In this piece, we will look at the stocks that Jim Cramer recently discussed.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed the recent Bitcoin price jumps. Bitcoin set a new record in July after its price crossed $118,000, with some of the jump attributed to institutional investors. However, Cramer attributed the price gains to individuals as he shared:
“No, people are going to say, they’re speculative, they’re speculative, they’re speculative. Look, it’s been, it’s led by individuals. . . .look I know, and I don’t want speculation. And, Santolli did a really good piece yesterday about speculation. And how much. You want it to come down but you don’t want it to be the leader, the market is overbought. But please respect the fact that the individual investor thinks that this is an amazing time. And that they have a President that stands up for American business. Even though I think all of us know that that’s not every business.”
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 9th.
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).
14. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders In Q1 2025: 328
Amazon.com, Inc. (NASDAQ:AMZN) struggled at the start of the week as investors worried about the firm’s highly anticipated annual Prime Day shopping event. However, Cramer defended the stock and added that most sales are typically during the final few days of the season. He also discussed technical trading terms and asserted that they have never made him any money:
“The bargains are incredible. But everyone was bad, everyone was bad mouthing Amazon, you know the numbers were bad. . .But there’s four day, this is not the typical, people think that maybe if you wait for the last day it’s a better bargain. Now maybe one of the things that is really interesting is that there is a Saks bar right in the middle. . . that does not make me feel great about Saks.
“And we’ve got, you’ve got multiple days. You also have some of things are just like. . .I mean they’re giving stuff away. By the way, that new Visa card, I’ve had the Sapphire, get rid of that, the Visa card is terrific. Jassy has thought of a lot of things, but no he’s, he doesn’t get any credit. Uh huh.
“Two things I want to emphasize. I don’t believe in the death cross and the golden cross. They never made me any money. And I’m not going to buy, I wanna buy Amazon because I think that the, I check Prime every minute, and I’m seeing more and more deals. I mean people, if you don’t check Prime every four hours, I don’t know what your problem is. I mean you’re not American.
“Plus I think Alexa Plus. . .she’s amazing. She knows classical, I mean she knows the difference between Jupiter symphony and like the Red Eye Jupiter. I mean she’s like smart. . .well now they got rid of Alexa’s voice, you can get any voice you want.”
Cramer also believes that Amazon.com, Inc. (NASDAQ:AMZN) is quite important for inflation in America, as he remarked during an earlier appearance:
“Well look I think that, in my speech that I’m giving on Friday, I talk about the idea of, there’s inflation brought on by tariffs and then there’s deflation brought on by Andy Jassy. And we have to start recognizing these stupid things that we get, for the CPI, PPI. . .Do they really take into account Amazon Prime? I mean take a look at the things that are about to be on sale . . .but these are really anti-inflation. And it just should matter. And no president has ever, I tried to get the Biden people to say why don’t you say something good about Costco, and they’re like, what are you talking about, I mean well a 150 million people is a huge number of people that belong to Costco.Why don’t you talk about Prime? None of the politicians want to touch anything good that we seem to do as business people.”
13. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders In Q1 2025: 62
Caterpillar Inc. (NYSE:CAT) is one of the largest agricultural and construction equipment providers in the world. Typically, this means that the stock’s performance is tied to the economy, with lower rates and more construction activity acting as tailwinds for the shares. However, Caterpillar Inc. (NYSE:CAT)’s shares are up 12.6% year-to-date as the firm has benefited from investor sentiment about data center construction. Cramer discussed Melius Research’s latest coverage of Caterpillar Inc. (NYSE:CAT):
“[On Melius upgrading the stock] Yeah and that’s Cummins, too. . .I do believe that if you are involved in the buildout, like we have a big decision in the charitable trust for Eaton, you’re making a lot of money because the buildout does not stop. And GE Vernova is still the biggest I think because you have to have nat gas. We’d love to have it all based on wind, well but not the President.”
“[On Melius pointing out that bubbles remain a worry] Well what are you going to do when you out one of those up, they really, they really like CAT. . . .look I think that the buildout, you can’t do what Amazon wants, and Alphabet wants, and, of course what Musk wants, what Zuckerberg wants, without more data centers. It’s just a, it’s remember, Jensen Huang, it says it’s an industrial revolution, and it would be like if you were doing steam engines and you said you know what we don’t need as many steam engines, I can predict.”
Earlier, the CNBC TV host also discussed Baird’s discussion of the stock:
“I was going to do Caterpillar, Hold to Buy. That was a good piece. Baird had fought it every step of the way, the reason I didn’t do it is I didn’t want to make fun of the guy for being completely wrong.”
12. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders In Q1 2025: 36
CoreWeave, Inc. (NASDAQ:CRWV) is an AI and cloud computing infrastructure provider. It is one of the strongest-performing stocks of 2025 as the shares have gained 226% since their IPO in March. CoreWeave, Inc. (NASDAQ:CRWV) has benefited from market optimism about AI as investors believe that the firm can benefit from sustained long-term AI demand and its early mover advantage in the AI infrastructure space. CoreWeave, Inc. (NASDAQ:CRWV) also recently announced that it would acquire Core Scientific, and Cramer commented that the deal made him optimistic about the overall dealmaking environment in America. Here are his recent remarks about CoreWeave, Inc. (NASDAQ:CRWV):
“You speak to CoreWeave, you speak to Michael Entrator, who’s a terrific guy. Uh, he would say look, we can’t put ’em up fast enough. And, we are, they’re valuable even after they do not have the latest and greatest. People do not understand that. This is not the 386 going to the 46 going to the Pentium, you can’t throw these away. They work. There’s always some use for even the oldest ones. So they pay themselves back.”
In his earlier remarks, Cramer commented on CoreWeave, Inc. (NASDAQ:CRWV)’s latest deal and his meetings with management:
“Yes and they’re all over me today. CoreWeave is saying that this helps them immensely in terms of the amount of power they have and it’s actually a good deal for their finances. The stock’s turned up, they were up big on, well CoreWeave was up big, and it’s given back that. This is the kind of deal that if I were Lina Khan at the FTC, I would say wait a second, Core and Core? No. We will not let a core merge with a core. . . No I mean to being facetious, but not really, in someways because I think she would say these are two companies that could compete. Which is true. But I think that this is the kind of deal that we ought to get used to having. It’s one of the things that makes me bullish. Which is that there’s not any, you know you can make a deal if you think it’s rational and not expect to be challenged. Now someone might say, you know Jim, that was really a cheap shot. No. The deference was cheap. The deference.
“I’ve got Michael Entrator. He has done a remarkable job, I don’t know if people care about CoreWeave anymore, but, Michael Entrator’s stock opened, it was at 40 and it went up to 156! You know, did people who buy that make money or did they just kind of say you know what, I’m glad I have my index fund but by the way, no. Ben Stoto and I were very positive on CoreWeave after meeting with the company and spending some time with them. Just very impressive people who were doubted and are doubted, there’s a very big short position. But you know what, they figured they have a, when you ask NVIDIA what do you think of them, and NVIDIA bought a quarter of that IPO, NVIDIA would say great partner, great partner.
“Entrator, I mean I remember you know he said listen I need three hours, and then he took five hours, and I was like alright, you know, I got nothing else to do other than talk about the market. Everything else can be on hold.”
11. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders In Q1 2025: 96
The Boeing Company (NYSE:BA) has seen its shares turn the tables on the bearishness in 2025. While production woes and the resulting delivery problems led the shares to drop by 31% in 2024, so far in 2025, the stock has gained 32.5% year-to-date. The Boeing Company (NYSE:BA) has benefited from improving cash flows and improved production and deliveries so far. In his earlier comments about the firm, Cramer has speculated that the shares are also benefiting in an idea-driven market that is influenced primarily by retail investors. He maintained the sentiment in his recent remarks:
“Look I mean we want to be able to get that short end, We have a lot of breakouts, CAT’s breaking out, Boeing has been breaking out. It’s a furious breakout. These are retail names, these are not institutional names.”
Earlier, Cramer shared how The Boeing Company (NYSE:BA) is in an idea-driven market:
“I just think that we need to recognize that we are not in a Fed market, we’re in a market where people say. . .Uh, okay looks like the aerospace is doing well, oh okay, well let’s buy Boeing. . .This has not happened since the 90s, David. And there’s a plethora of people who are fighting this and not realizing, because they’re so index oriented. They don’t realize what is really happening here is that people are focusing on themes.”
10. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders In Q1 2025: 93
Merck & Co., Inc. (NYSE:MRK) is one of the largest pharmaceutical companies in the world. The firm has benefited from its KEYTRUDA cancer drug over the past couple of years. However, Merck & Co., Inc. (NYSE:MRK)’s shares have lost 16% year-to-date, primarily on the back of weak earnings reports and worries about the firm’s GARDASIL drug. Cramer discussed Merck & Co., Inc. (NYSE:MRK)’s drug portfolio and pointed out that the firm can benefit from a robust pipeline, particularly after the acquisition of a COPD company:
“Yeah, I talked to Rob this morning, really liked this. He thinks he’s got about 50 billion dollars worth of new drugs, which would therefore make it so you should stop worrying about the Keytruda patent expiration in 2028. I am with Rob. I think this COPD is a really important, another important franchise for them the alternative use steroids. And we’ve all be discovering that if you have trouble using steroids, one it becomes less effective over time, and two, the side effects are much worse than people realize. So I think this is a first in class, novel, compound that will make it so, see Merck’s up because we’re starting to get less worried about the expiration. And you know, Rob, I appreciate the fact that Rob is doing the old days, which is you go look at what the younger companies are doing and then you buy them. . .I like this acquisition very much.”
However, after Merck & Co., Inc. (NYSE:MRK)’s Q1 report, Cramer was worried about the firm:
“This is an earning season so far where a lot of the big ones that look like they’re just shockingly bad or disappointing—everyone knew. I mean, Merck reported a quarter, I think we all kind of knew that Keytruda had slowed down a little bit. We knew that there were some Gardasil problems.Winrevair, drug that they bought—pulmonary arterial hypertension—I thought it was terrific, 280 million. So I think that this is an example where you can just say, oh my god, damn, Merck down almost 40%. I got to—I, I, I got to take a hard look at it.”
9. Verona Pharma plc (NASDAQ:VRNA)
Number of Hedge Fund Holders In Q1 2025: 51
Verona Pharma plc (NASDAQ:VRNA) is a small biotechnology company that focuses on respiratory diseases. Its shares rocketed by 20.6% in July after pharma giant Merck announced that it would buy the firm for a $10 billion price tag. However, even before the acquisition, Verona Pharma plc (NASDAQ:VRNA)’s shares were up by a strong 80%. The stock has been helped by improving revenue and shrinking losses, which are good performance indicators for upstart biotechnology and pharmaceutical companies. Cramer’s comments about Verona Pharma plc (NASDAQ:VRNA) covered Merck’s acquisition:
“Yeah, I talked to Rob this morning, really liked this. He thinks he’s got about 50 billion dollars worth of new drugs, which would therefore make it so you should stop worrying about the Keytruda patent expiration in 2028. I am with Rob. I think this COPD is a really important, another important franchise for them the alternative use steroids. And we’ve all be discovering that if you have trouble using steroids, one it becomes less effective over time, and two, the side effects are much worse than people realize. So I think this is a first in class, novel, compound that will make it so. . .I like this acquisition very much.”
Earlier, the CNBC host had dubbed Verona Pharma plc (NASDAQ:VRNA)’s shares as speculative:
“That stock is a rocket ship. Again, very very speculative, because it loses a lot of money. Does have a couple things in the pipe that people like, but also has a huge amount of insider selling, frankly.”
8. Hims & Hers Health, Inc. (NYSE:HIMS)
Number of Hedge Fund Holders In Q1 2025: 41
Hims & Hers Health, Inc. (NYSE:HIMS) is a well-known digital health platform that allows users to order medicines after securing prescriptions. Despite multiple headwinds in 2025, the shares are still up by 93% year-to-date. Hims & Hers Health, Inc. (NYSE:HIMS)’s shares fell by 42% in February after the firm warned that it might be unable to maintain the availability of crucial weight loss drugs on its platform. Then, after the stock gained 61% by late June, it again crashed and lost 35%. This time around, Hims & Hers Health, Inc. (NYSE:HIMS) suffered as weight loss drug maker Novo Nordisk ended its partnership with the firm. As for Cramer, he commented on the firm’s business:
Hims & Hers by the way when you talk to doctors, you talk to people in the business, Hims & Hers is regarded as being a not great actor. I think they’re a good actor for the people.”
Earlier, the CNBC host had discussed short seller sentiment for Hims & Hers Health, Inc. (NYSE:HIMS):
“No matter how much you love these speculative winners, you don’t have a gain until you actually ring the register. At the end of last week, for example, Hims & Hers Health, the online healthcare company, was trading at $64. But then yesterday, the stock fell 22 bucks for an almost 35% decline… What I care about is that this stock… [has] almost tripled in two months. If you owned Hims & Hers up almost 200% and you hadn’t sold any at that point, you were being a knucklehead.
Why? Because this is one of the most heavily shorted stocks in the market. 35% of the shares sold short. A lot of people have been betting against it. The haters are plentiful. In that situation, the stock can erupt on any good news. And there was a lot of good news when HIMS was making money with the Wegovy deal.
But a lot of those gains came on the backs of the short sellers who were forced to cover or buy back the shares they sold short because they couldn’t take the pain. That’s why when a stock goes up that fast and there’s a big short position, you gotta generate some discipline here.”
7. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders In Q1 2025: 60
Novo Nordisk A/S (NYSE:NVO) is a Danish pharmaceutical company that was one of the earliest movers in the weight loss drug market. The shares have lost 21% year-to-date due to multiple headwinds. These include investor worries about the firm lagging behind US pharma giant Eli Lilly in the weight loss drug market, the surprise departure of its CEO, and troubles with its CagriSema weight loss drug’s trial. Cramer’s previous remarks about Novo Nordisk A/S (NYSE:NVO) have wondered why the firm fell behind Eli Lilly and hoped that activist investor interest in the firm would yield positive results. This time around, he discussed the firm’s decision to let its weight loss drug patent expire in Canada:
“By the way, nod there to Brandon Gomez, really, really good piece that Novo Nordisk, did not file, I think it’s patent correctly in Canada. And Canada’s a backdoor, Hims & Hers is right there.”
Cramer’s previous remarks about Novo Nordisk A/S (NYSE:NVO) discussed the firm’s weight loss drug business and activist investor interest:
[On activist fund Parvus building a stake in the company] How could they be so far behind? You know they were first, they were first mover. And then Lilly came along, Lilly by the way, still a great stock. But maybe this is going to shake up Novo.
“How about better science?. . . Because they fell behind Lilly!”
6. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders In Q1 2025: 119
Eli Lilly and Company (NYSE:LLY) is one of the most frequently discussed pharmaceutical stocks on Cramer’s morning show. Over the course of this year, the CNBC TV host has maintained that the firm enjoys a lead in the weight loss drug market and aims to further expand its dominance by developing a robust manufacturing base. Cramer also believes that Eli Lilly and Company (NYSE:LLY) will benefit from introducing a weight loss pill along with a strong pipeline of drugs that targets diseases such as hypertension. His recent comments focused on an analyst note:
“[On a Mizuho note saying POTUS would praise LLY and JNJ] I would love that, that won’t happen. You know why it won’t happen? See there’s someone in the health and human services department that’s not crazy about, about big pharma and the way we think about it. So there’s not going to be a party thrown for you at Lilly. You know that GLP-1 is not a favorite of RFK Jr. Not a favorite. So no, no party for them.”
Earlier, Cramer discussed Eli Lilly and Company (NYSE:LLY)’s CEO and investor expectations:
”David Ricks, if you spend time with him, has a view, of what should be done, that ends with the pill that you take every day, no shot . . but everyone’s thinking that he doesn’t have anything in the hopper. He’s got heart coming up, he’s going to have Alzheimer’s coming up, oh buy.
“It’s going be a trillion-dollar market cap, Ken Langone told me that. He’s one of the largest investors in Lilly. He knows.
“Oh my god I think that the heart failure stuff that’s coming out, I think that the blood pressure stuff that’s coming out, will they talk about liquor? I think that they don’t want to, but the craving of liquor is suppressed gambling is suppressed, biting nails is suppressed! Well, I’m just saying. But there’s going to be, I think even dementia in the end.”
5. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders In Q1 2025: 91
Johnson & Johnson (NYSE:JNJ) is one of the largest and most well-known pharmaceutical companies in the world. Its shares have gained a modest 8.9% year-to-date as the firm has struggled from headwinds such as a judge rejecting its $10 billion talc powder cancer lawsuit settlement. In his previous comments about Johnson & Johnson (NYSE:JNJ), Cramer has called the firm one of the “best-run companies in America” and praised its balance sheet and drug pipeline. This time around, he discussed the upcoming earnings report and an analyst note:
“[On a Mizuho note saying POTUS would praise LLY and JNJ] I would love that, that won’t happen. You know why it won’t happen? See there’s someone in the health and human services department that’s not crazy about, about big pharma and the way we think about it.
“JNJ, JNJ I don’t know. JNJ’s going to report this week they’ve got a talc problem still but I thought the President was going to act against the plaintiffs, probably has.”
As for Johnson & Johnson (NYSE:JNJ) ‘s balance sheet and pipeline, here’s what Cramer said:
“Or let’s consider Johnson & Johnson, triple A balance sheet, many drugs in the pipeline, one of the best-run companies in America, if not the world, with perhaps the most billion-dollar franchises of any pharmaceutical company I know, but JNJ only yields 3.55%, and it’s got this terrible legal overhang related to allegations that its talcum powder, no longer in the market, caused ovarian cancer. We don’t know how open-ended the claims are. Can you tolerate that risk? I’d love to say just go buy JNJ, but where? What price? That yield is no longer enough to compensate you for the risk, especially if you don’t know if RFK Jr dislikes some of their drug delivery mechanisms and formulas, so people are staying away from that, too, not just because of the bonds. JNJ… 3.3%.”
4. Carvana Co. (NYSE:CVNA)
Number of Hedge Fund Holders In Q1 2025: 90
Carvana Co. (NYSE:CVNA) is a used car retailer. It’s one of the best-performing stocks in 2025 so far, as the shares have gained a strong 72% year-to-date. Carvana Co. (NYSE:CVNA)’s stock has benefited from positive attention from analysts at Morgan Stanley and Piper Sandler, along with investors piling into used car stocks due to inflationary worries stemming from tariffs. Cramer’s previous remarks about Carvana Co. (NYSE:CVNA) have praised the firm’s business model and warned against detractors. His latest comments kept the optimism:
“We did a piece last night about how it’s not too late. Carvana is still the best. Carvana only has one percent of the market. The market’s the biggest of any market in the world. It’s a 50 trillion dollar market. I think that you want to be in Carvana even up here. And I know Ernie Garcia II is selling the stock, he’s been selling it before. Ernie Garcia III I think is a great visionary, he doesn’t get credit for it. Carvana goes higher.
“When it was like three dollars we had him on, it was like this thing is a juggernaut, when Apollo came in and gave them the money. So it could be even more than that.”
Here’s what Cramer previously said about Carvana Co. (NYSE:CVNA):
“I like it now. You always get it, look, there’s always some guy who wants to take it down. Now those of you who remember, we went long [on] Ernie Garcia, he’s the CEO, in these single digits. I said I had enough. This model’s great. I had bought a car with it.
It was an amazingly smooth transaction. I became a believer, and I have not backed away for one minute, and Ernie knows that. And I’m very proud of it, and we’ve been supporting it, and here it is at 305. Every time it’s gone down, like McDonald’s, we say buy. I mean, it’s just a terrific situation.”
3. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders In Q1 2025: 70
Starbucks Corporation (NASDAQ:SBUX) is a well-known American coffee chain that has embarked on a turnaround strategy under its CEO, Brian Niccol. The shares have gained 2.5% year-to-date as they are yet to recover from a 19.8% drop in April after President Trump’s Liberation Day tariff announcements. Despite investor wariness about the stock, Cramer continues to remain a fan as he is a strong believer in Niccol. In his recent remarks, he discussed share price movements and cautioned against going against the CEO:
“Remember when he came on, and the stock went to 75 then 71 and people didn’t believe Brian Niccol? I mean, Brian Niccol, who turned around Chipotle and made it one of the greatest countries on Earth? Betting against him is a huge mistake, and many people were.”
The CNBC host had discussed Niccol in his previous remarks as well:
“What Starbucks? Meeting with Brian Niccols, one of the firms met with him and I think that there are a lot of people who doubt Brian. I think why don’t I send those people an invitation to their own funeral? Barclays, 98 goes to 108, fundamental metrics.
“[On reporting surrounding a possible China sale] Okay so Brian told me. . .you once explained to me about how it works. That there is a lot of firms that will hire. . .whatever and say hey listen I’m exiting the Chinese business. Next thing you know you got a dialogue. And next thing you know, you hear about talks. Remember how you taught me that? That’s what this is. It’s like some people are saying hey listen I’m ready to buy. What Brian was I think kind of stunned by is that so many companies wanted.
“[On whether that would motivate him to sell] I know this sounds rare in this world, Brian will do what’s right. If he thinks that that’s a good thing, he will sell it. He has no agenda on this. He just wants to make a lot of money for shareholders. His main thing was the four minute Starbucks. He’s got it down. No one’s talking about this. It’s the most important thing he’s done. The throughput. He has it so that the time between order and cup, four minutes. People said that it couldn’t be done. People said it couldn’t be done with this labor force. I am so all in Brian Niccol. That he is, Brian Niccol is to coffee, as Jensen Huang is to semis.”
2. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders In Q1 2025: 75
T-Mobile US, Inc. (NASDAQ:TMUS) is an American telecommunications carrier whose shares have gained 4% year-to-date. However, the stock is down by 13% since late April, when a weak earnings report accompanied by lackluster subscriber figures led to an 11% loss. T-Mobile US, Inc. (NASDAQ:TMUS)’s stock also fell in June after Softbank announced that it would sell $4.8 billion worth of shares. Cramer has spent quite some time in 2025 discussing whether the firm’s CEO, Mike Sievert, is retiring. This time around, he discussed a Keybanc piece about T-Mobile US, Inc. (NASDAQ:TMUS):
“Here’s one [that’s] a little surprising. Keybanc puts out a very cogent piece about how T-Mobile is fiber-deficient. And they think that the consumer value proposition has deteriorated rather rapidly. Downgraded to Underweight. And the stock has been weak. But this is a, in many ways you read this and you think oh my bad, now I know why it’s going down. Which will mean that it’s got much further to fall.
“. . .But, look what can I say, T-Mobile has been a huge, huge winner. Sievert is a winner. And before that Legere was a winner. But now the stock acts quite badly, and now we know. It’s good to know the reason.”
Previously, the CNBC host discussed T-Mobile US, Inc. (NASDAQ:TMUS)’s CEO, Mike Sievert:
“We don’t know if he’s [Sievert] going to leave yet, we don’t know when, they’re not gonna put a release out. They’re not gonna put a release out. It’s not done and I hope he stays because I think he’s fantastic.”
1. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders In Q1 2025: 87
AT&T Inc. (NYSE:T) is a major American telecommunications carrier. Its shares have gained 18.5% year-to-date and outperformed some peers. AT&T Inc. (NYSE:T)’s stock has risen on the back of strong subscriber numbers. The firm reported in April that its Q1 postpaid subscriber figures sat at 324,000, which was a sizable beat over FactSet estimates of 255,000. In his previous comments about AT&T Inc. (NYSE:T), Cramer has praised the firm’s dividend. This time around, he commented that while AT&T Inc. (NYSE:T) is a good stock, he still prefers T-Mobile due to the latter’s management:
“You know, people like ATT. And I’m not against it. I like ATT, too. But, look what can I say, T-Mobile has been a huge, huge winner. Sievert is a winner. And before that Legere was a winner. But now the stock acts quite badly, and now we know. It’s good to know the reason.”
TCW Relative Value Large Cap Fund mentioned AT&T Inc. (NYSE:T) in its Q3 2024 investor letter. Here is what the fund said:
“AT&T Inc. (NYSE:T), based in Dallas, TX, is a nationwide provider of voice, video, and data communications services to businesses and consumers in the wired, wireless, and broadband. At initiation, the stock had a $141 billion market capitalization and met all five valuation factors with an above market dividend yield of 5.6%. From a sustainability prism, the company completed its commitment to invest $2 billion by the end of 2023 to help bridge the digital divide. AT&T is working on enabling low-income households to access to low-cost broadband services through its Access service plan as well as reaching out to more rural communities and Tribal lands where internet access remains a challenge. It is nearly 85% the way to providing one million people in need with digital resources through AT&T Connected Learning® with the goal to be reached by the end of 2025. In 2020, the company announced that it is committed to be carbon neutral by 2035 with zero carbon emission across all operations. It is deploying Smart Climate Solutions – through efforts like its Connected Climate Initiative – that will help enable its business customers to reduce their emissions as well. The company’s goal is to help collectively reduce its emissions by one billion metric tons – a gigaton – by 2035, compared to 2018 levels. The primary catalysts are new/strong management and restructuring. John Stankey was appointed CEO in July 2020 and he is committed to refocusing the company and improving its financial performance. The company combined its WarnerMedia operation with Discovery during 1Q:22 which eliminated AT&T’s exposure to the rapidly evolving media industry and refocused its core telecommunication business thus eliminating a major drag on profitability and the company’s balance sheet by reducing long-term debt from a peak $176 billion during 2020 to $142 billion at the end of June 2024 quarter. AT&T is moving aggressively to reduce cost and sell non-core assets such as its advertising platform Xander to Microsoft† which was accomplished during 2022. The company has redesigned its network to be software driven structure reducing the capital investment cycle in its national network – resulting in a network that is flexible with unrivaled speed and reliability – thus enhancing its nationwide position. By the end of 2023, it expanded its 5G network to reach more than 302 million people in nearly 24,500 cities and towns in the U.S. The company’s mid-band 5G+ network alone grew to cover more than 210 million people. AT&T is one of the largest investors in digital infrastructure in the U.S. Over the five years ending 2023, the company invested nearly $150 billion primarily in its wireless, fiber optics, and wireline networks. The extensive restructuring and refocusing of AT&T on its core business should result in improved earnings and cash flow while at the same time reducing uncertainty for shareholders.”
While we acknowledge the potential of T to grow, our conviction lies in the belief that some 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 T and that has 100x upside potential, check out our report about this cheapest AI stock.
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