On Tuesday, Mad Money host Jim Cramer said that Wall Street has become too obsessed with the massive valuations of certain technology and speculative stocks. He said, “Do you mind if we are a little less emotional and a little more clinical here in Cramerica?”
Cramer explained once again that the market is actually divided into three distinct segments: the high-growth, high-tech sector largely driven by data centers; the traditional, real-world economy; and a separate, more speculative segment.
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“The tech/data center economy covers a lot of different areas. The companies that lead this group are at the heart of the fourth industrial revolution. Think everything from the Magnificent Seven to highly valued enterprise software companies to industrial companies that have pivoted to building out AI infrastructure, the data center.”
Cramer noted that stocks in this category often trade at elevated price-to-earnings ratios, with those multiples representing what investors are collectively willing to pay for each dollar of a company’s earnings.
“The bottom line: Some days, it all just seems… a little bit too much to investors. So when Palantir is their north star, their totem, and they see it pulling back hard on a perfect quarter, it calls the whole market into question for them, and it triggers a raft of selling. That’s exactly what happened today. Don’t believe the uber bears, but accept that after the run that we’ve had, some people are going to sell stocks you own… But that’s because they don’t want to give up the gain, or because they simply can’t handle the pain.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on November 4. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 900 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
9 Latest Stocks on Jim Cramer’s Radar
9. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 66
Starbucks Corporation (NASDAQ:SBUX) is one of the latest stocks on Jim Cramer’s radar. Cramer discussed the company’s China business in detail and said:
“How about Starbucks? When Brian Niccol came in to run the coffee chain, we had no idea how low its fortunes had truly sunk. There were so many things wrong, and perhaps the most worrisome, China. After years of tremendous growth, the Chinese coffee market had become hypercompetitive, with Starbucks losing share to lower-priced offerings. Do you know that Starbucks, at one point, had minus 14% same-store sales in China? Since then, Starbucks China has stabilized, but the bleeding around the globe has been tough.
Given the tension between our two countries, Starbucks China, I thought it had become a liability…. So it made a ton of sense to just sell the Chinese business. I had no idea what it’d be worth… I at first thought very little. Then I believed it could be worth somewhere around 10 billion, 50% of it going to a Chinese entity. Then we learned that there were multiple bidders, something that made me hopeful. Last night, though, we learned that Starbucks was selling 60% of Starbucks China to Boyu in a deal that valued the business at $4 billion.
Starbucks did add that it expects the total value of the China retail business to exceed $13 billion. When you add up proceeds from the deal, it retains stake in the business and future licensing payments. But still, the headline number from the deal was regarded as disappointing given that so many buyers have been circling the division. Now, we know that Starbucks reported last week, and Niccol’s talking about a turn. He’s saying things are getting better…
And what happens? Well, the stock gets hit first on the earnings, and then it gets hit again on the sale of the Chinese business. Hit and hit. I’m not saying Starbucks is cheap at 31 times earnings. I am saying that because it’s a turnaround, you should not expect a low price-to-earnings multiple here. Either way, you can’t give away Starbucks right now. We own it for the Charitable Trust. We bought some yesterday, thinking, well, you know what? Maybe we got lucky, China sale. No, it got hammered anyway. Now, do I want to buy any more here? I don’t want to touch it till it hits 75, but unfortunately, I think that’s where it’s headed. It’s so despised, just like so many others in its cohort.”
Starbucks Corporation (NASDAQ:SBUX) sells coffee, tea, and food products. The company operates through brands, including Starbucks Coffee, Teavana, and Seattle’s Best Coffee.
8. Kimberly-Clark Corporation (NASDAQ:KMB)
Number of Hedge Fund Holders: 42
Kimberly-Clark Corporation (NASDAQ:KMB) is one of the latest stocks on Jim Cramer’s radar. Cramer discussed the company’s earnings, acquisition plans, and market reaction after both. He commented:
“How about Kimberly-Clark? Sure, it got hit hard off the announcement of the Kenvue acquisition yesterday, but consider this. This, Kimberly just reported that it earned a $1.82 per share. Street was looking for $1.76. Now, the stock got a quick pop on that, gaining 3% Thursday, but that’s ancient memory as the stock’s now given up all that and more, of course because of the takeover.
But you know, I gotta tell you, it yields 5%, a terrific balance sheet. Doesn’t seem to matter. You gotta wonder, why these guys felt compelled to bid for Kenvue because nothing else is working. It just reported a very, very good quarter and the stock did next to nothing anyway. They have to think bigger if they hope to regain the love of growth investors.”
Kimberly-Clark Corporation (NASDAQ:KMB) sells personal care and household products, including diapers, wipes, feminine and adult care products, tissues, paper towels, and soaps.
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