Jim Cramer’s Lightning Round: 7 Stocks Under the Spotlight

3. Crown Castle Inc. (NYSE:CCI)

Number of Hedge Fund Holders: 34

When asked about Crown Castle Inc. (NYSE:CCI), Cramer said, “I have not liked Crown Castle for ages.”

Crown Castle (NYSE:CCI) is a major player in the communications infrastructure sector, owning and managing cell towers and miles of fiber that support small-cell and fiber solutions in U.S. markets. Since it entered the fiber market in 2015, the company has expanded its operations through acquisitions. However, the high costs associated with building fiber infrastructure have negatively impacted the company’s financial performance.

In response to these challenges, the company is reevaluating its approach to the fiber business and considering various options for its fiber assets. This review was initiated in part due to a pact with activist investor Elliott Investment Management, who has been pressing for changes within the company. In December 2024, Bloomberg reported that TPG Inc. was in advanced discussions to acquire Crown Castle’s fiber business for roughly $8 billion, citing sources familiar with the matter.

The potential sale follows the company’s efforts to enhance profitability and improve capital efficiency within its fiber segment. In the third quarter, as part of these efforts, Crown Castle (NYSE:CCI) and its customers mutually decided to cancel around 7,000 greenfield small cell nodes from the company’s contracted backlog. The decision, part of a broader plan to boost returns, is expected to improve the overall return on the remaining contracted backlog of approximately 40,000 nodes and enhance capital efficiency moving forward.