This article presents an overview of 5 Stocks You Should Not Buy According to Jim Cramer. For a detailed overview of such stocks, read our article, 10 Stocks You Should Not Buy According to Jim Cramer.
5. Enovix Corp (NASDAQ:ENVX)
Number of Hedge Fund Investors: 25
Enovix Corp (NASDAQ:ENVX) makes lithium-ion batteries for wearable devices. It’s one of the stocks Jim Cramer is advising investors to stay away from. In a latest program, when asked about his thoughts about the stock, Cramer said that he cannot recommend the stock because Enovix Corp (NASDAQ:ENVX) isn’t making any money.
“You’ve got to be making money in that business.”
As of the end of the fourth quarter of 2023, 25 hedge funds of the 933 funds tracked by Insider Monkey reported having stakes in Enovix Corp (NASDAQ:ENVX). The most significant stake in Enovix Corp (NASDAQ:ENVX) is owned by Jos Shaver’s Electron Capital Partners which owns a $41 million stake in Enovix Corp (NASDAQ:ENVX).
4. Guidewire Software Inc (NYSE:GWRE)
Number of Hedge Fund Investors: 33
While Jim Cramer called the property and casualty insurance software company Guidewire Software Inc (NYSE:GWRE) “good” in a recent program, he advised investors to not invest in the stock for now because of valuation concerns. Cramer said the stock sells at “90 times earnings.”
“Companies that are selling at anything more than 20 times earnings are getting hurt.”
Cramer recommended investors to wait for a pullback and buy the stock are a “lower price.”
The RiverPark/Next Century Growth Fund stated the following regarding Guidewire Software, Inc. (NYSE:GWRE) in its fourth quarter 2023 investor letter:
“Guidewire Software, Inc. (NYSE:GWRE) provides a software platform for P&C insurance companies to run their businesses (policies, claims, billing, data & analytics). Traditionally, P&C insurance companies have used legacy, on-premise solutions or homegrown systems, which have difficulty scaling as companies grow. GWRE currently has >500 customers and targets the Top 2,000 insurers worldwide. GWRE is a company we owned in the past but sold due to a business model transition which caused some growing pains. They are now mostly through the transition and are experiencing increased adoption of their next generation platform as more and more insurers are moving their core systems to the cloud. Following many years of increased investment in product and go-to-market initiatives, GWRE should be in position to deliver solid revenue growth and improved profit margins and free cash flow.”
3. Peabody Energy Corp (NYSE:BTU)
Number of Hedge Fund Investors: 35
When asked about Peabody Energy Corp (NYSE:BTU) recently during his program, Cramer said “No, I am not a coal guy.”
“I do not want to own BTU and I think it should be sold.”
About 35 hedge funds in Insider Monkey’s database disagree with Cramer on Peabody since they own stakes in Peabody Energy Corp (NYSE:BTU) worth about $704 million. The biggest stakeholder of Peabody Energy Corp (NYSE:BTU) as of 2023 was Paul Singer’s Elliott Management which owns a $320 million stake in Peabody Energy Corp (NYSE:BTU).
2. Marathon Digital Holdings Inc (NASDAQ:MARA)
Number of Hedge Fund Investors: 50
Jim Cramer yet again urged investors to buy Bitcoin or Ethereum if they want to invest in stocks like Marathon Digital Holdings Inc (NASDAQ:MARA), the Las Vegas, Nevada-based crypto mining company.
“Let’s not fool around, that’s what you do,” said Cramer sharing his thoughts about Marathon Digital Holdings Inc (NASDAQ:MARA).
Of the 933 hedge funds tracked by Insider Monkey, 50 hedge funds reported owning stakes in Marathon Digital Holdings Inc (NASDAQ:MARA).
1. Snowflake Inc (NYSE:SNOW)
Number of Hedge Fund Investors: 86
Jim Cramer said in a recent program that Snowflake Inc (NYSE:SNOW) has lost the “guy we loved”. He was referring to Frank Slootman — who announced retirement in February. Cramer said that Snowflake Inc’s (NYSE:SNOW) new chief Sridhar Ramaswamy is “good” but Slootman was “great.”
“I don’t have the conviction yet to be able to say in this horrible tech stock market that it’s time to buy SNOW. I just can’t do it. It’s too horrible a market.”
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the Jim Cramer Says You Should Avoid These 11 Stocks and the Jim Cramer is Talking About Trump Media and 10 Other Stocks.
