We recently published a list of Was Jim Cramer’s Call Right on These 10 Stocks? In this article, we are going to take a look at where Warner Bros. Discovery, Inc. (NASDAQ:WBD) stands against other stocks that Jim Cramer discussed 12 months ago.
Back then, the show was heavily focused on the biggest media companies and how Jim Cramer ranked each one. He also discussed some of the biggest losers and winners of the post-pandemic stock market.
In the most recent episode of Mad Money, Jim Cramer took a closer look at the current status of the Magnificent Seven stocks, offering insight into both their market positioning and how the White House’s stance seems to be shifting.
“First, I can’t be sure that Trump has changed, but I do believe that he’s never lost sight of the markets and he watches the business channels.”
READ ALSO: Was Jim Cramer Right About These 13 Stocks? And Did Jim Cramer Nail or Miss These 14 Stocks?
Cramer emphasized that his analysis is not political, rather, it is a “clear-eyed” assessment of what the president aims to achieve. According to Cramer, Trump is pushing for more jobs and manufacturing within the U.S., even if it means sacrificing access to cheap goods from overseas. Turning his attention to the Magnificent Seven stocks, Cramer said:
“Everybody knows the Magnificent Seven is not so magnificent anymore… But as I said over and over again, you simply can’t count these stocks out.”
He explained that these stocks still hold significant value despite their significant drops from their peak highs. For Cramer, these companies are not to be dismissed lightly. He mentioned that six of them are part of his Charitable Trust, making them especially relevant to his analysis. He noted that some serious damage had been done to the group.
As Cramer continued his commentary, he pointed out that analyst sentiment toward the Magnificent Seven has become more positive after a year of skepticism. However, he highlighted that only Amazon and Nvidia have truly favorable setups at the moment. For the others, it remains to be seen what the future holds. Regardless of their uncertain outlooks, Cramer noted one important factor common to all these companies: as their stock prices fall, they actually become more affordable.
“Their stocks actually truly do get cheaper as they go lower, and that’s more than I can say for many others that have held up well during this exceedingly difficult period.”
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 April 4, 2024. We then calculated their performance from April 4th, 2024, market close to March 26th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
Please note that this article mentions Jim Cramer’s previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out.
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).
Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 64
Warner Bros. Discovery, Inc. (NASDAQ:WBD), the media conglomerate behind CNN, HBO, and Discovery Channel, was flagged by Cramer in that episode for its weak financials and poor earnings. He ranked it at the bottom of his media stock list back then:
“You know what’s not a good solid option though, sadly? Warner Brothers Discovery. I put this stock in third place five months ago purely out of respect, not fourth place because of the long-term track record of CEO David Zaslav and we care about long-term on the show. But it’s getting harder to see how he’s going to pull this rabbit out of a hat. Remember, all the old line media companies are up against the same set of challenges here but Warner needs to navigate these challenges with the worst balance sheet in the industry by far actually. […]
In short, it’s a Highwire act. The company needs to consistently put up strong numbers to outrun its debt maturities and interest payments. Sadly the most recent quarter did not have strong numbers with Warner Brothers missing expectations pretty much across the board. Best I can say about this one is that June 2 seems like a major success at this point. However, I can’t go positive on the stock until the balance sheet gets much more clean. And you have to respect that we do balance sheet analysis here and this is just not good. […]
Then at the bottom of the rankings I’m going to swap Paramount and Warner Brothers Discovery to Paramount third. Warner Brothers got to go dead last. They’re both in not great shape but at least Paramount has takeover chatter; Warner Brothers doesn’t seem to have anything”
Warner Bros. Discovery, Inc. (NASDAQ:WBD) has risen by 30.69%, showing a surprising rebound despite Cramer’s skepticism.
Jim Cramer’s latest comments on WBD came on the 5th of March, where he wondered whether the firm’s $20 billion debt pay down is one of the reasons behind the stock’s performance. He has also cited some optimism while talking about the CEO:
“And by the way, David as you’ve been not talking about, the resurrection of Warner Brothers. WBD. Look at that. Why did that . . .they liked the debt paydown?
“Look, uh stay the course. I think that David Zaslav would tell you that buried within that company is the number one studio in the world.”
Overall, WBD ranks 7th on our list of stocks that Jim Cramer discussed 12 months ago. While we acknowledge the potential of WBD 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 time frame. If you are looking for an AI stock that is more promising than WBD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
