”
2. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 55
Cramer commented that there is a possibility that FedEx Corporation (NYSE:FDX) might find itself in the middle of a trade war.
“Well, the problem with FedEx is if you’re gonna be involved in the trade war, FedEx is gonna be caught up in that trade war. And I like it a lot more than UPS and I think it’s incredibly well run. But I’m just telling you that… you don’t buy the transports in a trade war. You gotta wait for FedEx to come down a little. Now it is selling at 13 times earnings. If it gets 11, 12, you just have to pull the trigger.”
FedEx (NYSE:FDX) provides a range of services such as transportation, e-commerce solutions, and business services, which include express shipping, small-package deliveries, freight transport, and other business support offerings. Before the company reported its earnings result in December 2024, Cramer said:
“The transports have been picking up of late, which tells me maybe we gotta be a little more hopeful when the great FedEx reports. This company’s been working hard to take out costs and it’s still working aggressively to improve gross margins. I think we’ll hear good things… This is the period where people are most nervous about it because of the upcoming holiday.”
It is worth noting that since then, FedEx (NYSE:FDX) stock has gone down around 9%.
1. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 68
During the episode, Cramer noted AbbVie Inc.’s (NYSE:ABBV) success and called it a buy.
“Oh, AbbVie is just a gem and… They bought a company that with something, it failed and no one even cared when it had to do with brain work. AbbVie is a winner. I can’t believe the stock dropped so much. I think AbbVie is a buy.”
AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company involved in the research, development, production, and promotion of a wide variety of medicines. Polaris Capital Management stated the following regarding AbbVie Inc. (NYSE:ABBV) in its Q3 2024 investor letter:
“U.S. biopharma/biotech companies topped the health care sector, with the majority of holdings posting returns in excess of 10%. AbbVie Inc. (NYSE:ABBV) showed positive top-line growth from its immunosuppressive drugs, Skyrizi and Rinvoq. Abbvie’s management continues to work through the loss of exclusivity from Humira, switching patients to Skyrizi or Rinvoq rather than Humira biosimilars.”
While we acknowledge the potential of AbbVie Inc. (NYSE:ABBV) 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 timeframe. If you are looking for an AI stock that is more promising than ABBV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.
