On Thursday, Jim Cramer, host of Mad Money, discussed the current state of the market following the election, noting that it has been marked by extreme volatility, with some sectors experiencing massive gains while others have faced significant losses. Cramer observed a recurring pattern in the market:
“When it’s loved in this market, it’s really loved, but when it’s hated, I mean just forget about it. That’s been the dynamic ever since the election.”
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Cramer identified certain industries that have seen notable growth, explaining that these sectors have thrived for specific reasons. However, he cautioned that investors should be wary of jumping in too quickly, as these stocks need time to cool off before they become attractive again. In particular, he mentioned how companies with subscription-based models have been seeing a lot of attention, largely because of their steady revenue streams.
Another sector Cramer highlighted as being in the midst of a strong rally is enterprise software. He explained that companies in this space, particularly those providing essential products to large corporations, have been soaring.
While some sectors are riding high, Cramer also pointed to two areas that are currently undervalued but could see a rebound: pharmaceuticals and semiconductors. He speculated that the pharmaceutical sector has been dragged down in part due to concerns over Robert F. Kennedy Jr.’s controversial appointment as the head of the Department of Health and Human Services. However, Cramer suggested that these concerns may already be priced into the stocks.
Similarly, Cramer noted that semiconductor stocks have struggled. He said that the hatred comes from doubts surrounding the adoption of artificial intelligence-powered PCs. In his closing remarks, Cramer stressed that while there are plenty of stocks that are currently over-loved, many of them genuinely deserve the attention they’re receiving, but not necessarily at their current inflated prices.
As for sectors that seem to be in a perpetual decline, Cramer said he would be interested in buying them, but only after seeing signs that they’ve stopped falling. He added that any potential rebound will depend on greater clarity from President-elect Trump, who he believes could have a significant impact on the market, particularly with his potential to cause turbulence for many stocks.
“We need to see the floor of the abyss, unless, of course, we’re bouncing off it already. And for the overly loved, don’t look for Trump for support. He can surprise you with what concerns him. Do not get too cocky. Do not get too smug. It will hurt you for certain.”
Jim Cramer Talked About These 11 Stocks Recently
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For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 14 and listed the stocks in the order that Cramer mentioned them.
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Jim Cramer Talked About These 11 Stocks Recently
11. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Talking about semiconductor stocks like Advanced Micro Devices, Inc. (NASDAQ:AMD) falling out of favor this year, Cramer said, “Even AMD has been very heavy.”
Advanced Micro Devices (NASDAQ:AMD) has become a significant player in the semiconductor industry. A major growth area for the company is its data center segment, particularly its AI accelerators. Management has highlighted the growing potential of the AI market, projecting that the total addressable market for AI accelerators in the data center GPU space will reach $500 billion by 2028 and will have an annual growth rate of 60%.
This segment has already become a crucial part of the company’s business. For the third quarter of fiscal 2024, its data center revenue surged by 122%, reaching a record $3.5 billion. This impressive growth was fueled by the increasing demand for server CPUs and GPUs, which are essential for powering AI-driven applications and servers.
On November 12, according to TipRanks, Citi analyst Christopher Danely noted that semiconductor earnings estimates have dropped by 11%, and the SOX index has fallen by 9%, primarily due to weaker performance from companies like Microchip, NXP Semiconductors, and Intel. However, Citi suggests the selloff is nearly over and that attention will soon turn to 2025.
The firm projects global semiconductor sales to rise by 9% year-over-year in 2025, following a 17% increase in 2024. Danely anticipates that the challenges in the industrial sector will soon ease, and the correction in the automotive market will likely conclude by mid-2025. He also pointed out that 75% of semiconductor demand seems stable, advising investors to build positions in semiconductor stocks and adopt a more aggressive approach heading into Q1. Advanced Micro Devices (NASDAQ:AMD) is among the firm’s Buy-rated names.
10. Pfizer Inc. (NYSE:PFE)
Highlighting Pfizer Inc.’s (NYSE:PFE) vaccine business, Cramer said:
“Right now, the drug stocks… are despised beyond all belief, just drop-dead despised. There seems to be no price where they’re safe. They are hated. We’re hearing that Robert F. Kennedy, Jr., big vaccine denier, will get appointed as the Secretary of Health and Human Services, which is definitely bad for Big Pharma. Maybe that’s why they’ve been going down so hard but these stocks have already been hit. I think that the hatred is almost priced in, except for the stocks of companies that sadly make vaccines. Robert F. Kennedy Jr. has not been a big fan of the vaccines, to say it mildly… Pfizer, which picked up some potentially revolutionary cancer therapies from Seagen, is now trading at nine times earnings, 6.5% yield, for heaven’s sake. Although, it has a vaccine business and it calls vaccines, and I quote, ‘one of the greatest public health advancements of all time’… Still, anything good there, it could fly. But these stocks are trading like Bernie Sanders just won the election on a platform of socialized medicine. These stocks are just way too hated.”
Pfizer (NYSE:PFE) specializes in discovering, developing, manufacturing, and distributing biopharmaceuticals across a wide range of therapeutic areas, including cardiovascular, infectious diseases, oncology, immunology, and vaccines, with products for chronic conditions, cancer, and COVID-19. A significant development in its growth came in December 2023, when the company completed its $43 billion acquisition of Seagen, a known name in cancer treatments.
This strategic move doubled the company’s oncology pipeline, adding 60 experimental oncology programs to its research and development efforts. With this acquisition, the company has created a comprehensive oncology research organization, retaining critical talent and accelerating the development of new therapies.
The integration of Seagen is expected to significantly advance Pfizer’s (NYSE:PFE) cancer drug pipeline, which has the potential to produce at least eight blockbuster medicines by 2030, up from five in its current portfolio. In addition to expanding its oncology division, management projects that the company’s pipeline of upcoming medicines will account for approximately 65% of the company’s revenue by 2030.
9. Merck & Co., Inc. (NYSE:MRK)
Cramer mentioned that drug stocks like Merck & Co., Inc. (NYSE:MRK) are hated in the market these days and said:
“Right now, the drug stocks… are despised beyond all belief, just drop-dead despised. There seems to be no price where they’re safe. They are hated. We’re hearing that Robert F. Kennedy, Jr., big vaccine denier, will get appointed as the Secretary of Health and Human Services, which is definitely bad for Big Pharma. Maybe that’s why they’ve been going down so hard but these stocks have already been hit. I think that the hatred is almost priced in, except for the stocks of companies that sadly make vaccines. Robert F. Kennedy Jr. has not been a big fan of the vaccines, to say it mildly. Merck, with a great stable of cancer drugs, now sells for just over 10 times next year’s earnings… But these stocks are trading like Bernie Sanders just won the election on a platform of socialized medicine. These stocks are just way too hated.”
Merck (NYSE:MRK) is a leading global healthcare company focused on the research, development, and commercialization of a broad spectrum of pharmaceutical products. Its pipeline of drug development programs remains expansive, including dozens of ongoing initiatives aimed at addressing unmet medical needs.
This pipeline has been further strengthened through strategic acquisitions, such as the purchase of Acceleron Pharma in 2021. This acquisition led to the approval of Winrevair, a new treatment for pulmonary arterial hypertension.
Additionally, in the third quarter, the company acquired an innovative investigational bispecific T-cell engager from Curon, which has potential applications in both oncology and immunology, aligning with its ongoing efforts to address critical unmet needs in these fields. Merck (NYSE:MRK) has revised its full-year sales forecast to a range of $63.6 billion to $64.1 billion. The company also expects its full-year non-GAAP EPS to fall between $7.72 and $7.77.
8. JPMorgan Chase & Co. (NYSE:JPM)
Cramer talked about how banking stocks like JPMorgan Chase & Co. (NYSE:JPM) gained rapidly after the election and called it justified.
“Then there are the banks. We’ve had a bull market in banks for most of the year, but they really caught fire after Trump won the election. I think this move’s actually justified because bank regulators won’t be as tough and unforgiving as the Biden bunch and we’ll have many more mergers… With the changing of the guard at these agencies and among the bank examiners, the financials are simply worth more under Trump than they were under Biden, no kidding. Yet, even after this monster move, you know what? Their stocks are still cheap… JPMorgan’s had a similar move and it boasts a similarly low price-to-earnings multiple, even though it could have explosive earnings growth next year if the regulators just ease up, resulting in more IPOs and more mergers, and I think that’s gonna happen.”
JPMorgan Chase (NYSE:JPM) is one of the largest and most prominent financial institutions in the world, offering a wide range of services to consumers, businesses, and institutional clients. On November 14, Wells Fargo raised the price target on the company stock to $270 from $240 and maintained an Overweight rating.
This adjustment comes as part of a broader analysis of large-cap banks. According to Wells Fargo, the anticipated outcomes of the upcoming U.S. elections could lead to a significant regulatory shift, with the potential to reshape the financial sector over the next 15 years. Additionally, the firm cited expectations of higher EPS, driven by greater flexibility for banks to deploy and return capital and an anticipated resurgence in bank mergers.
7. Wells Fargo & Company (NYSE:WFC)
During the episode of Mad Money, Cramer called Wells Fargo & Company (NYSE:WFC) stock cheap. He said:
“Then there are the banks. We’ve had a bull market in banks for most of the year, but they really caught fire after Trump won the election. I think this move’s actually justified because bank regulators won’t be as tough and unforgiving as the Biden bunch and we’ll have many more mergers… With the changing of the guard at these agencies and among the bank examiners, the financials are simply worth more under Trump than they were under Biden, no kidding. Yet, even after this monster move, you know what? Their stocks are still cheap. Wells Fargo stock… it’s up 48% but trades at less than 14 times earnings. Average S&P stock sells for 23 times earnings and they’re not as good as Wells. Even if you think the S&P is dramatically overvalued, which I know some of you do, Wells Fargo stock is still absurdly cheap.”
Wells Fargo (NYSE:WFC) is a major global financial services institution, offering a broad range of banking, investment, mortgage, and financial products. In the last earnings call, CEO Charles Scharf highlighted the company’s transformation, noting that its earnings profile has changed significantly over the past five years. The company has focused on making targeted investments in various areas of its business while de-emphasizing or divesting from others.
In the third quarter of fiscal 2024, the company repurchased $3.5 billion in common stock during the quarter, bringing the total stock repurchases for the first nine months of the year to over $15 billion, a 60% increase compared to the same period last year. As a result of these efforts, the company’s diluted common share count decreased by 7% from the previous year, and by 22% over the past five years, demonstrating its focus on enhancing shareholder value.
Looking ahead, Wells Fargo (NYSE:WFC) management anticipates that net interest income for the fourth quarter of fiscal 2024 will be similar to that of the third quarter. This projection suggests a roughly 9% decline in full-year 2024 net interest income compared to 2023.
6. The Walt Disney Company (NYSE:DIS)
Highlighting The Walt Disney Company (NYSE:DIS) stock gain, Cramer mentioned that the market gravitates toward companies with a growing subscriber base.
“[The] second group that’s getting maybe too much love: This market is nuts for subscription products. They all have huge recurring revenue streams and membership dues, and their stocks are huge winners. All these are benefiting from endless positive research calls, they just appear each morning as if by magic… Today, Disney got a boost after it reported a good quarter with some profitable growth in streaming properties. Hmm, no wonder its stock’s soared more than $6 or 6.2%. They can’t resist positive subscription data of any sort.”
Disney (NYSE:DIS), a global leader in entertainment, continues to extend its influence across multiple sectors, with a particular focus on its streaming business. For the fourth quarter of fiscal 2024, the company saw notable progress in its Entertainment DTC segment, which includes platforms like Disney+ and Hulu. This division reported an operating profit of $253 million, exceeding Wall Street expectations. Perhaps more significant is its projection that the Entertainment DTC will see its profitability more than triple to $875 million in 2025.
The success of Disney’s (NYSE:DIS) streaming operations helped offset a decline in its traditional linear networks business. In the quarter, the company’s combined DTC streaming businesses reached an operating profit of $321 million, marking a substantial improvement from earlier periods. Its streaming services showed strong momentum, with a 15% increase in DTC revenue driven by subscriber growth and higher advertising revenue. New Disney+ Core subscribers added in the quarter were 4.4 million to reach a total of 122.7 million.
5. Spotify Technology S.A. (NYSE:SPOT)
Cramer commented how, despite Spotify Technology S.A. (NYSE:SPOT) missing earnings estimates, the stock climbed higher. Here’s what Mad Money’s host had to say:
“[The] second group that’s getting maybe too much love: This market is nuts for subscription products. I like these stocks too… They all have huge recurring revenue streams and membership dues, and their stocks are huge winners. All these are benefiting from endless positive research calls, they just appear each morning as if by magic… Spotify’s insane. It’s been up all year, but it just gained nearly 60 points after reporting a quarter Tuesday night that actually failed to meet the earnings estimates. Doesn’t matter, as Spotify is a subscription company and subscriptions were indeed strong. So we get a Jack and the Beanstalk-like situation, which just goes up and up and up. All very odd and yes, too much love.”
Spotify (NYSE:SPOT) is a global leader in audio streaming, offering subscription-based services that provide ad-free, unlimited access to music and podcasts for paying users, while also offering ad-supported access for free users. The company continues to experience solid growth, with its most recent quarterly performance reflecting this momentum.
Looking ahead to the fourth quarter, Spotify (NYSE:SPOT) expects to reach 260 million premium subscribers, which represents a net gain of 8 million. The company also anticipates total monthly active users will rise to 665 million, a net increase of 25 million from the previous quarter. The company’s total revenue for Q4 is projected to be €4.1 billion, with operating income forecast at €481 million. Management expects a gross margin of 31.8%, which highlights its continued focus on profitability and operational efficiency.
4. Netflix, Inc. (NASDAQ:NFLX)
Cramer likes Netflix, Inc. (NASDAQ:NFLX) but mentioned the constant increase in stock price because of a stream of analyst price target increases.
“[The] second group that’s getting maybe too much love: This market is nuts for subscription products. I like these stocks too… They all have huge recurring revenue streams and membership dues, and their stocks are huge winners. All these are benefiting from endless positive research calls, they just appear each morning as if by magic. Netflix has the most fanboys and analysts will come out and raise its price target based on the new ad model, which is going so well. Then the stock goes higher, and then another analyst will come out the next day and raise her price target for the same reason. It just won’t stop, always on the same piece of information. That is not cricket.”
Netflix (NASDAQ:NFLX) is a leading global provider of streaming entertainment, offering a vast array of movies, TV shows, and original content to millions of subscribers worldwide. In the third quarter of fiscal 2024, the company reported a strong financial performance, with revenue growing by 15%, driven primarily by a 14% increase in its subscriber base. A key factor contributing to this growth is the rise in subscription prices, particularly in its core markets of the U.S. and Canada, where users are now paying an average of 5% more than the previous year.
As of September 30, the company’s subscriber count reached an impressive 283 million, a number that continues to climb each quarter. Spencer Neumann, the company’s CFO, noted that there are still “hundreds of millions of households that aren’t members,” suggesting significant potential for further growth. Looking ahead, Netflix (NASDAQ:NFLX) is projecting between $6 billion and $6.5 billion in free cash flow for fiscal year 2024.
3. Atlassian Corporation (NASDAQ:TEAM)
Cramer mentioned that Atlassian Corporation’s (NASDAQ:TEAM) high price-to-earnings ratio is giving him vertigo.
“Let’s start with love: This market [is] once again enamored with those enterprise software stocks that are so expensive… Now these have all had parabolic moves, up double digits this month, even if they all pulled back a little bit today. If you’re selling software to big businesses, you can do no wrong in this market… I think Atlassian, symbol TEAM, which makes worker collaboration software kicked off this whole move at the beginning of the month when it reported a fantastic quarter, but now it sells for 77 times earnings. It’s giving me vertigo. Now, enterprise software does tend to not have much Chinese exposure, which is a positive heading into Trump’s second term. How much is that worth? Not clear. At the CNBC Investing Club meeting, Jeff Marks and I talked about which companies could be helped or hurt by Trump 2.0. Enterprise software, it came out unscathed. I think that should put a premium on enterprise software stocks. But at this point, enough is enough. I say let ’em come down and then you can buy.”
Atlassian (NASDAQ:TEAM) designs and develops a range of software products aimed at improving project management, collaboration, communication, and enterprise agility for businesses and teams across various functions. Its products continue to be in high demand, which is reflected in its growing customer base and increasing revenue.
For Q1 of fiscal 2025, the company reported revenue of nearly $1.2 billion, marking a 21% increase from the same period the previous year. This result surpassed analyst expectations, and the company’s cloud revenue showed a notable 31% year-over-year growth, which is a positive sign given the company’s efforts to transition customers to its cloud-based offerings.
As of Q1, the company has a base of over 300,000 customers. Despite the revenue growth, Atlassian (NASDAQ:TEAM) reported a GAAP operating loss of $32 million, a larger loss than the $18.9 million recorded in the prior year. Net losses also widened to $123.8 million, compared to $31.9 million the year before.
2. ServiceNow, Inc. (NYSE:NOW)
Cramer recently talked about ServiceNow, Inc.’s (NYSE:NOW) parabolic move and said:
“Let’s start with love: This market [is] once again enamored with those enterprise software stocks that are so expensive… Now these have all had parabolic moves, up double digits this month, even if they all pulled back a little bit today. If you’re selling software to big business, you can do no wrong in this market… Now see, with ServiceNow, a very good company that uses artificial intelligence to help improve the enterprise workflow among many other things. ServiceNow now sells for just under 75 times earnings. I had to take it outta the Charitable Trust bullpen today at our CNBC Investing Club monthly meeting… Darn thing just went too parabolic for me again… Now, enterprise software does tend to not have much Chinese exposure, which is a positive heading into Trump’s second term. How much is that worth? Not clear. At the CNBC Investing Club meeting, Jeff Marks and I talked about which companies could be helped or hurt by Trump 2.0. Enterprise software, it came out unscathed. I think that should put a premium on enterprise software stocks. But at this point, enough is enough. I say let ’em come down and then you can buy.”
ServiceNow (NYSE:NOW) is a leading provider of digital solutions designed to help businesses automate workflows and enhance operational efficiency across a variety of enterprise functions. According to the company, more than 85% of Fortune 500 companies rely on its platform, contributing to a customer base that exceeds 8,100 organizations worldwide.
ServiceNow (NYSE:NOW) has continued to experience strong growth. For the third quarter of fiscal 2024, the company reported total revenue of approximately $2.8 billion. Of this, more than $2.7 billion was generated from subscription-based services. This marks a 23% increase in revenue year-over-year.
Additionally, the company reported adjusted earnings per share of $3.72, which significantly surpassed analyst expectations. The company’s customer base has also expanded, with the number of clients generating net annual contract value (ACV) of $1 million or more rising by 14%, bringing the total to 2,020 customers with more than $1 million in ACV.
1. Salesforce, Inc. (NYSE:CRM)
On Thursday, Cramer said that enterprise software stocks like Salesforce, Inc. (NYSE:CRM) are loved presently and commented that buying enterprise software stocks should be done when they come down.
“Let’s start with love: This market [is] once again enamored with those enterprise software stocks that are so expensive… Now these have all had parabolic moves, up double digits this month, even if they all pulled back a little bit today. If you’re selling software to big businesses, you can do no wrong in this market. But man, speaking as a big believer in Salesforce, we’ve owned it for the Charitable Trust forever, I think the stock’s been on an unsustainable tear. I think it needs a breather. The darn thing’s gone from $243 to $331 in a little more than two months. Again, I adore Salesforce. I just wish the stock would digest its gains here because the kind of straight up rally makes me nervous… Now, enterprise software does tend to not have much Chinese exposure, which is a positive heading into Trump’s second term. How much is that worth? Not clear. At the CNBC Investing Club meeting, Jeff Marks and I talked about which companies could be helped or hurt by Trump 2.0. Enterprise software, it came out unscathed. I think that should put a premium on enterprise software stocks. But at this point, enough is enough. I say let ’em come down and then you can buy.”
Salesforce (NYSE:CRM) provides a comprehensive customer relationship management platform that helps businesses manage sales, customer service, marketing, analytics, and commerce, with integrated tools to enhance customer experiences and workflows. In September, it introduced Agentforce, a new suite of autonomous AI agents designed to assist employees by automating routine tasks across service, sales, marketing, and commerce. The AI agents are built to analyze data, make decisions, and optimize marketing campaigns, offering a potential boost in productivity for businesses.
By automating repetitive tasks, businesses can focus more on strategic initiatives, which could lead to an increase in both customer retention and spending. In September, the company announced that it reached a definitive agreement to acquire Own Company, a prominent provider of data protection and management solutions. Own helps organizations ensure the security, availability, and compliance of their critical data while unlocking new opportunities for deeper insights.
As part of the agreement, Salesforce (NYSE:CRM) will acquire Own for approximately $1.9 billion in cash, adjusted for the value of roughly 10% of the shares that Salesforce currently owns. The transaction is expected to close in the fourth quarter of the company’s fiscal year 2025. Own, a Salesforce AppExchange partner since 2012 and a part of the Salesforce Ventures portfolio, has evolved beyond its initial focus on backup and recovery. It serves nearly 7,000 customers, helping them safeguard their most important data.
While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) 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 CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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