Jim Cramer, the host of Mad Money, recently offered his views on several key topics, including Big Tech stocks and cryptocurrency. On the subject of Big Tech, Cramer advised investors not to write off the mega-cap companies, especially after some of them saw gains toward the end of November, following declines. He stressed that moments like these serve as a reminder of what happens when people lose faith in these companies. Cramer explained:
“Remember it because it’s a textbook reminder of what happens when you decide the mega capitalization stocks are done, when you think that they’re written off. The moment you give up on them, what happens? They come roaring back.”
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Cramer also reiterated his long-standing support for cryptocurrency, framing it as a potential hedge against the government’s growing deficit and the risk of inflation. While acknowledging that there is no clear evidence yet that crypto can effectively shield against economic challenges, he suggested that it remains a plausible option for many investors.
“I’ve liked crypto for a very long time, mostly because I know there’s a huge constituency of investors who want to buy something that can protect them from our government’s busted budget.”
He added that, although crypto’s ability to offer protection is unproven, “sometimes that’s all you need in this business.” Reflecting on the country’s fiscal outlook, Cramer expressed hope that the U.S. economy might eventually grow its way out of the deficit through higher tax receipts. However, he fears that political gridlock, particularly during debt ceiling debates, could lead to drastic measures, such as the government buying back treasury bonds at a discount.
Cramer also expressed disappointment in both the Obama and Trump administrations for failing to issue long-term, 50-year treasury bonds during periods of ultra-low interest rates. He described this decision as a missed opportunity that would have saved the government substantial amounts of money. Instead, Cramer noted that the government now finds itself issuing short-term debt at much higher rates, which he deemed a mistake.
“These days, I still have some gold as a hedge, but because it can be easily confiscated… I think Bitcoin, Ethereum, maybe even some other cryptocurrencies deserve a spot in your portfolio too. Maybe one day, if the deficit gets under control, I’ll change my tune. But anyone who’s followed me for more than 10 minutes knows that I’m a huge skeptic about our government’s ability to balance the budget.”
“It’s not that we don’t know how to solve the problem, it’s that legislators lack the political will to do things that are unpopular,” he explained. He pointed out that balancing the budget requires difficult choices, such as raising taxes or cutting spending, but most politicians prefer to delay action, leaving tough decisions to future administrations. Given this outlook, Cramer continues to hold cryptocurrency as a safeguard against national debt concerns, acknowledging that while he hopes the deficit issue will be resolved, he remains doubtful it will happen during his lifetime.
Jim Cramer’s Lightning Round: 7 Stocks to Watch
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during a recent episode of Mad Money. 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 Lightning Round: 7 Stocks to Watch
7. Red Cat Holdings, Inc. (NASDAQ:RCAT)
Number of Hedge Fund Holders: 7
Cramer highlighted how Red Cat Holdings, Inc. (NASDAQ:RCAT) stock went up significantly in November and said:
“Yeah… look, they have a business. Red Cat has a business, however, the stock just went up 850%. I am willing to pass on an 850 percenter. I don’t want to bet that it’s going to go up a thousand percent. It’s just not my style.”
Red Cat (NASDAQ:RCAT) provides products, services, and solutions for the drone industry in the U.S., including integrated robotic hardware and software for situational awareness and intelligence, as well as the Teal 2 unmanned aircraft system for military and public safety applications. As of the first quarter of fiscal 2025, the company reported a record backlog of $13 million, reflecting strong demand for its products and services.
The company also reported significant year-over-year growth, supported by a solid pipeline and backlog. For the upcoming 2025 calendar year, the company has provided guidance indicating revenue expectations in the range of $50 to $55 million, continuing its growth trajectory. This forecast excluded any contributions from the Short Range Reconnaissance (SRR) program or other NATO-related programs of record.
In a significant development, Red Cat (NASDAQ:RCAT) recently announced that it was selected as the winner of the U.S. Army’s SRR Program of Record. George Matus, Chief Technology Officer at Red Cat, emphasized that the company’s primary focus is now on ramping up production for the next-generation system, which has been introduced as the Black Widow and WEB.
6. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Number of Hedge Fund Holders: 16
Commenting that Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is “worthwhile speculation”, Cramer remarked:
“I like the story at 10 and I have to tell you, you know what that makes me? That makes me wrong. I knew that Nvidia had a stake in it. They still do and it made me get excited about it… Then they did a secondary offering and it didn’t hold. Now I think at 5, it is worthwhile speculation.”
Recursion Pharmaceuticals (NASDAQ:RXRX) is a clinical-stage biotechnology company focused on industrializing drug discovery through technological integration, with multiple drug candidates in clinical trials for various conditions. In 2023, Nvidia made a significant investment of $50 million in the company to help advance the development of its artificial intelligence models used in drug discovery.
In the third quarter, the company expanded its collaboration with Google Cloud, aiming to further advance its drug discovery capabilities. This partnership highlights the company’s ongoing relationships with major technology companies like Google, Nvidia, and Tempus, which are integral to supporting its platform.
Additionally, on November 20, Recursion Pharmaceuticals (NASDAQ:RXRX) completed a business combination with Exscientia, a move that saw Exscientia become a wholly-owned subsidiary of Recursion. This merger created a vertically integrated and technology-enabled drug discovery platform.
The combined entity now boasts a pipeline of over 10 clinical and preclinical programs, along with approximately 10 advanced discovery programs. Furthermore, Recursion and Exscientia’s therapeutic partnerships include more than 10 partnered programs in areas such as oncology and immunology. These partnerships have generated around $450 million in upfront and milestone payments. Looking ahead, the combined company has the potential to earn an additional $20 billion in milestone payments, excluding royalties, from these partnerships.
5. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders: 31
A caller asked Cramer’s thoughts on Dow Inc. (NYSE:DOW), highlighting that the stock was recently dropped by the Dow Jones Industrial Average. Here’s what Mad Money’s host had to say:
“This is a tough one. I think that Jim Fitterling does a great job, but it needed China. It needs pricing to go up, it needs a much stronger economy. It yields 6.29. A lot of people bought it in the ‘50s thinking that it wouldn’t break down through the 5% level. If you don’t have growth and you sell at 21 times earnings, you’re not gonna be able to do anything. At these prices, I’m willing to put a position on but understand that the yield turned out to be not the kind of protection that we thought.”
Dow (NYSE:DOW) provides a wide range of materials science solutions for various industries, through its subsidiaries, offering products such as ethylene, propylene, coatings, and adhesives. It was removed from the Dow Jones Industrial Average (DJIA) before the opening of trading on November 8.
According to S&P Dow Jones Indices, the decision was influenced by the fact that Dow Inc. had become the smallest company in the index by market capitalization. During its third-quarter earnings call, management acknowledged that it had been facing subdued demand in several of its end markets and regions. The company noted that the greatest challenges were being experienced in Europe and China.
Management commented that consumer spending remained under pressure due to ongoing inflation, and infrastructure demand, especially in residential construction, was notably low. Management also noted that in China, new home prices had dropped for the 15th consecutive month. Dow (NYSE:DOW) also observed that auto production in China had fallen for the fourth month in a row, a reflection of both weak domestic demand and the impact of European tariffs on exports.
It should be noted that CEO Jim Fitterling, talking about the future, stated that the company’s financial stability will sustain its growth investments, which are aimed at higher-value sectors and regions, especially those with strong demand and where the company holds a cost advantage. These investments are projected to generate over $3 billion in underlying earnings by 2030.
4. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 33
When a caller asked if it was safe to get back into Super Micro Computer, Inc. (NASDAQ:SMCI), Cramer said:
“No, my view is accounting irregularities equal sell and I never go back. I will be willing, happily willing to miss another 20 points. It doesn’t matter. Accounting irregularities equals sell has saved me millions of dollars.”
Super Micro (NASDAQ:SMCI), a company renowned for developing and producing high-performance server and storage solutions, has recently faced significant challenges. According to WSJ, in September, the Department of Justice (DOJ) initiated an investigation into the company’s accounting practices, which resulted in a substantial drop in the value of its stock.
This situation worsened when Ernst & Young, the company’s auditor, resigned, citing concerns related to governance, transparency, and internal controls. Despite the resignation, the company disagreed with these concerns and maintained that no restatements of its financial reports would be necessary. In a more recent development, its shares saw an uptick after the company announced that a final review had found no evidence of fraud or misconduct by its management or board in connection with the accounting issues.
Furthermore, in response to the challenges it faced, Super Micro (NASDAQ:SMCI) indicated that it would be appointing a new chief financial officer. This move is part of a series of actions prompted by recommendations from a special committee, which suggested measures to strengthen the company’s corporate governance and ensure continued support for its rapid growth.
3. ZoomInfo Technologies Inc. (NASDAQ:ZI)
Number of Hedge Fund Holders: 37
When a caller asked about ZoomInfo Technologies Inc. (NASDAQ:ZI), Cramer said, “Not enough specialty, not enough move. Let’s pass on that.”
ZoomInfo (NASDAQ:ZI) offers a cloud-based platform that provides sales and marketing teams with intelligence on organizations and professionals, helping users identify target customers, track buying signals, and engage through automated tools. In the third quarter, it saw continued growth, particularly in its move up-market, supported by the success of ZoomInfo Copilot and the expansion of its operations.
The company reported solid financial results, with net revenue retention remaining stable for the third consecutive quarter. Additionally, it saw an increase in its customer base, with 1,809 customers now having an annual contract value of $100,000 or more, reflecting a 12-customer increase from the previous quarter. For the third quarter, the company posted a GAAP operating income of $43.5 million and GAAP revenue of $303.6 million, marking a 3% decline in revenue year-over-year.
For the full year 2024, ZoomInfo (NASDAQ:ZI) forecasts GAAP revenue between $1.201 billion and $1.204 billion, with adjusted operating income ranging from $416 million to $418 million. It expects non-GAAP net income to be between $0.92 and $0.93 per share, based on 378 million weighted average diluted shares outstanding.
2. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 52
Cramer likes Reddit, Inc. (NYSE:RDDT) and praised the co-founder and CEO, Steve Huffman.
“I think Reddit’s fabulous. What can I say? I know it’s up a great deal, but I think Steve Huffman’s doing a fabulous job. I’m not a seller.”
Reddit (NYSE:RDDT) operates a popular platform, enabling users to engage in discussions, share content, and participate in a wide range of interest-based conversations. In a conversation with The Wall Street Journal, CEO Steve Huffman noted that the platform has become an integral part of how people seek information online.
According to Huffman, Reddit was the sixth most searched term on Google in the U.S. in 2024. Huffman noted that many users increasingly go to Google Search to access Reddit, acknowledging that people turn to the platform because it provides valuable insights, advice, and perspectives on nearly every topic imaginable. In the third quarter, the company saw significant growth in its user engagement. Daily Active Uniques (DAU) grew by 47% year-over-year, reaching 97.2 million.
Huffman also highlighted that the vast knowledge on Reddit plays a role in the development of artificial intelligence, stating that the platform’s content contributes significantly to the training of major AI models, with the intelligence on Reddit being a key source for these advancements.
Huffman stated that Reddit (NYSE:RDDT) has established partnerships with both Google and OpenAI, in addition to collaborating with organizations like the Internet Archive on a pro bono basis. He mentioned that the company has an initiative focused on making its corpus accessible to those conducting research.
1. Aptiv PLC (NYSE:APTV)
Number of Hedge Fund Holders: 52
When a caller asked about Aptiv PLC (NYSE:APTV), Cramer expressed concern and said:
“Yeah, auto parts. I am concerned that many auto parts may be made in China. We don’t know. AutoZone had a very good quarter. I would go with AutoZone.”
Aptiv (NYSE:APTV) designs, manufactures, and sells vehicle components, providing electrical, electronic, and safety technologies to the automotive and commercial vehicle markets. The auto industry overall has faced challenges, especially in the latter part of the year. Rising competition from Chinese manufacturers and a slowdown in consumer demand, partly driven by inflation and broader economic concerns, have impacted growth in the sector.
For the third quarter, the company reported a U.S. GAAP revenue of $4.9 billion, marking a 5% decline compared to the same period in the previous year. This drop in revenue was driven by a reduction in vehicle production at multinational customers, including in China, where the company saw a 6% decline.
Aptiv (NYSE:APTV) management indicated that they anticipate more localized demand within China, emphasizing the need to adapt their supply chain to better serve Chinese customers. According to the latest earnings call, the company has been increasingly focusing on building and localizing its supply chain to meet this potential shift in demand for locally sourced products.
While we acknowledge the potential of Aptiv PLC (NYSE:APTV) 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 APTV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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