On Friday, Jim Cramer, the host of Mad Money, discussed the recent struggles in the market and how the downturn in momentum stocks has significantly affected aggressive growth investors. He pointed out the complexities of the market on Friday, explaining how things took a drastic turn for the worse. According to Cramer, the market can be divided into two distinct categories: one driven by momentum and the other focused on traditional growth.
“Alright, we got two markets right now. One is all about momentum. The other is all about old-fashioned growth. Momentum is nasty right now. Classic growth, well, it is cruising.”
READ ALSO Jim Cramer’s Game Plan: 17 Stocks in Focus and Jim Cramer Discussed These 11 Stocks Recently
Despite the numbers, Cramer noted that these dynamics were not immediately obvious when you look at the broader averages, with the Dow dropping 749 points, the S&P falling 1.71%, and the Nasdaq plummeting by 2.2% on Friday. He said that investors heavily invested in momentum stocks are finding it increasingly difficult like they are struggling to breathe after the “oxygen” was taken away.
Cramer said that on the other hand, those with investments in established growth stocks and diversified portfolios are faring much better. He mentioned that these stocks have performed well for the first time in quite a while, offering a bit of relief for those holding them. Reflecting on the sharp downturn in the market, Cramer explained that the situation can be traced back to several concerning economic indicators. He added:
“This week, we got a series of readings, key numbers for home sales, consumer sentiment that show true softness, and a sense that maybe things are starting to go off the rails in the economy. Well, that’s incredible given the surprising head of steam we had going into 2025.”
Jim Cramer Talked About These 12 Stocks Recently
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 21. We listed the stocks in ascending order of their hedge fund sentiment 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 Talked About These 12 Stocks Recently
12. Innodata Inc. (NASDAQ:INOD)
Number of Hedge Fund Holders: 15
Innodata Inc. (NASDAQ:INOD) is a data engineering company offering services in AI data preparation, data transformation, and model deployment, alongside platforms for transforming medical records and supporting marketing communications and public relations professionals in targeting and analyzing global media. Calling it a “hero stock”, Cramer said:
“What a stock. I mean, yeah, you were right. You’re right. It’s a high multiple stock and it didn’t get hit today. How about that? That is what I call a hero stock.”
Back in December 2024, Cramer noted how expensive Innodata (NASDAQ:INOD) was as he said, “This is now a very expensive stock. And I just think if you take a little off the table, you can always get back in.”
11. Whirlpool Corporation (NYSE:WHR)
Number of Hedge Fund Holders: 25
Cramer lacked enthusiasm when he was asked about Whirlpool Corporation (NYSE:WHR) and suggested: “move on”.
“I didn’t like that quarter at all and that stock is very much in the penalty box, has had a little bit of bounce and you know what I say is move on.”
Whirlpool (NYSE:WHR) designs, manufactures, and sells a range of home appliances, including refrigerators, laundry machines, cooking appliances, dishwashers, and small domestic appliances, along with related accessories. Cramer seems to have maintained his bearish stance on the company as evidenced by the comment he made in September 2024 when he said, “Too inconsistent. They don’t get my buy with that level of inconsistency.”
Hedge Fund Resource Center