13 Stock Predictions That Jim Cramer Got Completely Wrong

5. AeroVironment, Inc. (NASDAQ:AVAV)

Number of Hedge Fund Holders: 21

A caller asked Cramer about AeroVironment, Inc. (NASDAQ:AVAV), a defense tech company known for its unmanned drones. Cramer praised its cost-effectiveness and saw it as a smart play in the current defense landscape. Here’s what he said back then:

“Absolutely, and here’s what you need to know: we have a lot of very expensive military equipment that is just way, way too expensive. And then we’ve got the stuff that AeroVironment makes, and that’s the bargain. And it’s about time that the Pentagon started looking at the guys who don’t cost us an arm and a leg—because our enemies have very inexpensive drones, we can have them too.”

Cramer’s bullish thesis didn’t pan out, with the stock falling 11.89% despite its defense appeal.

AeroVironment, Inc. (NASDAQ:AVAV) develops unmanned aerial systems and tactical missile systems for defense applications. Addressing the company’s struggles, Cramer had this to say a few days ago:

“Well, it was up seven today.  Look, I’ll tell you the problem here…. It’s a stock. I know that sounds a little soporific, but stocks are going down particularly high multiple stocks… We could have, we could have Wahid Nawabi on right now and he could tell us how things are going and things are going great. It just doesn’t matter. People don’t want to own the defense stocks right now. They feel that defense budget’s going to be cut. I don’t agree, but that’s what’s happening.”