On Tuesday, Mad Money host Jim Cramer reviewed the day’s market performance and urged investors not to let geopolitical tensions distract them from the bigger picture.
“It happened again. Investors, egged on by negative commentators in their media echo chamber, drowned in a wave of pessimism last week, and you know what? They missed one of the best days of the year today. People just can’t seem to process the most important three words in the investing lexicon: Stay the course. Nobody wants to stand pat when they think they can get out and then jump right back in.”
READ ALSO: 7 Stocks Highlighted by Jim Cramer in the Lightning Round and Jim Cramer Recently Shed Light on These 13 Stocks.
Cramer stressed that much of the anxiety swirling around current events often has little to do with what actually drives stock performance, company earnings, and fundamentals. He emphasized that many businesses are generating record profits and providing significant returns. He noted that investors are missing out because they are overly influenced by political noise and fear-driven narratives.
Cramer credited leaders like Jensen Huang and Tim Cook for adapting their operations to challenging circumstances, including supply chain disruptions and unpredictable political developments. He argued that the companies have not only navigated those challenges effectively but have done so in ways that continue to create value for shareholders.
“They want to make you rich. You’re not letting them… They’re too busy selling stocks because they think the Republic is on fire. But even if they were right, that’s not actually even a reason to sell stocks then. The market simply doesn’t care about this stuff, people. So from a money management perspective, you can’t let it get in your head, even as from a personal point of view, it lives there. I don’t care.”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on August 12. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the first quarter of 2025, which was taken from Insider Monkey’s database of 1,000 hedge funds.
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).
11 Stocks on Jim Cramer’s Radar
11. Cerence Inc. (NASDAQ:CRNC)
Number of Hedge Fund Holders: 18
Cerence Inc. (NASDAQ:CRNC) is one of the stocks on Jim Cramer’s radar. Cramer mentioned the stock during the episode and had some positive things to say about the company’s CEO, Brian Krzanich. He stated:
“When research director, Ben Stoto, and I played around with the company’s website, wow, Cerence could respond, interact, and unlike Alexa, handle interruptions with a plum… Now here’s what really matters: Cerence is just a $472 million company… Brian’s a big-time CEO at a small-time company. He ran Intel, and then after that, ran CDK Global. He then sold CDK to Brookfield, a private equity firm, for 30% premium versus where the stock was trading before they made the bid.
I know Brian’s cleaning up Cerence AI like he cleaned up CDK. He has no desire to sell. He wants to build, and I think he will because his voice technology’s superior to anything I’ve seen. To me, this is the kind of situation where you could win either way. The market’s red hot. You don’t want to buy something that’s already had a great deal of a run, but at one point, Cerence, the stock, traded at more than 10 times what it sells for right now. And while it had much better profitability back then, I think the current version has got more upside.”
Cerence Inc. (NASDAQ:CRNC) develops AI-powered virtual assistant solutions for the transportation industry. The company also provides edge and cloud-based software, integration, and professional services.
10. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 70
Equinix, Inc. (NASDAQ:EQIX) is one of the stocks on Jim Cramer’s radar. A caller asked for Cramer’s thoughts on the company during the lightning round, and he stated:
“Equinix is still too expensive. That’s the commodity side of this business. I don’t want you in the commodity side. If it came much lower, we would take a really hard look at it.”
Equinix, Inc. (NASDAQ:EQIX) provides a global digital infrastructure platform that interconnects organizations with partners, services, and markets. Baron Real Estate Fund stated the following regarding Equinix, Inc. (NASDAQ:EQIX) in its second quarter 2025 investor letter:
“In the most recent quarter, we purchased additional shares in Equinix, Inc. (NASDAQ:EQIX), the premier global operator of 270 network-dense, carrier-neutral colocation data centers with operations across 36 countries and 6 continents. We acquired shares at what we believed were compelling valuation levels. Shares retrenched, however, in the last few days of the quarter due to the company outlining incremental capital investments at its bi-annual Investor Day that will depress near-term growth but pay dividends longer term.
Though we are encouraged by the expanding growth drivers for Equinix, management’s updated five-year earnings growth outlook was below investor expectations. While top-line growth is encouraging, the company is ramping up capital investments over the next several years, which will dampen per share cash flow growth over the next two years, in particular. This led to a material initial sell-off in the shares. While the near-term growth prospects are disappointing and below our expectations as well, we believe the company is taking the right steps to position the business for higher growth ahead. Given Equinix needs to bring on new data center facilities to fulfill the demand signals they are seeing from customers, there is an initial drag on earnings while the data center is built and then stabilized. We bucket our current view of Equinix in the Baron investment framework where the company is taking “short term pain for long-term gain.” Equinix has built a highly valuable inter-connected ecosystem and thus enjoys premium pricing and outsized returns on capital. Furthermore, the balance sheet remains well-positioned to fund this investment with ample debt capacity and no need for external equity.”
