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.”
8. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Number of Hedge Fund Holders In Q1 2025: 47
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a cruise ship company that Cramer has discussed several times in 2025. The shares have lost 3.9% year-to-date due to weak earnings performance earlier in the year and investor worries about the Trump administration ending tax exemptions for the sector. However, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)’s shares jumped by 9% after the firm reiterated its 2025 earnings per share forecast of $2.05 to beat analyst estimates of $2.02. The stock soared as Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) entered the earnings season with bearish sentiment. Cramer discussed the firm:
“And one we didn’t even talk about that I think is going to shock cruise people, is Norwegian Cruise. When the other day, we had Royal Caribbean, people didn’t like their outlook but they said they were still the best. But it turns out that the one that is really the best is, Norwegian Cruise.”
Here are Cramer’s previous comments about Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) made after an earlier earnings report that indicate the pessimism surrounding the firm:
“Yeah look I think Norwegian, again the forecast was not as robust as they could have done. They could have easily said look things are really good.”
7. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders In Q1 2025: 81
Comcast Corporation (NASDAQ:CMCSA) is CNBC’s parent firm and a legacy media company still struggling to grapple with the emergence and dominance of online streaming. Its shares have lost 12.8% year-to-date but would have been better off had it not been for a 9% dip before and after the firm’s Q2 earnings report. Before the earnings, Comcast Corporation (NASDAQ:CMCSA)’s shares fell after peer Charter Communications reported a broadband customer drop, and after the earnings, they fell as the firm also reported a broadband customer drop. However, the stock was spared a major selloff as the customer drop missed analyst estimates. Here’s what Cramer said about Comcast Corporation (NASDAQ:CMCSA):
“It would have been good if they had pivoted to internal cybersecurity. Somewhat like if they had been able to purchase CloudFlare when Mathew Prince’s stock was in the 70s. They did not take advantage of what they had and used the cash.”
Previously, Cramer discussed Comcast Corporation (NASDAQ:CMCSA)’s valuation:
“Okay so, I’m just gonna go there. Comcast sells 7.8 time forward earnings. So you have to go very far to find companies with that low multiple. Their multiple is lower than Ford Motor, okay. Their multiple is, only GM, that I have found is a lower multiple. So what do you make of that?”
“. . .it’s 4% yield. Again, the top, the bottom ten percent. No, the bottom ten of the S&P [in terms of the multiple]. With a very good company.”
6. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q1 2025: 212
NVIDIA Corporation (NASDAQ:NVDA) is a regular feature of Cramer’s morning show. The firm’s had a colorful 2025, to say the least, as it has fought through panic-driven market selloffs and restrictions on its products. Recently, NVIDIA Corporation (NASDAQ:NVDA) scored a win after it revealed that the Trump administration had allowed it to sell H20 GPUs to China. In his previous comments, Cramer remained skeptical about reports claiming that the firm was struggling with H20 inventory. This time, he commented on reports suggesting that NVIDIA Corporation (NASDAQ:NVDA) was tracking the H20 GPUs:
“This notion about the H20 and whether it is a Trojan horse against the Chinese is front and center. I have not been able to get a comment yet. . .
“Now, look, once again you’re casting aspersions on a man, Jensen Huang, that you better know your stuff. You better know your stuff before you make those challenges. Because they’ve scrubbed the H20. Now one thing is for certain, you’re writing on a NVIDIA platform and that’s what the story is, not that there is some sort of Trojan horse. I don’t buy it. A lot of people feel buy the way that the Chinese put Trojan horses in our chips, or in theirs, which includes by the way includes the rare metals that go into the F-35.”
Here are Cramer’s comments about NVIDIA Corporation (NASDAQ:NVDA)’s H20 inventory problems:
“By the way, Cadence, that is, when people look at Cadence, the number one partner is NVIDIA. Now NVIDIA also has the story out there, but not confirmed by me, that there’s, the H20 orders from China are huge. There had been some talk that maybe they wouldn’t be. Cadence is a fantastic company. And I think that was the sign that NVIDIA is in great shape in China. NVIDIA’s doing so well, what are you going to do? It just keeps, it’s just relentless.”
5. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders In Q1 2025: 155
Mastercard Incorporated (NYSE:MA) is a payments processing firm whose shares have gained 8.6% year-to-date. The shares have struggled recently due to investor fears about the impact on the firm’s business model from stablecoins. Mastercard Incorporated (NYSE:MA)’s shares dipped by more than 9% in June once stablecoin legislation started making rounds in Congress. Cramer discussed the firm’s recent earnings report:
“[On strong performance]Well, that’s Michael Miebach. He just does double digit after double digit after double digit. He continues to be incredibly impressive. The CEO, they have continued momentum, very strong fundamentals. Great new partnership with American Airlines, they say, but also Uber.”
Cramer was also optimistic about Mastercard Incorporated (NYSE:MA) in his earlier remarks. Here is what he said:
“Okay, this is a very hard question because Visa and MasterCard are valued much more highly, I think, than American Express in terms of PE multiple. I want American Express of these three, and I’ll tell you why. I think America’s Express has got this younger demographic that is really exciting and not really built into the price-to-earnings multiple. That said, look, these are all great companies… I met with Mastercard’s management this week. I talked with Visa’s management. You’re not going to go wrong owning any one of these companies. They’re three of the best companies in America.”
4. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders In Q1 2025: 92
PayPal Holdings, Inc. (NASDAQ:PYPL)’s shares have lost 21% year-to-date as the firm has struggled to to worries about the impact of tariffs on the American economy and on retail spending. Cramer’s previous comments about the firm have mentioned these headwinds, and PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock fell by 14% in late July and early August after it reported its second quarter earnings. The shares fell despite a revenue and earnings beat as investors fretted about higher expenses and slower transaction volumes. Cramer linked PayPal Holdings, Inc. (NASDAQ:PYPL)’s results with US economic performance:
“PayPal, very important. Cross border volume up 15%. That cuts to the economy being very strong.”
Earlier, he discussed the impact of tariffs on PayPal Holdings, Inc. (NASDAQ:PYPL):
“It’s entirely possible that the negative effects are one-time only and will go away as we get more trade deals, but right now, we’re in the thick of it. You know what? It just doesn’t feel good, and honestly, it’s hard to dismiss them… [as] one-off when even fintech giant PayPal revealed slower growth in payments, blaming tariff fears.
The Chief Financial Officer, Jamie Miller, said, and I quote, ‘We observed a slight softening in retail spending in the US, most apparent in areas likely impacted by tariffs.’ After all the robust consumer spending we saw when the banks reported two weeks ago, I was surprised by the news from PayPal, so was the market, with the stock falling more than 8%. I say ouch.”
3. Shake Shack Inc. (NYSE:SHAK)
Number of Hedge Fund Holders In Q1 2025: 39
Shake Shack Inc. (NYSE:SHAK) is an American fast food chain. Its shares dipped by a stunning 20.6% following its second quarter earnings despite the fact that the firm’s $356 million in revenue and $0.44 in EPS beat analyst estimates of $354 million and $0.38. Cramer attributed the dip to the current crisis in the US beef industry:
“[I’m trying to keep things balanced here and get the consumer weaker the enterprise stronger. Shake Shack, which is a marvellous company, Rob Lynch terrific operation. The stock is down 23 points. Now why is that? One single line, ‘beef prices now up low teens’ the herd is wrong, you’re seeing anyone who is connected to the beef industry really struggling. It’s worth it to point out that there is a price point that people won’t pay for beef. And it looks like Shake Shack, an excellent firm is starting to bump up against that.”
Here are his comments about Shake Shack Inc. (NYSE:SHAK) made later during the day on Mad Money:
“Or what about Shake Shack? Terrific company with a stock that took a real header today, down 14%. As I go over the conference call, I came across this fly in the ointment, ‘The majority of the commodity situation is in beef, and obviously we sell a lot of beef.’ Boom.”
2. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders In Q1 2025: 78
Chipotle Mexican Grill, Inc. (NYSE:CMG)’s shares dipped by 13% after the firm’s second quarter earnings. The results saw the firm’s $3.06 billion revenue miss analyst estimates of $3.11 billion while its $0.33 EPS met the estimates. Chipotle Mexican Grill, Inc. (NYSE:CMG) has consistently struggled with lower sales, and here’s what Cramer believes went wrong this time:
“Chipotle, another one, bumping up against a too expensive price. People are not perceiving the value like I said. A wealthy person doesn’t think twice about this, a person on a stretch budget, like the person who can’t pay for the braces, is saying hey, I’m gonna go for the five dollar McDonald’s burger. So it’s just worth keeping in mind the two different economies that we have right now, very, very different.”
Previously, the CNBC TV host discussed Chipotle Mexican Grill, Inc. (NYSE:CMG) in detail:
“Everything’s changed since COVID, but we just keep acting like it hasn’t. We always seem surprised when we hear that higher prices are hurting demand and a company isn’t doing that well. That’s how I felt about the plummeting price of Chipotle stock. I was checking it out after talking with Brian Niccol, the current CEO of Starbucks, who came over from Chipotle about a year ago. When Brian left, the stock was at 56. The S&P 500 was at 5,648. Now the stock’s at 43 and change. Well, the S&P’s at 6,362. Well, what’s happened here? It’s not the in-store experience. Chipotle’s the same place it was always. It’s just gotten a lot more expensive…
Look, I’m not trying to pick on Chipotle, and I recognize those prices are all over the map given their crowdsourced nature. So many restaurants, so many kinds of stores, so many homes, so much entertainment… the same problem. But to not relate Chipotle’s stock price to what’s happening with the prices, well, that’s just fanciful. The consumer’s just paying a lot more, and nobody likes that.”
1. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders In Q1 2025: 93
Costco Wholesale Corporation (NASDAQ:COST) is a discount retailer and one of the largest of its kind in America. Its shares The shares are up by 3.8% year-to-date as they are yet to recover from their massive 15% drop in March. The March dip came after a poor earnings report, and Costco Wholesale Corporation (NASDAQ:COST)’s stock also dipped in June after its May same-store sales growth fell short of analyst estimates. Here’s what Cramer said about the firm:
“It’s good to see that Costco is finally reacting. It’s been a very big disappointment, short term, but not long term.”
Cramer was upbeat about Costco Wholesale Corporation (NASDAQ:COST) in his previous remarks:
“Well, you know what, I am glad you called me on Costco. I was just, I was actually kind of mulling over this one with Jeff Marks, my colleague on the club, and I have to tell you, I am sick and tired of the stock going down. People feel 51 times earnings is too expensive. I think that’s wrong. I think they’re doing everything right. Every check indicates to me that it’s time to start buying some if you don’t have any, and if you have some, perhaps you should buy some more.”
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