In this piece, we will look at the stocks Jim Cramer recently discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed the relationship between Microsoft and OpenAI. Microsoft is one of OpenAI’s largest investors, and due to its investment, the firm is entitled to a percentage of OpenAI’s revenue. Cramer believes that this revenue is included in Microsoft’s Azure cloud computing business. Azure growth has been a key driver of Microsoft’s share price gains in 2025 as investors have turned bullish about the firm’s AI growth prospects. However, Cramer believes that any friction between the two could impact Azure:
“Any love lost between those two, any love lost? I mean this is one of those things Carl, I hear about this and I think, this has got to be one of the most tense relationships and that means, lookout, maybe some of that revenue that went from Azure comes back out.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on August 6th.
For these stocks, we also mentioned the number of hedge fund investors. 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).
10. Shopify Inc. (NASDAQ:SHOP)
Number of Hedge Fund Holders In Q1 2025: 77
Shopify Inc. (NASDAQ:SHOP) is a Canadian eCommerce retailer whose shares jumped by 18% in August after its second-quarter earnings smashed analyst estimates out of the park. The results saw the firm’s $0.35 EPS and $2.68 billion in revenue beat analyst estimates of $0.29 and $2.55 billion. Cramer has been a long-time fan of the stock, and he kept with his enthusiasm after the earnings report:
“My god I mean Harley just crushed it. Now he’s now down to the point where there really isn’t anybody else that competes. The other guys turned out to be really, you know a lot of people say, hey he’s playing checkers, they’re playing chess. The other guys were, they were playing, I don’t know, like Uno or something because jeez, he’s crushing everyone. If you start a new business, there’s nobody to use anymore. There’s nobody to use. . . they’re good for small businesses and medium size. And by the way, they have a, I mean I was going over with Harley, the large businesses they have, let’s not rule out some of the things they’re doing.
“Shares of Shopify are soaring after the eCommerce company reported 31% revenue growth in the second quarter, that’s amazing.”
Cramer was optimistic about Shopify Inc. (NASDAQ:SHOP) back in April as well. Here is what he said:
“Better than ever. The Shop Master. I think it’s great. Harley’s great. I love those guys. I think you got a total winner. I would not trade, I would not move a share. Shopify, yes.”
9. Shake Shack Inc. (NYSE:SHAK)
Number of Hedge Fund Holders In Q1 2025: 39
Shake Shack Inc. (NYSE:SHAK) is a fast food chain whose shares struggled after the firm’s latest earnings report. The stock price was 20.6% lower after the firm’s second-quarter earnings. Shake Shack Inc. (NYSE:SHAK) suffered, as despite beating analyst EPS and revenue estimates, the firm guided lower-than-expected same-store sales. Cramer discussed the Shake Shack Inc. (NYSE:SHAK) earnings and what drove the stock lower:
“Well that’s why I say that, J Powell does have to cut. There’s too many conference calls that really do say, look, our business is really being hurt now. People are just not able to afford the nine dollar burger, I had Shake Shack on the other night, they’re advertising deals for the first time, why? Because they got to come down in price. Everybody has to come down in price and that’s going to hurt eventually to those who want to pass down the tariffs.”
Here are Cramer’s earlier thoughts about Shake Shack Inc. (NYSE:SHAK):
“During earnings season, when a stock comes in maybe too hot, even a good quarter might not be enough to prevent it from pulling back. Take Shake Shack, iconic burger chain. Last Thursday morning, the company reported a pretty clean top and bottom line beat with its highest restaurant level margins in six years, which is what I care about. Yet some people thought there was a fly in the ointment. Shake’s same-store sales grew at just 1.8%. Analysts were looking for 2.2%. Give me a break.
That’s hardly the end of the world, but given that the stock was up 60% from where it was trading when they reported the previous quarter, clearly expectations were high and there wasn’t much margin for error there. We had to be careful, but that’s why the stock plunged almost 15% on Thursday and fell another 7% on Friday before rebounding more than 3% today.”
