This article presents an overview of the Jim Cramer’s 2024 Portfolio: 5 Latest Stock Picks. For a detailed overview of such stocks, read our article, Jim Cramer’s 2024 Portfolio: 10 Latest Stock Picks.
5. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Investors: 75
Jim Cramer is highly bullish on data center company Vertiv Holdings Co (NYSE:VRT). In a latest program Cramer said that Vertiv Holdings Co (NYSE:VRT) is “one of the great performers of our time.” Cramer said that last year the stock was one of the best performers. Vertiv Holdings Co (NYSE:VRT) shares gained about 277% over the past one year.
Vertiv Holdings Co (NYSE:VRT) on February 21 posted fourth quarter results. Adjusted EPS in the period came in at $0.56, beating estimates by $0.03. Revenue in the quarter jumped 12.7% year over year to $1.87 billion, missing estimates by $0.03.
ClearBridge Select Strategy made the following comment about Vertiv Holdings Co (NYSE:VRT) in its Q3 2023 investor letter:
“Performance was boosted in the quarter by the Strategy’s more economically-sensitive holdings among steady compounders and evolving opportunities. Vertiv Holdings Co (NYSE:VRT), a leader in power and thermal management for data centers, saw its shares rerate on strong data center demand and enthusiasm for AI-related technology. The company’s new management has kept cost inflation under control while maintaining strong orders and backlog, resulting in improved margins and its best free cash flow generation to date.”
4. Palo Alto Networks Inc (NASDAQ:PANW)
Number of Hedge Fund Investors: 77
Palo Alto Networks Inc (NASDAQ:PANW) shares recently slipped after Palo Alto Networks Inc (NASDAQ:PANW) posted Q4 results and gave a weak full-year revenue and billings guidance. Palo Alto Networks Inc (NASDAQ:PANW) now expects billings for fiscal 2025 between $10.1 billion and $10.2 billion, down from a previous range of $10.7 billion to $10.8 billion.
But Jim Cramer believes the latest dip in Palo Alto Networks Inc (NASDAQ:PANW) shares is a buying opportunity. Cramer said investors should buy the ‘pure panic’ around Palo Alto Networks Inc’s (NASDAQ:PANW) decline after its earnings.
TimesSquare Capital U.S. Mid Cap Growth Strategy made the following comment about Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q3 2023 investor letter:
“Across the Information Technology universe, we seek companies possessing differentiated capabilities, products, and services. Palo Alto Networks, Inc. (NASDAQ:PANW) supplies network and cloud-based security solutions to enterprises, service providers, and government entities. The latest quarter was mixed with the company falling shy versus the Street on billings, in line for revenues, and outpacing earnings. Palo Alto’s updated guidance was materially ahead of lowered Street expectations. Nevertheless, its shares pulled back by -8%.”
3. Walt Disney Co (NYSE:DIS)
Number of Hedge Fund Investors: 89
Jim Cramer remains bullish on Walt Disney Co (NYSE:DIS) despite the challenges and tough competition Walt Disney Co (NYSE:DIS) is facing.
Recently, Cramer said about Disney:
“We own the stock for the charitable trust, and stay tuned.”
Madison Sustainable Equity Fund made the following comment about The Walt Disney Company (NYSE:DIS) in its Q3 2023 investor letter:
“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS). The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”
2. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 173
Cramer continues to remain a raging bull when it comes to NVIDIA Corp (NASDAQ:NVDA). Here are some of his recent tweets which show how aggressively bullish he is on the chip maker which yet again tarnished Wall Street estimates with its fourth quarter results.
Jim Cramer tweeted after Q4 earnings of NVIDIA Corp (NASDAQ:NVDA):
“Oh and if you bet against Nvidia please don’t forget to send me an invitation to your funeral….”
Before Nvidia’s earnings Cramer tweeted, with a reference to NVIDIA Corp (NASDAQ:NVDA) CEO Jensen Huang:
“Don’t bet against Taylor or Jensen.”
Polen Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:
“Apple and NVIDIA Corporation (NASDAQ:NVDA) alone drove over 1,100 basis points of the Russell 1000 Growth Index’s 42% return, so not owning them was a meaningful headwind to our relative return in 2023. NVIDIA shares rocketed higher by well over 200% in 2023 although they slightly underperformed our Portfolio and the Russell 1000 Growth in the fourth quarter. Generative AI has been a huge boon for NVIDIA as the use of LLMs like ChatGPT and others requires tremendous processing power that, today, is mostly provided by NVIDIA’s GPUs. All large cloud service providers, AI factories, and many large consumer internet companies are laying the foundation for generative AI by deploying NVIDIA GPUs and other parallel processing chips to be able to do large scale generative AI either for internal use (i.e., Meta) or as a service for others (i.e., AI factories) or both (cloud service providers such as Amazon, Microsoft, and Google).
Given many of NVIDIA’s customers or its end customers are still very much in the experimentation phase with generative AI, it is unclear how sustainable the current demand for GPUs truly is. At the same time, it is known that NVIDIA has historically been highly cyclical. By the end of 2024, we believe NVIDIA will already account for roughly half the market for datacenter chips, servers, and networking equipment, which is unprecedented. Even though the valuation at 25x forward earnings doesn’t look very demanding at first glance, it assumes NVIDIA will own virtually the entire datacenter chip market in just the next few years and will sustain year-on-year growth despite being a cyclical business that is currently experiencing much higher new peaks.
We believe NVIDIA is a highly advantaged business, but we also believe the long-term growth outcomes are currently too variable, and the expectations built into the company’s $1.2 trillion valuation as of this writing assume the most optimistic of those scenarios.”
1. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 293
In his “Mad Dash” segment on CNBC last month, Cramer said that Amazon.com Inc (NASDAQ:AMZN) does not have any strong competitor. When asked about the competition AWS is getting from other companies, Cramer said Amazon.com Inc (NASDAQ:AMZN) has the “least expensive” and “most robust” Cloud offerings.
Here’s what Cramer tweeted on February 21 about Amazon.com Inc (NASDAQ:AMZN):
“Amazon in, Walgreens out; worst Dow stock EVER. But not a lot of money indexed to Dow so don’t go crazy.”
NZS Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:
“IT remains an important area, however, and we made some adjustments. We sold Amazon.com, Inc. (NASDAQ:AMZN), which had been a large position, to focus on more favorable stocks with similar opportunities. Shopify can thrive in e-commerce while Microsoft’s cloud offering is encroaching on Amazon’s opportunity.”
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