In this piece, we will take a look at the 14 stocks that Jim Cramer recently talked about.
In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer continued to talk about the incoming Trump administration’s tariffs. Coupled with the Fed’s data-driven interest rates cycle, tariffs have created quite a stir on Wall Street as investors are wary of them contributing to inflationary pressures and making the central bank hesitate when it comes to reducing rates.
He believes that one of the key issues surrounding tariffs is the interconnection between the US and China. Cramer shared that “I know many business people have talked to President-elect Trump and they’ve said, ‘It’s not as simple as steel. Steel’s a hundred thousand people, I mean some of these companies have three hundred, four hundred thousand people themselves. I think the problem is we’re so intertwined and a lot of people felt, you know what, when President Trump, or when he was President Trump, you basically felt you were supposed to go from China to Mexico. Seemed like a good deal. And Mexico seemed like, favored.”
Since then, Cramer shared that the sentiment around Mexico has changed. According to him, the same people are now wondering “Why did we go to this country that apparently doesn’t like.” He also shed light on the relationship between China and Mexico and shared that “China and Mexico are strange bedfellows. China’s been flooding the country with autos! And, what we did was we moved all of our auto production down there! Also Germany, you go to Puebla, and it’s Volkswagen!” He added that this makes implementing tariffs tricky as “it’s just that the cars go back and forth, and back and forth, where, where do we put the tariff on? Where to we take it off?”
However, while the market might be worried about the broader impact of tariffs, businesses are also excited about growing merger and acquisition activity. Cramer outlined that “very quickly, people just say, you know what, look, tariffs are so convoluted that something has to happen. But the idea that they can talk to other companies and maybe combine, they want that so badly.”
Apart from his takes on stocks, some of Cramer’s most controversial views are of cryptocurrencies. While he doesn’t advocate completely shunning them, the tight-knit crypto community either panics when he’s bullish for Bitcoin due to the well-known inverse Cramer effect or wonders why he doesn’t advocate holding more crypto as part of a portfolio. In a recent episode of Mad Money, Cramer shared some of his latest thoughts about crypto:
“I’ve always endorsed keeping up to 10% of your portfolio in gold as a kind of insurance against the world’s lunacy. But for years now, I’ve also been saying Bitcoin’s a fine alternative to gold for that 10% position. Why not? I think the federal budget deficit is at impossible levels. I don’t want to be wedded to a currency backed by the full faith and credit of a country that owes $36 trillion.”
Cramer reiterated that there’s more to investing than simply “just owning cryptocurrencies.” In fact, he believes that buying stocks can potentially lead to an investor making more money than buying cryptocurrencies. “Bitcoin’s part of the most obviously diversified portfolio in recent history,” believes Cramer. “Buying and holding stocks can be just as lucrative as buying Bitcoin six days after Biden dropped out of the race. Or maybe, just maybe, it can make you even more money.” Another Mad Money episode saw him stress that he has held Bitcoin for years as Cramer shared:
“I want to discuss Bitcoin, really. I do—not to the detriment of stocks but in addition to stocks. I come to praise Bitcoin, not buy it. First, let’s dispel the idea that I’ve never believed in Bitcoin. Now, if you search YouTube, you can see that I first bought Bitcoin on September 15, 2020, when it was at just over $10,000.”
Our Methodology
To make our list of stocks that Jim Cramer is talking about, we listed down stocks he commented on during at latest episode of CNBC’s Squawk on the Street and tweeted about.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
14. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders In Q3 2024: 34
Moderna, Inc. (NASDAQ:MRNA) is the embattled biotechnology company that rose to global fame during the coronavirus pandemic. The firm’s fall from grace is the sharpest example you’ll find of the tough conditions in its industry. Pharma firms spend billions of dollars and years developing drugs. The heavy time and money investment means that their drugs have to generate value for years as well in order to recover costs and create space for developing new treatments. However, Moderna, Inc. (NASDAQ:MRNA) has struggled since the coronavirus pandemic. It is aggressively investing in R&D, with TTM expenses being $4.8 billion. While investing in growth is good, the spending is just $200 million short of the firm’s revenue. Cramer isn’t too happy with Moderna, Inc. (NASDAQ:MRNA) as he shared:
“Moderna, I guess is one of the great fizzles I’ve ever seen.”
13. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders In Q3 2024: 36
Ford Motor Company (NYSE:F) is one of the biggest car manufacturers in America. While car manufacturers do not perform well when the economy is sluggish, consumer spending is low, and interest rates are high as consumers have less money to fork out for expensive purchases, Ford Motor Company (NYSE:F)’s troubles in 2024 are also of the firm’s making. For instance, consider the firm’s massive 18% share price drop in September following its second-quarter earnings. At the heart of Ford Motor Company (NYSE:F)’s woes are its quality control issues which had racked up $800 million in warranty expenses in Q2. The firm also stopped producing its EV truck in October. Firm-specific factors such as inventories and warranty costs were also on Cramer’s mind when he shared:
“Tesla’s [got] a lot of mojo, that’s a technical term for the stock going higher. Ford does not have a lot of mojo and this note by Jefferies, they’re talking about David, this is one of the reasons what can save the Fed when they cut. Ford has inventory drifting up to 96 days. That says to me, way too much, way too much. By the way that’s far more than GM, 26, um, well I mean GM and Stellantis have much lover inventories. And David they have this gigantic cumulative gap of 8.5 billion warranty and quality problems, bad warranties and extended warranties where the cost of fixing is way too high and parts are going up huge during the closure. So that’s a very tough.
“No, no, we got rid of it because I couldn’t take your ridicule. The ridicule got to me in Boeing at $240.”
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