Jim Cramer, the host of Mad Money, recently discussed the current state of the market, touching on various factors including upcoming earnings reports and new inflation data. Reflecting on the November jobs report, which came in largely as expected, Cramer noted:
“After basically in line November jobs report, better than October, but with the unemployment rate still ticking up to 4.2%, I don’t think that does much to change the Federal Reserve’s rate cut calculus.”
On Friday, Cramer remarked that the market had a relatively calm session, with the Dow dipping by 123 points, the S&P gaining 0.25%, and the NASDAQ climbing 0.81%. He emphasized that nothing about Friday’s action surprised him, and he maintained his expectation for a 25-basis point rate cut later this month. Cramer added that he still anticipates the Fed will go ahead with this move despite the recent data.
READ ALSO Jim Cramer Discussed 10 Stocks That Can Do Well in December and Jim Cramer’s Lightning Round: 7 Stocks to Watch
Looking ahead, Cramer highlighted Wednesday’s upcoming release of the Consumer Price Index (CPI), which he noted could play a crucial role in the Fed’s decision-making. With the Federal Reserve meeting in just two weeks, he cautioned that there will be chatter about the Fed’s decision to cut rates.
“All of us still see high prices when we go to the supermarket, right? So we shouldn’t be surprised if the CPI comes in hot. At that point, why should the Fed really bother to cut? Be ready for that kind of chatter. Don’t worry, they’ll still cut.”
The following day, Thursday, will bring the release of the Producer Price Index (PPI), which Cramer pointed out is another important inflation measure. He again expressed concern that inflation needs to cool down in order to avoid complications. There has been ongoing speculation about whether the Fed could hesitate on rate cuts, which could derail the market’s expectations. Cramer remarked that if inflation remains elevated, the Fed might have no choice but to delay or even shelve rate cuts for next year.
“Bottom line: Look, I’m trying to get my arms around a market that takes up all sorts of crypto, lots of unprofitable companies, never too great a sign for those who want the Fed to cut repeatedly,” he said. “I want you to keep that in mind so you won’t be surprised if we get some overheated inflation numbers next week and the market gives up some of these extraordinary gains.”
Jim Cramer’s Game Plan This Week: 10 Stocks to Watch
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on December 6. 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’s Game Plan This Week: 10 Stocks to Watch
10. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 16
Cramer referred to GameStop Corp. (NYSE:GME) as a “cult stock,” highlighting:
“After the close, boy here comes complications, Tuesday morning, GameStop, right? They report. Well, speak of the devil, GameStop will most likely deliver numbers that please those who want to be pleased. No, that is not circular reasoning, people… We have stocks like SoundHound AI and Hut 8 Corp. where there’s no real news, but they’re just real moves, okay? GameStop seems to have a similar percolation going… That’s right, all week, I’ve been talking about how I’m beginning to see some signs of excess that do make me uncomfortable. I think the reaction to GameStop, both before and after will tell us whether we need to know about how excessive things have really become. I can’t tell you to sell it. You’ll blame me if it soars on no earnings, but I can’t tell you to buy it either because I don’t have any legitimate reason whatsoever to do so. It’s a cult stock and this is a market where people seem eager to drink the Kool-Aid. Like I said, tough moment if you wanna be a rigorous buyer of inexpensive stocks that belong to great companies.”
GameStop (NYSE:GME) is a specialty retailer offering new and pre-owned gaming products, accessories, software, collectibles, and digital content, along with involvement in the digital asset wallet and NFT marketplace. It reported a 31% decline in revenue in the second quarter compared to the previous year, amounting to $798 million. Despite the drop in sales, the company posted an unexpected profit, with a net income of $14.8 million, a turnaround from a loss of $2.8 million in the same period the year before.
GameStop (NYSE:GME) continues to see its stock influenced by the meme-stock trading community, a phenomenon that has significantly impacted its market performance. Recently, its shares experienced a surge following a cryptic post by Keith Gill, a notable figure in the meme-stock community known as “Roaring Kitty” on YouTube and “DeepF***ingValue” on Reddit’s WallStreetBets. Gill was central to the dramatic rise of GameStop stock in January 2021, when it skyrocketed by 1,600% during the “Reddit rally.”
9. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 27
Cramer expressed caution about endorsing C3.ai, Inc. (NYSE:AI), given its lack of profitability despite rising shares, but noted that in the current market, it’s risky to bet against any company associated with AI.
“Now you know I’ve become hesitant to endorse money-losing companies with stocks that are extremely overvalued. After the close we hear from a company called C3.ai, the profitless enterprise software company with a stock that’s shot up more than 50% in the last three weeks, including 8% just today. Can it keep roaring? In a rational market, no, but in this market, well, you can’t afford to bet against any company with AI in its name.”
C3.ai (NYSE:AI) is an enterprise AI software company offering solutions like the C3 AI platform, C3 AI CRM Suite, and C3 Generative AI. In the fiscal 2025 first quarter, it posted a 21% year-over-year increase in revenue. However, the company reported an adjusted loss per share of $0.05. Looking ahead, the company expects a wider adjusted operating loss for the second quarter of fiscal 2025, with a forecasted range of $26.7 million to $34.7 million, compared to a smaller loss in the first quarter.
It is noteworthy that the company has strategic partnerships with Google Cloud, AWS, Microsoft Azure, and others. These alliances have helped drive business growth, as evidenced by the 155% increase in customer agreements through these partners during the first quarter of fiscal 2025, with 51 deals closed. In November, C3.ai (NYSE:AI) and Microsoft announced a strategic alliance aimed at accelerating the adoption of C3.ai’s Enterprise AI platform on Microsoft’s Azure cloud infrastructure, further strengthening their collaboration.
