On Wednesday’s Mad Money episode, Jim Cramer took a deep dive into ten stocks, each worth over $1 billion, that have seen significant growth this year. While acknowledging that many of these stocks are speculative, he emphasized that they still hold potential as smart investments.
Cramer suggested that when looking back on this year, two trends will stand out: a steady rise in the S&P 500, and a series of moves that initially seemed almost magical, but were grounded in reality.
Cramer also reflected on the common investment approach of sticking with index funds, noting that it is a popular strategy because it requires minimal effort. But, according to him, simply parking your money in an index fund might not be the best way to maximize returns. Instead, he argued that investors should consider individual stocks with unique characteristics, many of which are speculative since they offer opportunities for much larger gains.
Cramer criticized the tendency among experts to dismiss individual stock investments beyond index funds, saying:
“Far too often we become snobs when we talk stocks. So many experts think that if you venture past the index, you could fall off some sort of intellectual cliff. It makes any gains null and void. It’s as if the huge swath of points you could have gained simply don’t count. But that, people, is nonsense.”
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During Wednesday’s episode, Cramer highlighted several stocks that have surged by over 200% this year, choosing to focus only on those with a market cap of more than $1 billion. He did clarify, however, that he was not endorsing these stocks, especially given how much they have already appreciated. Instead, his point was that speculative stocks, despite their volatility, have a valid place in an investment portfolio.
While they come with risks, a small stake in one of these stocks could outperform a much larger investment in an index fund. For Cramer, it is not about avoiding speculative stocks altogether, but recognizing their potential when balanced alongside more stable investments like index funds.
Cramer wrapped up by stressing the importance of considering these high-flying, speculative stocks and said:
“The bottom line: Let’s remember this list of frothy stocks and think of them the next time you’re about to ignore a stock for being too speculative because these names are often the epitome of speculating wisely, which can be the key for terrific long-term performance, of course, only when melded with index funds.”
Jim Cramer’s List of 10 Stocks That Have Rallied Over 200% This Year
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 13 and listed the stocks in the order that Cramer mentioned them.
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’s List of 10 Stocks That Have Rallied Over 200% This Year
10. NuScale Power Corporation (NYSE:SMR)
Cramer acknowledged that NuScale Power Corporation (NYSE:SMR) is spending a lot to develop nuclear reactors but went on to say that it has the possibility of raising money. Here’s what he had to say:
“Finally, the best performer: Viewers are crazy for nuclear power, you know that, you hear it all the time, but how about NuScale… This one’s on the come, so to speak because it’s losing a fortune, developing the nukes of the future, so-called small modular reactors. Yet it’s so beloved that I bet it can raise a ton of money once it lands a big hyperscaler contract. I’m clearly not alone here, the stock… is up 659% for the year.”
NuScale (NYSE:SMR) is a company specializing in the design and sale of modular light water reactor (LWMR) nuclear power plants. These reactors are intended for a variety of applications, including electricity generation, district heating, desalination, hydrogen production, and process heat. The company’s work aligns with broader national energy goals, as the White House recently outlined a roadmap aimed at significantly expanding nuclear energy production in the U.S.
By 2050, the administration plans to “at least” triple nuclear energy production, adding 200 gigawatts of new capacity. This ambitious expansion is seen as a means to create jobs, enhance energy reliability, and contribute to achieving a net-zero emissions economy by mid-century. In this context, SMRs, which the company specializes in, are expected to play a key role. The U.S. government has recognized the importance of advancing nuclear energy, with particular attention given to the development of small modular reactors.
The White House’s energy roadmap even specifically mentioned NuScale (NYSE:SMR) under the plan to expand nuclear energy. In particular, it noted how the U.S. Nuclear Regulatory Commission (NRC) is reforming its licensing and permitting processes to facilitate the deployment of new reactors. The company has been a significant part of this process, with its SMR design becoming the first to be certified by the NRC.
9. AppLovin Corporation (NASDAQ:APP)
Cramer highlighted AppLovin Corporation’s (NASDAQ:APP) recent earnings beat and mentioned the stock’s gains for the year during Mad Money’s episode.
“Not all these big speculative winners are money losers. Take AppLovin, which helps software developers create apps. While it’s been in business for 12 years, it still feels like AppLovin burst out of nowhere, doesn’t it? Reporting earnings of $434 million, analysts were expecting $319 million, that’s called a beat. It has mobile analytics and [an] in-house gaming division and it’s got an AI-powered acquisition platform that apparently everybody loves and that’s how you get more than 612% gain year to date. That’s right, 612% on a company that really isn’t all that speculative.”
AppLovin (NASDAQ:APP) provides software solutions that help advertisers optimize marketing and monetization, including tools for app measurement, analytics, and in-app bidding, while also operating a portfolio of free-to-play mobile games. Its business took a significant leap forward in 2023 with the launch of its Axon 2 advertising technology. Introduced in the second quarter of 2023, Axon 2 utilizes artificial intelligence to improve ad targeting and optimization, and its impact on the company has been notable.
As per its third-quarter earnings call, Axon 2’s self-learning capabilities, combined with ongoing updates from the company’s engineering team, have significantly improved the platform’s performance. Management highlighted that these advancements led to a notable step change in growth, with Axon 2 being the primary driver behind the company’s success in the quarter.
As a result of the improved technology, AppLovin’s (NASDAQ:APP) software platform revenue surged by 66%, reaching $835 million for the third quarter. In contrast, the company’s legacy apps business, which consists of its portfolio of gaming apps, saw more modest growth, with revenue increasing by just 1% to $363 million.
