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 how software-as-a-service (SaaS) stocks had struggled in today’s AI age. He commented that investors were moving away from software stocks, except for mega firms such as Microsoft, and dubbed the development as having created a set of ‘have-nots’ in the market:
“You know, David, one of the things that I see happening here is that there are some have nots. And well, I’m beginning to wonder, software. You have these software-as-a-service software, enterprise software. These used to be the companies that people looked at. They’re no longer what people are looking at. And I think that what you see, or even just a software company like a Confluent. I mean Confluent is down 33% today. So I mean people are gravitating away from a lot of software. . .there are have nots. And I want to caution people, there are have nots. Not everything is terrific.”
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 July 31st.
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. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders In Q1 2025: 42
Arm Holdings plc (NASDAQ:ARM) is a British semiconductor design company whose design blocks enable chip designers to create their products. Its shares have gained 8% year-to-date but dipped by 15.8% between late July and August start after the firm’s second quarter midpoint revenue forecast of $1.06 billion only managed to meet analyst estimates. Investors were expecting Arm Holdings plc (NASDAQ:ARM) to beat the estimates to showcase tailwinds from AI revenue. As part of his remarks, Cramer mentioned the forecast:
“Now Rene Haas, not prideful with a quarter that I thought was okay. But the stock is down 14%.
“You needed to guide. You did not get a guide up, and you need a big guide up.”
The CNBC TV host had previously discussed Arm Holdings plc (NASDAQ:ARM) in February. Here is what he said:
“Tomorrow, we’re going to hear from Arm. And you’re going to hear Arm saying listen we’re winning that arms race in CPUs too. So there’s just a lot of them and they have a confluence of things with Jensen. But I just come back and say, Rene Haas doing better, at Arm, Jensen Huang doing better in NVIDIA.”
9. eBay Inc. (NASDAQ:EBAY)
Number of Hedge Fund Holders In Q1 2025: 51
eBay Inc. (NASDAQ:EBAY) is an eCommerce retailer whose shares have gained 47% year-to-date. Most of these gains are due to an 18.3% jump in July after the firm’s second-quarter earnings report. The results saw eBay Inc. (NASDAQ:EBAY) beat analyst second-quarter revenue and EPS estimates of $2.64 billion and $1.30 by posting $2.73 billion and $1.30, respectively. The firm’s third quarter revenue guidance of $2.69 billion and $2.74 billion also overshot analyst estimates of $2.66 billion. Here’s what Cramer believes about eBay Inc. (NASDAQ:EBAY)’s strong performance:
“Now one David, that I know that you will remember from the old days that really is putting on a good show, would be eBay. They’ve got their mojo back. It’s up 15%, they had very good numbers, and I salute them. They hung in and now their model is working. They’ve got the algos working so to speak. And a lot of people upgraded it. That’s to me, better focus, better focus.”
Earlier, Cramer discussed eBay Inc. (NASDAQ:EBAY)’s marketplace and shifting sentiment:
“There’s no real theme to the other stocks on the list… eBay’s a real shocker. It’s come a long way to get back on this list. Now, I’ve watched this stock get carved up for ages, but now it looks like eBay has stopped being a whipping boy, and people are feeling comfortable buying merchandise second-hand. Has a partnership with Facebook’s Marketplace, which has spurred real growth for the company. I like that, by the way, that marketplace section.”
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