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.”
8. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders In Q1 2025: 145
Uber Technologies, Inc. (NYSE:UBER) is a ride-sharing company whose shares have gained 42% year-to-date. The firm has benefited from the growth in ridesharing services, which include a partnership between it and Waymo. Uber Technologies, Inc. (NYSE:UBER)’s shares gained 3.9% after the firm’s second-quarter earnings report saw its gross bookings of $46.8 billion beat analyst estimates of $46.4 billion. During the quarter, the firm’s 180 million monthly active platform users also beat analyst estimates of 176.6 million. Here’s what Cramer said about Uber Technologies, Inc. (NYSE:UBER) after the earnings:
“Look this is just a steady good story. Boy the stock was down five this morning. I think it was from people who didn’t understand the [inaudible] but this could be just throws off cash like no tomorrow. I thought that was really interesting because remember when they used to lose cash like no tomorrow?”
Cramer wagered a guess at Uber Technologies, Inc. (NYSE:UBER)’s future share price in his earlier remarks. Here is what he said:
“Okay, stock’s up, stock’s up 45%. I got so many, I got a lot of stocks that are down. Those are the ones that gotta wake up. I think Uber’s going to $200. I just say you go buy more here. That’s the only solution that I see.”
7. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders In Q1 2025: 227
Alphabet Inc. (NASDAQ:GOOGL)’s shares have gained 5.8% year-to-date on the back of several catalysts, such as the strong performance of its YouTube and cloud computing businesses. In his previous comments about the firm, Cramer has regretted selling the shares on the back of pessimism surrounding its affairs with the Justice Department. Alphabet Inc. (NASDAQ:GOOGL) is also operating in the autonomous driving industry through its Waymo business. Along with Tesla, Waymo is one of the largest self-driving operators in the US. Cramer discussed Alphabet Inc. (NASDAQ:GOOGL)’s Waymo during the show:
“No, the Waymo deal, the Waymo deal’s good. I love Waymo. Waymo’s cheap, Waymo’s very cheap, David. I go to McDonald’s and I use Waymo. You’re full service, I know you like the black cars. I have taken Waymo’s to McDonald’s. . .”
Here are his recent thoughts about Alphabet Inc. (NASDAQ:GOOGL):
“Third, Alphabet. Google Search and YouTube are doing amazingly well. You know what, I thought that Gemini, their AI platform, would cannibalize regular Google. Wrong. It hasn’t. Instead, they’re complementary. Business is very, very strong. And Alphabet had a remarkable quarter for all divisions, including Waymo… which is building a nice lead over the rest of the autonomous vehicles in the space. They, Microsoft, Meta are buying a gigantic number of NVIDIA chips and that’s who wins.”
6. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders In Q1 2025: 75
Arista Networks Inc (NYSE:ANET) is a data center company that sells hardware, such as networking switches, and provides an operating system as well. Its shares have gained 23% year-to-date and jumped by a whopping 17.5% after the firm’s latest earnings report. The report saw Arista Networks Inc (NYSE:ANET) guide third quarter revenue at $2.25 billion, which beat analyst estimates of $2.11 billion. The firm’s second quarter revenue of $2,21 billion also beat analyst estimates of $2.11 billion. Cramer has been a long-term fan of the stock and regretted being unable to discuss the stock during his Mad Dash segment:
“True, and yet I was going to do Arista Net for my Mad Dash. But I didn’t get a chance to. She’s just killing it. She’s killing it. Jayshree Ullal.
“And then I didn’t even to Arista Net and Jayshree Ullal, with some number that even competitors are saying is incredible.”
However, Cramer did manage to discuss Arista Networks Inc (NYSE:ANET) later during the day on Mad Money. Here is what he said:
“And look, this short-busting Palantir is not alone. Stocks in this market fly when they’re heavily shorted and something good, anything good, happens. Take Arista Networks, one of my faves, the data center networking play… If the stock’s been creeping up every step by step, inch by inch, the shorts were increasing their bets the whole time. They figured it was like shooting fish in a barrel.
Then Arista reported, and the numbers, they were stupendous. The last quarter was an apparition. CEO Jayshree Ullal gaffed and gutted the short sellers… The stock managed to shoot up more than 17% today. You don’t find ordinary longs pay up like this. It’s the short sellers panicking, knowing that they’re done, stick a fork in them. They have no choice but to buy, to close out their now losing positions.”
5. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders In Q1 2025: 44
Moderna, Inc. (NASDAQ:MRNA) has been one of the most ill-fated stocks in 2025. The shares have lost 38% year-to-date as the firm has struggled to diversify away from its mRNA vaccines amidst slipping demand for the products. For instance, Moderna, Inc. (NASDAQ:MRNA)’s full-year revenue guidance of $1.5 billion to $2.2 billion given during its second quarter earnings was lower than the earlier guidance of $1.5 billion to $2.2.5 billion. The reason behind the trimmed guidance was deferred revenue from its COVID vaccines. Cramer discussed Moderna, Inc. (NASDAQ:MRNA) in the context of RFK Jr:
“Hey that’s got the double whammy. It’s vaccine, got a guy at HHS doesn’t like it, they never did anything with the other one.”
The CNBC TV host discussed Moderna, Inc. (NASDAQ:MRNA) in May. Here is what he said:
“There’s gotta be some value in Moderna. There just has to be, but I’ve been against this stock for so long. I first discovered it at 18. Maybe that should be the price target.”
4. Astera Labs, Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders In Q1 2025: 45
Astera Labs, Inc. (NASDAQ:ALAB) is a semiconductor company that makes and sells connectivity chips used in enterprise computing and AI. Its shares have gained 32% year-to-date and jumped by 32% in August alone on the back of its second-quarter earnings report. The results saw Astera Labs, Inc. (NASDAQ:ALAB) revenue grow by a whopping 150% annually to convince investors about the merits of its presence in the AI industry. Cramer regretted being unable to find the time to discuss Astera Labs, Inc. (NASDAQ:ALAB) in his Stop Trading segment:
“Carl, had I had a chance to do a Stop Trading I would have mentioned Astera Labs, ALAB, up 43. Lot of that is because the NVIDIA deal they signed in May but I don’t have any time to talk about that.”
Here are his previous thoughts about Astera Labs, Inc. (NASDAQ:ALAB):
“Okay, Astera Labs is a company that is incredibly well run, that has tremendous growth, but like many other companies, that stock has come down in value. I actually think it’s a good place to buy, given the fact that so many of these other stocks actually even have higher price-to-earnings multiples.”
3. Planet Fitness, Inc. (NYSE:PLNT)
Number of Hedge Fund Holders In Q1 2025: 41
Planet Fitness, Inc. (NYSE:PLNT) is a consumer cyclical company that operates fitness centers all over the US. Its shares have gained 6.9% year-to-date on the back of strong earnings performance and associated tailwinds. Planet Fitness, Inc. (NYSE:PLNT)’s second quarter earnings saw the firm post same-store sales growth of 8.2% to beat analyst estimates of 5.9% while its operating margins also beat analyst figures. Naturally, Cramer was appreciative of the strong figures:
“I have Planet Fitness on they’re numbers are just incredible.”
The CNBC TV host discussed Planet Fitness, Inc. (NYSE:PLNT) in April. Here is what he said:
“You know I do a memo each morning where I do uh the 10 things that I’m looking at and it starts with a list of about 25 things. The only positive numbers I saw, the only raising price target that I saw today was Planet Fitness, so I took a look at it they’re doing better than expected. I think you have a winner.”
2. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders In Q1 2025: 70
DraftKings Inc. (NASDAQ:DKNG) is a technology company that primarily provides sports betting services. Its shares have gained 19.5% year-to-date as the firm has benefited from multiple strong quarterly earnings reports and strong annual guidance figures. For instance, DraftKings Inc. (NASDAQ:DKNG)’s jumped in February after the firm increased the low end of its full year guidance to $6.3 billion from an earlier $6.2 billion. In August, the firm reported that its revenue grew by 37% to $1.51 billion. Cramer believes that DraftKings Inc. (NASDAQ:DKNG) will benefit from the football season:
“And then Jason Robins, DraftKings, I mean coming into the football season, coming in hot as opposed to, no I came in cool, I’m sorry.”
He discussed DraftKings Inc. (NASDAQ:DKNG) in detail later during the day in Mad Money:
“As we approach football season, things are already looking pretty darn good for DraftKings, one of the nation’s largest online sportsbooks. I’ve been steadfastly bull on this one, you know, just the whole way. After the close, DraftKings reported an impressive quarter, revenue growth accelerating to 37%, better-than-expected earnings, higher-than-expected earnings before interest, taxes, depreciation, and amortization. These results were driven by what DraftKings calls sportsbook-friendly outcomes in the quarter, and the company only reiterated its full-year forecast. But management did say that it now expects to see revenue near the high end of its guidance range. That was good enough to send the stock flying in after-hours trading.”
1. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders In Q1 2025: 77
Data analytics firm Palantir Technologies Inc. (NASDAQ:PLTR) is one of the hottest stocks on the market in 2025. Its shares have gained a whopping 148% year-to-date as the firm has managed to consistently outperform investor expectations. Software stocks, such as Palantir Technologies Inc. (NASDAQ:PLTR), are evaluated by their Rule of 40 score, which combines a firm’s revenue growth percentage and its profit margin to determine business performance. In his previous comments, Cramer has commented that instead of a Rule of 40 score, Palantir Technologies Inc. (NASDAQ:PLTR) has a Rule of 80 score. The firm’s shares are up by 16% after the firm’s latest earnings, and Cramer was nothing but full of praise for the firm’s CEO, Alex Karp:
“And, Alex Karp, congratulations again for getting the stock up. What a guy. What a sweetheart. That’s a word that’s not used by anyone in the world, remember pistol competition he does.”
Previously, Cramer discussed Palantir Technologies Inc. (NASDAQ:PLTR)’s earnings. Here is what he said:
“Palantir Technology reported a spectacular quarter after the close, much better than expected revenue, up 48% year-over-year, 2 cent earnings beat off a 14 cent basis, management raising their full year forecast dramatically. Company’s Rule of 40 score, which combines the revenue growth rate with the adjusted operating margin, came in at 94 for the quarter. I’ve never seen anything like it, so no wonder this already red-hot stock could surge in after-hours trading.
And look, I get Palantir. It’s among the most popular stocks in the universe. Alex Karp’s one of the smartest, most perceptive CEOs I’ve ever met. His team is amazing, and the contracts he accrued are incredible. But his stock, it’s overvalued versus any metric that I can find, the least of which may be earnings per share. It sells at something like an astounding 277 times earnings, and that was before this quarter and tonight’s after-hours gains. I accept that. Sometimes you have to pay too much for a real spec.”
While we acknowledge the potential of PLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this cheapest AI stock.
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