Jim Cramer, the host of Mad Money, spoke on Wednesday about why diversification still matters, especially during violent market swings.
There is a reason I always hesitate to recommend the hottest stocks in the market, the ones with the parabolic moves, the monstrous one-day gains. Why? Because of days like today, that’s why, days where you can lose so much money in the high-fliers, more than you made when they were going up, that it just takes your breath away… I don’t know if there’s still a huge amount of hope for tech. There’s some, obviously. Tech’s a good part of the market. It’s just that many of these stocks suddenly aren’t worth as much as we thought. Some of that’s because the whole enterprise software cohort has gone out of style thanks to AI.
READ ALSO: Jim Cramer Highlighted 16 Noteworthy S&P 500 Stocks and Jim Cramer Shared His Opinion on These 14 Stocks.
Cramer said that, on the other hand, the market is filled with companies that generate no profits and are swept up in pure speculation. He said these names were part of what he calls the “year of magical thinking stocks,” the same ones he urged viewers to stay away from back in October 2025.
The bottom line, let me give it to you: If you despise diversification, I got some real bad news for you. If this volatility keeps up, volatility being a code name for getting the bejesus kicked out of you, and you stay undiversified, then you’re going to get smashed by a Bitcoin derivative, one that guarantees you the full faith and credit of an analyst or a hedge fund manager who spouts their virtue in every media outlet. I say these things should never have been born. For lots of these, incredibly, it’s still not too late to sell.
Our Methodology
For this article, we compiled a list of 14 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 4. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, which was taken from Insider Monkey’s database of 978 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).
Jim Cramer Commented on These 14 Stocks
14. Eos Energy Enterprises, Inc. (NASDAQ:EOSE)
Number of Hedge Fund Holders: 32
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) is one of the stocks Jim Cramer commented on. Mentioning that they bought the stock last year, a caller asked what is going on with it. Here’s what Cramer had to say in response:
Sell it. I mean, it’s just a kind of classic, that’s a year of magical thinking, magical investing stock. We don’t want to touch that one. But it is in Edison, New Jersey, which is where, by the way, Edison was born. It just happens to be a great coincidence.
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) develops zinc-based battery energy storage systems designed for utility-scale and industrial use as an alternative to lithium-ion and lead-acid technologies. The company announced the launch of Eos Indensity on January 14. The architecture uses a design framework called Spatial Intelligence to handle site-specific needs for scale and safety. The system builds on the company’s Z3 module and zinc-powered Znyth technology. Eos Energy Enterprises, Inc.’s (NASDAQ:EOSE) CEO, Joe Mastrangelo, said:
We’ve taken everything we’ve learned over 15 years and built a system that answers the toughest questions in energy storage: How do you scale responsibly? How do you deliver flexibility without compromise? How do you make storage safe enough to sit next to the assets that power modern life? The idea of what we call Spatial Intelligence—thinking deeply about and designing for the daily needs and realities of the places our storage would go—that was our team’s guiding star, and Indensity is our answer. And it’s ready now.
13. Synchrony Financial (NYSE:SYF)
Number of Hedge Fund Holders: 56
Synchrony Financial (NYSE:SYF) is one of the stocks Jim Cramer commented on. Answering a caller’s query about the stock, Cramer remarked:
I don’t want to own Synchrony. I want to own Capital One, COF, the Charitable Trust owns it. It’s pulled back nicely from $259 to $225.
Synchrony Financial (NYSE:SYF) provides credit cards, installment loans, and healthcare financing, and also offers basic banking services. Cramer made similar remarks when he discussed the company during the episode aired on September 9, 2025. The Mad Money host commented:
Then up next is Synchrony Financial. That’s a credit card issuer, which has retired 7% of its shares per year. Tempting? No, because, see, I prefer Capital One, which said this very day that it’s stepping up its share repurchasing this quarter.
It is worth noting that the company’s stock is down 1.1% from the day the above comment was aired.
