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.”
9. Astera Labs, Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 45
Astera Labs, Inc. (NASDAQ:ALAB) is one of the stocks on Jim Cramer’s radar. A caller asked if they should buy, sell, or hold the stock, and Cramer replied:
“It’s too hot for me. It’s too hot for me…. I’ve gotta tell you, everything that you’re worried about, I’m worried about. I know it’s a straight-up stock. I’m willing to back Palantir as a straight-up stock. I can’t have two, more than one of these right now.”
Astera Labs, Inc. (NASDAQ:ALAB) develops semiconductor-based connectivity solutions for cloud and AI infrastructure. The company provides high-speed interconnect products, management software, and networking solutions for hyperscalers and OEMs. During a May episode, Cramer called it an “incredibly well-run” company, as he said:
“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.”
8. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 42
Albemarle Corporation (NYSE:ALB) is one of the stocks on Jim Cramer’s radar. During the lightning round, a caller asked about the company, and Cramer commented:
“No, it’s too, we’re not going to go there. It’s too volatile and too hard to actually nail down. I’m going to say skip that one.”
Albemarle Corporation (NYSE:ALB) produces lithium compounds and other specialty chemicals for applications in energy storage, mobility, and other industrial uses. The company also provides catalysts, bromine products, and recycling services. Cramer mentioned the company in a June episode and said:
“Next is Albemarle. This is a chemical company that produces lithium. I honestly don’t know where this one’s coming from. We haven’t suddenly seen a surge in electric vehicle sales that I’ve seen, or any tax credits in the Congressional bill. It’s a broadening out mystery, could be happening.”
7. Sportradar Group AG (NASDAQ:SRAD)
Number of Hedge Fund Holders: 31
Sportradar Group AG (NASDAQ:SRAD) is one of the stocks on Jim Cramer’s radar. During the episode, Cramer mentioned the stock and said that he has “been a big fan” of online sports betting platforms. He remarked:
“I’ve been a big fan of the online sports betting platforms like DraftKings, Flutter, but lately the biggest winner in the space has been Sportradar, which is like an arms dealer to the sports book operators. Sportradar provides them with the data they need to make the odds. I recommended this one, you know, back in October, I said buy it at 12, and now it’s at 29. But when Sportradar reported last week, even though the quarter looked good, the stock shed 5.7% Since then, it’s recovered from its lows. So maybe the stock was simply due for a pullback after some huge gains.”
Sportradar Group AG (NASDAQ:SRAD) provides sports data, technology, and content solutions for the betting and media industries. The company offers betting platforms, streaming services, integrity services, and performance analytics.
6. Joby Aviation, Inc. (NYSE:JOBY)
Number of Hedge Fund Holders: 23
Joby Aviation, Inc. (NYSE:JOBY) is one of the stocks on Jim Cramer’s radar. During the episode, a caller inquired about the company, and Cramer said:
“Okay, I know Joby. I recommended it [at] 7. Now, remember Joby did buy a part of Blade that I think is an expensive part, which is consumer. I do believe that what they should do is raise money. If I were them, I would do a gigantic equity offering. And if you did that, then I would say that… that’s what you have to do. You have to strike when the iron’s hot. Let them, they offer some stock, or let it come in. But I’m with you… I see where it’s going. Let’s go buy it.”
Joby Aviation, Inc. (NYSE:JOBY) develops electric vertical takeoff and landing aircraft for aerial ridesharing services. The company is also creating an app-based platform for booking air transportation. In a July episode, Cramer mentioned the company and said:
“Same with Joby Aviation, known to some as the flying car company. I was hesitant to say anything positive about this one. It had gone straight up for six to eight bucks, but then I read that Boeing had a flying car too, one with a vertical takeoff feature, and I believe that Joby is ahead of Boeing, so I recommended it on a small pullback. Next thing you know, the stock’s at 17 and change, more than a double. Again, the parabola fear, wrong.”
5. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 55
Carnival Corporation & plc (NYSE:CCL) is one of the stocks on Jim Cramer’s radar. When a caller asked if they should wait to invest in the stock, Cramer replied:
“No, no, no, no, no. You just, you can’t wait. You can’t wait with these stocks. They’re momentum stocks. But I agree with you, they’re bargain stocks too. Royal Caribbean, people were like saying, well, listen, I’m going to wait a little more for Royal Caribbean to go down. And did you see that stock today? I mean, the people today were saying, what was I doing waiting? Here’s what you do… You go and you buy, say, even for Royal Caribbean or Carnival, let’s buy, let’s buy four or five, if you want to buy 200 shares, let’s buy 50, okay? And then see if it comes down. But you get your 50.”
Carnival Corporation & plc (NYSE:CCL) operates cruise lines and related leisure travel services under brands such as Carnival Cruise Line, Princess Cruises, and Holland America Line. The company also operates port destinations, hotels, and other travel-related assets.
4. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 54
Expedia Group, Inc. (NASDAQ:EXPE) is one of the stocks on Jim Cramer’s radar. Cramer discussed the company’s earnings during the episode and said:
“So, how about Expedia Group? They too had very strong numbers for the second quarter… Now, unlike Airbnb, though, Expedia gave unambiguously robust guidance for the current quarter. Management also raised their full-year forecast for gross bookings and revenue growth… Expedia, on the other hand, gave us outright beat and raise quarter and talked about stronger than expected margin expansion going forward… After going through both reports, there are a couple things that I think really explain why Expedia is suddenly liked while Airbnb is very much disliked after those results.
First, Expedia is an online travel agency. It’s got this B2B… division… That’s really important because Expedia’s business-to-business division is the best part of the company right now. In the second quarter, their B2B unit saw gross bookings growth of 17% year over year and revenue growth of 15%. The larger business-to-consumer division, on the other hand, had just 1% gross bookings growth and 2% revenue growth. In other words, business-to-business accounted for almost all of Expedia’s growth… The strength in business-to-business is also what gave Expedia the confidence to issue better than expected guidance for the third quarter, and raise its full year forecast…
What else? I’d say that at least right now, Expedia seems to have a clear focus on its mission…
Expedia is the place where people go to compare prices and find their best value for their travel options, their flights, their hotels, their rental cars… Expedia, on the other hand, is simply focused on execution, and that’s working as consumers keep coming to their platform to get the best prices when they want to travel…
So let me give you the bottom line of this very complex story: There’s a reason why Airbnb stock tumbled after earnings while Expedia soared the very next day. Expedia had a pure beat and raise with very little hair on it, while Airbnb had a beat, but also gave investors some reasons to worry about its guidance. Plus, Expedia’s got an advantage with much more business-to-business exposure than… [Airbnb]. At the end of the day, I think Expedia’s thriving because of its laser focus on value, while Airbnb is making a bunch of big bets that may or may not pay off in this environment. I say stick with what’s working. I say stick with Expedia.”
Expedia Group, Inc. (NASDAQ:EXPE) operates an online travel platform and provides lodging, transportation, and vacation rentals through brands like Expedia, Hotels.com, and Vrbo.
3. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 66
Airbnb, Inc. (NASDAQ:ABNB) is one of the stocks on Jim Cramer’s radar. Cramer highlighted that the company’s earnings did not meet the high expectations the market had for it, as he remarked:
“Long story short, while the second quarter numbers were strong, Airbnb’s guidance was more guarded… which made investors worry that management was bracing itself for a slowdown… And if they’re going into a slowdown, then it’s hard for Wall Street to get excited about these new growth initiatives… Basically, Airbnb gave us a, what’s called a beat and meet quarter and signaled that its margins would likely contract in the back half of the year. We’re no longer paying up for these kinds of stocks, and in many cases, we run from them… Airbnb is the more richly valued of the companies, trading at almost 29 times this year’s earnings estimates.
In other words, the one that is the most valued was the one that’s went down the most… They’re more than double the multiple of Expedia, that kind of tells you what’s going on here, which sells for only 14 times earnings, okay? Those multiples, by the way, are after Airbnb’s pullback and Expedia post quarter. So Airbnb’s almost twice as costly, alright? Needless to say, when you have a higher multiple, more is expected of you, and Airbnb didn’t meet those elevated expectations, hence the decline…
I gotta tell you, Airbnb is really still just a consumer story… Remember, we are in an environment where the consumers clearly become more value-conscious, and Airbnb’s betting on businesses that require consumers to open their wallets… Of course, I’ve always felt that at its core, Airbnb represents tremendous value…
So let me give you the bottom line of this very complex story: There’s a reason why Airbnb stock tumbled after earnings while Expedia soared the very next day. Expedia had a pure beat and raise with very little hair on it, while Airbnb had a beat, but also gave investors some reasons to worry about its guidance. Plus, Expedia’s got an advantage with much more business-to-business exposure than… [Airbnb]. At the end of the day, I think Expedia’s thriving because of its laser focus on value, while Airbnb is making a bunch of big bets that may or may not pay off in this environment. I say stick with what’s working. I say stick with Expedia.”
Airbnb, Inc. (NASDAQ:ABNB) operates an online platform connecting hosts and guests for booking accommodations and experiences.
2. D-Wave Quantum Inc. (NYSE:QBTS)
Number of Hedge Fund Holders: 13
D-Wave Quantum Inc. (NYSE:QBTS) is one of the stocks on Jim Cramer’s radar. During the episode, Cramer mentioned the company and discussed the quantum computing sector. He commented:
“This market’s going into a speculative frenzy, people racking up huge gains in quantum computing stocks, even as the technology’s still in its infancy, but maybe it’s closer than we think, but I’m not scolding you. I want to take the speculation seriously because maybe it’s not that speculative after all, which brings me to D-Wave Quantum, a stock that’s up nearly 2000% over the past 12 months. I want some of that. Last Thursday, D-Wave reported. Honestly, I’m not quite sure what to make of the numbers. I’d rather just play with an open hand. Company’s touting the fact that bookings were up 92% year over year. That’s terrific. But like I said, quantum computing is still very early; that’s why booking stood at just 1.3 million… At the same time, the company’s losing big money, but you know, it has big money. So maybe, so what? So you can understand why more traditional investors look at this struggle to justify D-Wave’s more than $6 billion market capitalization, but not me, because I’m open-minded. I want to find out what’s going on. If this is the technology whose time has come, then it makes sense.”
D-Wave Quantum Inc. (NYSE:QBTS) develops quantum computing systems, software, and cloud services for solving complex optimization, logistics, and discovery problems.
1. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the stocks on Jim Cramer’s radar. A caller asked if Cramer sees the stock as a long-term holding, and he replied:
“Yes, I do. I think that Nikesh Arora is being wildly misinterpreted by his… you know, he just bought CyberArk, which is a company that I’ve liked for like, I don’t know, since we started the show, no, maybe 15 years. And he bought it, and all these people are saying, oh, it must mean something’s wrong. Are you kidding? Hey, by the way, the stock is finally down ahead of the quarter, which I think is actually going to help us. We own it for the Charitable Trust.”
Palo Alto Networks, Inc. (NASDAQ:PANW) delivers cybersecurity solutions, including network, cloud, and security operations for threat prevention, detection, and automated response. The company provides virtual firewalls, threat intelligence, and professional services. When a caller inquired about the stock during the August 5 episode, Cramer replied:
“Palo Alto is a buy here. We were going to buy some for the Charitable Trust. I can’t emphasize enough. This stock is now down from 210, I think you got a real good idea.”
While we acknowledge the potential of Palo Alto Networks, Inc. (NASDAQ:PANW) as an investment, our conviction lies in the belief that 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 PANW and that has 100x upside potential, check out our report about this cheapest AI stock.
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