Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
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Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Jim Cramer’s Latest Game Plan: 20 Stocks to Watch
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For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
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Jim Cramer’s Latest Game Plan: 20 Stocks to Watch
20. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 39
Reddit, Inc. (NYSE:RDDT) is set to report its third-quarter earnings report on October 29. Commenting on the company, Cramer said:
“By the way, I also think that both Reddit and PayPal will do terrifically. All three are hot stocks. I bet all three will remain that way.”
Reddit (NYSE:RDDT) operates a vibrant platform designed for the creation and engagement of digital communities focused on various interests, enabling users to participate in discussions and share content. Cramer has previously commented that CEO Steve Huffman “put up some really good numbers.” He said that Huffman has “a great long-term model”.
Huffman recently emphasized the platform’s potential as a valuable resource for artificial intelligence development, suggesting that Reddit’s diverse content serves as some of the best training data available. As the company navigates its role in the evolving world of AI, Huffman noted the increasing significance of this data in the competitive environment often referred to as the AI “arms race.”
During his remarks at The Wall Street Journal’s Tech Live conference in October, Huffman addressed the implications of AI on internet search and how Reddit’s (NYSE:RDDT) unique position will allow it to shine amidst concerns about low-quality AI-generated content, which he referred to as “AI slop.” He reiterated his belief that Reddit represents “the most human place on Earth,” positioning the platform as a source of genuine intelligence that feeds into artificial intelligence models. Huffman argued that the essence of AI relies on actual human intelligence, which is abundantly present on Reddit, reinforcing the platform’s importance in the AI conversation.
19. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 47
Cramer expressed a wish to see the absence of Ford Motor Company’s (NYSE:F) warranty issues and lack of loss in EVs.
“Ford Motor… I very much want to see them have a clean quarter with no warranty issues and not too much loss on electric vehicles, although that may be too much to ask for.”
Ford Motor (NYSE:F) is engaged in the development, production, and servicing of a lineup of vehicles, including trucks, commercial cars, vans, sport utility vehicles, and Lincoln luxury models. On October 28, it reported a decline in profit for the third quarter, primarily due to ongoing challenges in the automotive market, resulting in a drop in its shares.
For the third quarter, the company’s net income stood at $900 million, or 22 cents per share, down from $1.2 billion, or 30 cents per share, the previous year. The company’s revenue for this period was reported at $46.2 billion. In its latest earnings call, the company revised its forecast for full-year adjusted earnings to approximately $10 billion, down from an earlier estimate of between $10 billion and $12 billion.
Ford Motor’s (NYSE:F) management indicated that two significant factors are hindering the potential for record adjusted EBIT this year: unexpectedly high warranty costs and inflationary pressures affecting its joint venture, Ford Otosan, in Turkey. Furthermore, the company’s “Model e” electric vehicle division recorded losses amounting to $1.22 billion during the third quarter, highlighting the challenges faced in the transition to electric mobility.
18. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders: 48
While highlighting that cruise stocks like Royal Caribbean Cruises Ltd. (NYSE:RCL) have been performing well, he also said that RCL’s stock is hot, in addition to his other two hot stocks.
“The cruise stocks… they’ve probably been the strongest, most reliable names in the entire, entire consumer space. Royal Caribbean is the number one.”
Royal Caribbean (NYSE:RCL) is a global cruise operator, overseeing popular brands like Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. For its second quarter, the company reported another “beat and raise” performance, leading to an increase in its full-year projections. For the third quarter, adjusted EPS is expected to be between $4.90 and $5.
Due to strong demand for vacation offerings, Royal Caribbean (NYSE:RCL) raised its 2024 adjusted EPS guidance to a range of $11.35 to $11.45. This marks a significant growth of 68% compared to the previous year. The company’s 2024 booking position is solid across all products and markets.
It continues to exceed last year’s figures in both rate and volume. Additionally, the Caribbean represents about 55% of its capacity for the year and 42% for the third quarter. This segment is booked ahead in both rate and volume. The strong yield growth is driven by new ships and higher prices on existing vessels, supported by private destinations.
17. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 49
Cramer praised Caterpillar Inc.’s (NYSE:CAT) CEO and said that the upcoming quarter can be quite strong.
“When we walked around the floating platform in the Gulf of Mexico yesterday, I peeked at all the nameplates on every machine I saw, and the predominant one, it was Caterpillar, which makes solar turbines… that would power a great deal of activity on the platform. Chevron CEO Mike Wirth reminded me that Jim Umpleby, the CEO of Caterpillar, actually came from that division. CAT reports in the morning, I think it could be very very strong. I just don’t know if it’ll be strong enough to move what has been an incredibly hot stock. If they look at that runup, I wouldn’t be surprised if it actually gave up some of that. It’s up 30% for the year.”
Caterpillar (NYSE:CAT) is a leading manufacturer and seller of a wide range of equipment, including construction and mining machinery, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. According to the company’s second earnings call, management had earlier projected that sales and revenues would remain broadly similar throughout the year. However, for the first half of the year, the top-line results fell slightly short of expectations, ending 2% lower than the previous year.
Looking ahead, Caterpillar (NYSE:CAT) forecasts a similar decline in sales and revenues during the second half compared to the prior year, influenced in part by updated assumptions regarding dealer inventory, particularly in the Resource Industries segment. Despite these challenges, management indicated that the adjusted operating profit margin for 2024 is expected to exceed the upper end of the previously set target range. Additionally, full-year adjusted operating profit is now forecasted to be higher than initially anticipated.
16. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 61
Cramer talked about Bristol-Myers Squibb Company (NYSE:BMY) in a post-cutting landscape and in relation to the employment report coming out on Friday. Here’s what he said:
“We get two drug stocks on Thursday too. We get Merck and Bristol Myers. This group has been castigated as the wrong place to be when the Fed’s cutting rates, the hedge fund playbook says that. I think both stocks are too low but I also know that if we get a weak employment on Friday, Merck and Bristol Myers will be two stocks that you should not have bought. So put that in a little retrospect.”
Bristol-Myers (NYSE:BMY) stands as a prominent company in the biopharmaceutical sector, focused on addressing a range of diseases across various therapeutic areas, including hematology, oncology, cardiovascular health, immunology, fibrotic diseases, and neuroscience. As the company looks toward the future, it faces challenges stemming from the impending loss of patent exclusivity for two of its key growth drivers: Eliquis, an anticoagulant, and Opdivo, a cancer treatment.
Both products are set to lose exclusivity by the end of the decade, prompting the company to devise a strategy that includes the development of a subcutaneous formulation of Opdivo. On October 25, Citi analyst Geoff Meacham downgraded Bristol-Myers (NYSE:BMY) to Neutral from Buy with a price target of $55, down from $75.
The downgrade came because of the anticipated growth headwinds associated with the loss of exclusivity for Eliquis and Opdivo. The company is expected to undergo a transitional period from 2025 to 2027, which could introduce volatility into its performance. Despite these challenges, Citi maintains a positive outlook on its growth portfolio, viewing the company more as a narrative to watch in 2027 and beyond.
15. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 64
Cramer mentioned Chevron Corporation’s (NYSE:CVX) dividends, buybacks, and the stock’s lagging performance.
“Finally, we hear from two biggest, biggest oil companies, Chevron and Exxon… We just got back from a Chevron platform in the Gulf of Mexico. I got to be impressed by the way. Chevron’s been able to return a huge amount of capital in dividends and buybacks. Yet, you know what? It’s still a laggard. It’s the worst performer in the group… I think people should switch their allegiance and like Chevron, there’s Mike Wirth who knows what he’s doing.”
Chevron (NYSE:CVX) is a prominent player in the energy sector, primarily engaged in the exploration, production, and transportation of crude oil and natural gas. In the second quarter, the company returned $6 billion to shareholders, which included $3 billion in dividends and $3 billion in share repurchases. It marked the ninth consecutive quarter in which the company has distributed over $5 billion in cash to shareholders.
Over the past two years, the company has returned more than $50 billion in cash to its shareholders, showing a consistent approach to capital management. On September 30, Chevron (NYSE:CVX) announced that the Federal Trade Commission (FTC) had completed its antitrust review concerning the merger with Hess Corporation. As part of the agreement to finalize this merger, it was decided that Hess CEO John Hess would not join the Chevron Board of Directors.
14. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 67
Cramer discussed the increasing E.Coli cases and any possible effects on McDonald’s Corporation (NYSE:MCD). Here’s what he had to say:
“Tuesday: We’re going to hear from McDonald’s. Now, listen to this, we’re probably going to get a full airing of the E. coli situation, which has taken a turn for the worse. CDC is saying the outbreak has grown, there are 26 new cases. It’s too soon to tell how much damage’s being done to the brand of McDonald’s. Now look, I think there’ll be a short-term overhang. But remember, McDonald’s has been on fire ever since they announced that $5 meal deal when a lot of customers really got more excited. Wall Street can’t stay away from the stock. We’ll know whether there’s going to be a moth to the flame situation or whether it’s just going to be solid for the rest of the year.”
McDonald’s (NYSE:MCD) is a globally recognized brand that operates and franchises restaurants, providing a wide range of food and beverages. The company employs various operational structures, including conventional franchises, developmental licenses, and affiliates, allowing it to maintain a significant presence. Recently, the company faced a challenging situation when an E. coli outbreak linked to its Quarter Pounder burgers raised concerns among investors.
Reports from the Centers for Disease Control and Prevention (CDC) indicated that at least 49 individuals fell ill across ten states, prompting a swift sell-off of its stock as anxiety over the brand’s safety grew. Fortunately, after conducting thorough testing, the company was able to confirm that its beef patties were not the source of the E. coli outbreak.
On October 22, Barclays raised the price target on McDonald’s (NYSE:MCD) to $325 from $300 and maintained an Overweight rating, as part of a Q3 earnings preview for the restaurant group. According to the firm, while comparable sales initially eased at the beginning of the third quarter, they later stabilized at lower levels.
Despite vulnerabilities posed by lower-income consumers, quick-service restaurants have effectively responded to market conditions. Furthermore, the easing of inflation and pricing pressures has contributed to a more favorable outlook for the industry.
13. DoorDash, Inc. (NASDAQ:DASH)
Number of Hedge Fund Holders: 67
Cramer predicts that DoorDash, Inc. (NASDAQ:DASH) will post a strong third-quarter earnings report on October 30.
“… Doordash reports. Yeah, I think it’ll be very strong and should shed some more light on consumers. Then all sorts of traders will start to extrapolate from the results to the Fed’s next move. Time-honored ‘dog bites man’ stuff. Don’t let it get to you.”
DoorDash (NASDAQ:DASH) operates a global commerce platform that connects merchants, consumers, and independent contractors, offering services such as order fulfillment, payment processing, and customer support through its DoorDash Marketplace and Wolt Marketplace, along with various membership products and digital solutions for merchants. The company has also expanded its services into grocery and retail markets, positioning itself for substantial future growth.
With over 100,000 retailers on its platform, the company features well-known brands such as Victoria’s Secret, JD Sports, and Camping World. A significant partnership announced in May with Ulta Beauty, the largest beauty retailer in the United States, aims to further diversify offerings and enhance customer engagement.
On October 24, Mizuho analyst James Lee raised the price target on DoorDash (NASDAQ:DASH) to $173 from $162 and kept an Outperform rating. According to the analyst, demand for gig economy services remains strong amidst easing inflation and favorable unit economics.
Industry insights suggest that leading companies in ride-sharing and food delivery are expected to capture additional market share and benefit from operational efficiencies. With a focus on improving marketing efforts, DoorDash aims to build volume and drive growth in the latter half of the year, making it a top pick for the firm.
12. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 68
Chipotle Mexican Grill, Inc. (NYSE:CMG) will announce its third-quarter earnings results on October 29. Cramer thinks that the company will do fine despite its CEO leaving.
“Chipotle reports too. Without Brian Niccol’s move in to try to fix Starbucks, I think Chipotle will be fine. I don’t know if it can break out from the 50s, stock feels trapped, doesn’t it? But the announcement of a permanent CEO could work some wonders here.”
Chipotle Mexican Grill (NYSE:CMG) operates a chain of restaurants that specialize in a variety of Mexican-inspired dishes, including burritos, burrito bowls, quesadillas, tacos, and salads. With over 3,400 locations globally, the company has established a significant presence in the fast-casual dining segment.
Following a leadership transition, Scott Boatwright has been appointed as the interim CEO. Having been with the company for seven years as chief operating officer, Boatwright is expected to maintain continuity in the company’s long-term growth strategies. The company aims for an annual growth rate of 8% to 10% moving forward.
On October 2, Chipotle Mexican Grill (NYSE:CMG) continued its international expansion by opening its first restaurant in Dubai, collaborating with Alshaya Group, a prominent international franchise operator. The company’s existing international footprint includes 47 locations in Canada, 20 in the United Kingdom, six in France, and two in Germany.
In North America, the company operates more than 3,500 restaurants and plans to ensure that at least 80% of its new locations feature a Chipotlane, a drive-thru pickup lane designed to enhance customer convenience. For 2024, it has set a goal to open between 285 and 315 new restaurants, with an ambitious long-term target of reaching 7,000 locations in North America.
11. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 87
Cramer said, “I also think that both Reddit and PayPal will do terrifically.” He added that PayPal Holdings, Inc.’s (NASDAQ:PYPL) stock is hot and will remain that way.
PayPal (NASDAQ:PYPL) is a leading technology platform that facilitates digital payments for both merchants and consumers. According to analysts led by Dan Dolev, over the past 12 months, its total branded payment volume has increased by 6%, matching or surpassing the growth rates of nine out of the 14 largest users of its branded checkout service.
This growth is particularly significant as branded checkout generates considerably higher profits compared to unbranded card processing, which has become the predominant method in its overall payment processing activities.
The company experienced a sequential increase in the number of active accounts during the first and second quarters, indicating a positive trend in user engagement. While it did not offer a full-year revenue forecast, it forecasts that adjusted EPS will rise by “low to mid-teens” percentages from the $3.83 reported in 2023.
PayPal (NASDAQ:PYPL) is focused on advancing its Fastlane product for businesses and expanding the PayPal Complete Payments Platform over the upcoming year. Additionally, there are plans to grow its advertising division. With access to a wealth of consumer spending data, the company aims to better connect customers with merchants to drive sales conversions.
10. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 92
Cramer mentioned the love surrounding Exxon Mobil Corporation’s (NYSE:XOM) stock presently and the kerfuffle around Chevron’s acquisition of Hess Corporation. Here’s what he said:
“Finally, we hear from two biggest, biggest oil companies, Chevron and Exxon… If not for that battle with Exxon for the Hess acquisition, I think the stock could be quite a bit higher because of its great conventional flow. Exxon doesn’t have the earnings power that Chevron has, but it’s got a lot more love right now.”
Exxon (NYSE:XOM) is engaged in the exploration and production of crude oil and natural gas. Currently, the company is involved in a significant legal dispute concerning Chevron’s proposed $53 billion acquisition of Hess, centered around whether the merger would constitute a change of control over Hess’s valuable subsidiary in Guyana, an area critical to both companies due to its substantial oil reserves.
The company contends that the right of first refusal was triggered by the potential change of control. Although the U.S. Federal Trade Commission recently permitted Chevron’s purchase of Hess, Exxon’s challenge to the merger is expected to unfold over the coming months, with a three-judge arbitration panel set to review the case in May.
In the most recent quarter, Exxon (NYSE:XOM) reported positive financial results stemming from its merger with Pioneer, which contributed $500 million in earnings. The company also highlighted a strong financial performance, with free cash flow amounting to $4.9 billion in the second quarter of 2024, bringing the total free cash flow for the first half of the year to $15 billion.
9. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 96
Merck & Co., Inc. (NYSE:MRK) will release its third-quarter earnings on October 31. Calling the stock too low, Cramer said:
“We get two drug stocks on Thursday too. We get Merck and Bristol Myers. This group has been castigated as the wrong place to be when the Fed’s cutting rates, the hedge fund playbook says that. I think both stocks are too low but I also know that if we get a weak employment on Friday, Merck and Bristol Myers will be two stocks that you should not have bought. So put that in a little retrospect.”
Merck (NYSE:MRK) is a prominent global healthcare company engaged in the development and marketing of a diverse range of pharmaceutical products aimed at improving human health, including treatments in areas such as oncology, vaccines, and various therapeutic fields. Among its portfolio, Keytruda stands out as the most significant product.
This cancer treatment has received approval for numerous indications and became the best-selling medicine globally in 2023, generating $25 billion in sales, which represented approximately 41.5% of the company’s total revenue. However, the U.S. patent exclusivity for Keytruda is set to expire in 2028, a critical date for the company. In response to this impending loss, the company is actively working on a subcutaneous formulation of Keytruda, targeting an estimated 50% of the patient population projected for the drug by 2028.
Furthermore, on October 23, Merck (NYSE:MRK) announced the acquisition of Modifi Biosciences for up to $1.3 billion. Modifi Biosciences is recognized for its pioneering work in the field of direct DNA modification, particularly in the development of cancer therapeutics.
8. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 96
Referring to Booking Holdings Inc.’s (NASDAQ:BKNG) consistently strong quarterly reports, Cramer highlighted the incredulous speculation about traveling trends among consumers.
“Here’s one that makes a big splash every time. It’s called Booking Holdings. Yes, the old Priceline. It’s been ages since this company didn’t have a smashing quarter. Then everybody speculates about whether the consumer is still traveling.”
Booking Holdings (NASDAQ:BKNG) is a leading provider of online and traditional travel services, including restaurant reservations and related offerings. Its second-quarter earnings surpassed analyst expectations in key areas as total revenue reached $5.86 billion, a year-over-year growth of 7.3%. Additionally, net income increased by 18%, indicating solid performance in a competitive market.
Management offered a cautious outlook for the remainder of the year, anticipating third-quarter room night growth to fall between 3% and 5%, a decrease from the 7.1% growth experienced in the second quarter and significantly lower than the 14.9% growth reported during the same period last year.
On October 24, Oppenheimer analyst Jed Kelly raised the price target on Booking Holdings (NASDAQ:BKNG) to $5,000 from $4,200 and kept an Outperform rating. While the recent increase in share prices, along with geopolitical and electoral uncertainties, presents challenges for upcoming earnings, Oppenheimer continues to view Booking as a favorable long-term investment. The firm noted that sentiment around the company is positive within the online travel sector, with increased confidence that profit margins will expand in a stabilizing travel environment by 2025.
7. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 100
Regarding Eli Lilly and Company (NYSE:LLY), Cramer previously stated that its peers cannot compete with the amount of firepower it has. This is what he said in the most recent episode:
“Now Wednesday morning, Eli Lilly, one of our best picks for the Charitable Trust… And that’s had quite a run thanks to the GLP-1 weight loss drugs. This morning, Stifel brokerage house put out a note that talks about the impact of these drugs on the food stocks. I think, pretty much everyone else, all the analysts and the people in the food industry, these guys say it’s going to impact the food companies negatively. Well, that means it’s going to impact Lilly positively.”
Eli Lilly (NYSE:LLY) is a leading global pharmaceutical company focused on transforming diabetes care and addressing obesity, along with its serious long-term effects. A significant addition to its portfolio is Zepbound, a novel treatment for obesity that activates specific hormone receptors, representing a fresh approach in the therapeutic landscape. Mounjaro, another key product, is the first approved medication for type 2 diabetes that targets these same receptors, utilizing tirzepatide as its active ingredient.
Recently, Reuters reported that Eli Lilly (NYSE:LLY) plans to launch Mounjaro in Denmark. The pricing for Mounjaro in Denmark is set at DKK 2,200 per month, while competitor Novo Nordisk charges between DKK 1,313 and 2,353 per month for its weight-loss medication Wegovy.
Bloomberg News reported on October 27 that the company expects to introduce Mounjaro in Hong Kong by the end of the year. The Hong Kong government has approved the sale of tirzepatide injections, branded Mounjaro, which will be delivered through a device known as Kwikpen. This approval allows the drug to be marketed for both long-term weight management and the treatment of type 2 diabetes.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Cramer likes Advanced Micro Devices, Inc. (NASDAQ:AMD) and called it a “long-term terrific story”.
“Just say you like AMD as we do for the Charitable Trust. We know that AI is big big big. Big enough for more than just one chip maker. AMD won’t catch NVIDIA, but it will do enough to take chunks of the business. Plus, it has tremendous PC exposure right into the teeth of a big PC refresh cycle. We’re buying more AMD in any weakness for the Trust because this is a long-term terrific story.”
Advanced Micro Devices (NASDAQ:AMD) has established itself as a significant player in the semiconductor industry. The company has gained substantial traction among personal computer manufacturers due to the popularity of its GPUs, central processing units (CPUs), and neural processing units (NPUs).
Its Ryzen AI 300 series NPUs are set to power various computing platforms from manufacturers such as Microsoft, Asus, Lenovo, and HP. CEO Lisa Su highlighted in July that a significant increase in the adoption of Instinct MI300 GPUs contributed to this product family surpassing $1 billion in quarterly revenue for the first time. In the second quarter, the company reported $2.8 billion in data center sales, marking an impressive 114% increase compared to the same period last year.
On October 10, Advanced Micro Devices (NASDAQ:AMD) hosted an event titled “Advancing AI,” where Lisa Su revealed details about the next generation of chips. During this event, she also announced plans to introduce the MI350X GPU in the upcoming year, which is set to directly compete with Nvidia’s Blackwell chips, with shipments expected to commence in the latter half of 2025.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Cramer expressed some degree of belief in the chatter surrounding Apple Inc.’s (NASDAQ:AAPL) iPhone 16 launch. Here’s what Mad Money’s host had to say:
“Thursday can top Wednesday because that’s when Apple and Amazon report. Now we’ve heard lots of negative chatter about the iPhone 16 launch. I think that the chatter is right. I think people will rush to sell. I say hold on, we’ve seen this movie before. Apple’s had suboptimal launches before and the best strategy has been to own it, don’t trade it. I bet we’ll be right again. Now, I want you to gird yourself for a weak number. Everyone’s expecting a weak number. When you get a weak number, guess what? The stock goes down and then you have to buy. Be ready to do so.”
Apple (NASDAQ:AAPL), renowned for its iPhone, has established itself as one of the most respected companies in the technology sector. Recent market reactions, however, suggest a note of caution among analysts and investors regarding the iPhone 16. On October 28, as per TipRanks, JPMorgan analyst Samik Chatterjee reported on the firm’s Apple product availability tracker, noting that in the seventh week since the introduction of the iPhone 16 lineup, delivery lead times across all models have moderated.
This trend is particularly evident in the Pro models. While this moderation is slightly higher than observed in the same week last year, overall lead times remain comparable to those for the iPhone 15. According to the analyst, this suggests that demand for the new models is still present, though it appears modestly below the levels seen at this time last year.
Chatterjee’s analysis also highlights expectations for Apple’s (NASDAQ:AAPL) upcoming September quarter results, which may exceed initial forecasts, but guidance for the December quarter is anticipated to be weaker. He pointed out that sell-through for the iPhone 16 series began slower than for the iPhone 15.
Although recent weeks have shown improved momentum, the increase is not significant enough to reach volumes seen in previous launches. As a result, forecasts for iPhone revenues in fiscal Q1 are expected to be below consensus estimates. Nonetheless, JPMorgan maintained an Overweight rating on the stock, with a price target set at $265.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 216
Cramer called Alphabet Inc. (NASDAQ:GOOGL) a great company but expressed discontent with the stock’s performance. It will announce its third-quarter earnings on October 29.
“First, we hear from Alphabet. Now, stock’s been all over the map but rarely in a good way. Now, we’ve trimmed our position in what you know as Google for the Charitable Trust because it’s hard to trust. Too often, Alphabet fails to impress. I think it’s a great company, okay, but it’s not a great stock because management often seems indifferent to the things that investors and analysts want to hear.
They really need to talk also about breaking out Waymo somehow. They’ve lost a ton of money… They don’t have enough cars on the road and that has to change in order for them to show that they are not niche, which is pretty much how Elon Musk described them in his Tesla conference call.”
Alphabet (NASDAQ:GOOGL) is advancing in autonomous vehicle technology through its subsidiary, Waymo. Waymo operates a fleet of approximately 700 self-driving cars that regularly transport passengers in cities such as Phoenix, Los Angeles, and San Francisco. The company is also testing its services in Austin, Texas, with intentions to launch fully in the near future.
Recently, Waymo secured a significant $5.6 billion in a Series C funding round led by its parent company. This marks the second time Waymo has sought external funding, following a $2.25 billion Series B round in 2020, which eventually increased to $3.2 billion. The latest capital infusion is earmarked for expansion into new cities and for advancing the company’s autonomous capabilities, particularly for applications in various business sectors.
In October, Alphabet’s (NASDAQ:GOOGL) Waymo announced a significant strategic partnership with South Korean automaker Hyundai. This multiyear agreement aims to integrate Waymo’s cutting-edge autonomous driving technology into a substantial number of electric Ioniq 5 SUVs over the coming years. These vehicles will be produced at Hyundai’s upcoming manufacturing facility in Georgia. Waymo plans to initiate on-road testing of these electric vehicles in late 2025, with the expectation of incorporating them into its robotaxi fleet in subsequent years.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms, Inc. (NASDAQ:META) is set to report its third-quarter earnings on October 30 and Cramer expressed confidence in the company’s ability to report another great quarter.
“After the close, we got… Meta Platforms and Microsoft. Meta reported a stellar quarter last time. I think they can do it again because the whole ad market seems to be going their way.”
Meta’s (NASDAQ:META) financial performance has been strong, primarily driven by a shift toward digital advertising. In the second quarter, the company’s advertising revenue reached an impressive $38.3 billion.
On October 28, The Information reported that Meta (NASDAQ:META) has embarked on developing its own search engine. According to the report, the company is seeking to create a system that can scour the internet for information, which will be utilized by its AI chatbot. This move is intended to lessen reliance on established search engines like Google and Microsoft’s Bing, which currently supply information on various topics such as news, sports, and stock data for users of Meta AI.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
While Cramer has previously highlighted Microsoft Corporation’s (NASDAQ:MSFT) enormous position multiple times, on Friday, he highlighted that Copilot’s performance did not turn out the way we all thought. Here’s what he had to say:
“After the close, we got… Meta Platforms and Microsoft… Let’s talk about how Copilot may not be as strong as we thought. Somehow, they have to put that story to rest or it’s going to dog the stock until they come up with a new narrative.”
Microsoft’s (NASDAQ:MSFT) offerings include enterprise software, consumer applications, cloud services, gaming, social media, and hardware. A celebrated product in its lineup is Microsoft 365 Copilot, which functions as a personal assistant designed to improve productivity. Since its general release less than a year ago, approximately 60% of Fortune 500 companies have started using this tool to some extent, with the daily user count nearly doubling in the latest quarter.
In the most recent quarter, Microsoft’s (NASDAQ:MSFT) Chief Financial Officer, Amy Hood, revealed that the company allocated $19 billion for capital expenditures, which includes finance leases primarily focused on artificial intelligence and cloud-related initiatives.
However, it should be noted that recently, Salesforce CEO Marc Benioff publicly critiqued the tool, suggesting that the rebranding of Copilot as “agents” indicates a level of distress within Microsoft. He characterized Copilot as lacking essential data, metadata, and enterprise security features necessary for creating effective corporate intelligence.
Furthermore, Benioff described the tool as inaccurate, claiming it risks exposing corporate data and compelling users to develop their own large language models. Referring to Copilot, he drew a parallel to Clippy, the infamous paperclip assistant from the 1990s, suggesting that Copilot has not yet lived up to its potential.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 308
Cramer has been praising Amazon.com, Inc. (NASDAQ:AMZN) for some time now. While he acknowledges some investors’ negative sentiments toward its last quarter, he is a proponent of holding on to the stock.
“Thursday can top Wednesday because that’s when Apple and Amazon report… Amazon’s hard. People truly disliked the last quarter and the stock was hammered mercilessly because the company somehow got linked with echoes of a weak consumer.
I don’t buy it. I think Amazon’s doing very well. Of course, a few weeks later from when they reported that so-called bad quarter, the stock was right back to where it was trading before it reported the quarter and then it went higher still. If you don’t own any again, I don’t want you to buy it ahead. You buy it after.”
Amazon (NASDAQ:AMZN) has established itself as a major player in the global technology landscape, focusing on online retail, advertising, and subscription services. The company’s performance remains strong, with significant contributions from its higher-margin sectors. Growth in Amazon Web Services (AWS) and the digital advertising division has played a significant role in improving profit margins, while improvements in e-commerce operations have also contributed positively to financial results.
In Q2, Amazon’s (NASDAQ:AMZN) AWS experienced a 19% year-over-year increase in revenue, reaching $26.3 billion. This segment, known for its cloud infrastructure services, continues to be a critical driver of the company’s overall profitability. Concurrently, the digital advertising business saw a rise of approximately 20%, bringing in about $9.5 billion.
While we acknowledge the potential of AMZN 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 timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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