Jim Cramer, host of Mad Money, advised investors on Monday against exiting the market entirely, despite the sharp sell-off that has rattled many. He reminded viewers that, historically, the market has always found its bottom, and stocks can rebound over time. Cramer acknowledged that selling everything might feel like a relief in the short term, but he raised an important question and said:
“Sure you can get out, but can you get back in? Selling everything right now feels great. We know that President Trump is now hanging with the bears… As he himself said you can’t really watch the stock market, the stock market’s the problems of the rich, and they don’t matter as long as it, they can take a hit. And that’s a zeitgeist from the Walmart White House where Trump’s giving us everyday lower prices for stocks.”
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Cramer pointed out that Trump’s approach reflects a mindset that he does not believe is the right course of action for investors focused on long-term growth. In the past, Cramer noted, figures like Trump and Federal Reserve Chairman Jerome Powell were seen as stabilizers, or “puts,” that would help cushion the market’s downward moves. However, no one seems to be talking about that kind of support lately. He added:
“People are capitulating because they want to get rid of the pain and they don’t want to lose the game… See, there’s just one problem. How do you get back in?”
Cramer made a compelling case for why investors should actually consider buying during times like this, even though it might seem counterintuitive. He acknowledged that on a day when the market is being hammered, the idea of buying may feel strange. However, he emphasized that focusing on preserving capital rather than chasing quick gains is crucial during turbulent times.
Cramer also highlighted a common pitfall: many investors get scared off during market downturns and fail to seize the opportunity to buy strong companies at lower prices. He pointed out that this fear leads people to miss out on significant future gains, leaving them on the sidelines while others take advantage of lower stock prices and reap substantial rewards.
“It’s why you should be thinking of buying the great companies here, not selling them. To not get good merchandise as it starts being really cheap is a failure of imagination, to not have held them all the way could be a failure of recognition.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 10. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer Discussed These 7 Stocks
7. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Mentioning Meta Platforms, Inc. (NASDAQ:META), Cramer said that he is banning the term Magnificent Seven from Mad Money.
“The whole day was obvious that only consumer products and healthcare stocks make you money. There haven’t been many days like this, so people sell their losers out of fear so out goes Apple or Microsoft and Netflix and Meta, why not? You don’t want to give up the gain and there is no Magnificent Seven anymore. Scrap it right now, okay? I’m banning the term from the show as of this evening.”
Meta (NASDAQ:META) develops products that allow people to connect and share through various devices, including mobile phones, personal computers, and VR/AR headsets. Its offerings include social media apps like Facebook, Instagram, Messenger, Threads, and WhatsApp, as well as virtual and augmented reality hardware, software, and content.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
6. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 144
Cramer commented on Netflix, Inc. (NASDAQ:NFLX) in the recent episode and said:
“The whole day was obvious that only consumer products and healthcare stocks make you money. There haven’t been many days like this, so people sell their losers out of fear so out goes Apple or Microsoft and Netflix and Meta, why not? You don’t want to give up the gain and there is no Magnificent Seven anymore. Scrap it right now, okay? I’m banning the term from the show as of this evening.”
Netflix (NASDAQ:NFLX) is a global streaming service offering a diverse selection of movies, TV shows, and original content to millions of subscribers worldwide. In February, Cramer was more upbeat about the company when he said:
“And then FANG’s kind of back. I mean you know Netflix is going up without a problem… And they don’t beat their chest. They just deliver, and deliver, and deliver. And Carl when I find companies that are doing something like that, they remind me of the subscription model. Netflix, Amazon, Spotify. It’s just such a good buisiness to be a subscription model. . . it is uh, it’s going higher.”
5. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Observing the sell-off in the market, Cramer mentioned Microsoft Corporation (NASDAQ:MSFT) and noted that the Magnificent Seven do not exist anymore.
“The whole day was obvious that only consumer products and healthcare stocks make you money. There haven’t been many days like this, so people sell their losers out of fear so out goes Apple or Microsoft and Netflix and Meta, why not? You don’t want to give up the gain and there is no Magnificent Seven anymore. Scrap it right now, okay? I’m banning the term from the show as of this evening.”
Microsoft (NASDAQ:MSFT) develops software, services, devices, and solutions, covering areas such as productivity tools, cloud services, enterprise applications, gaming, and products for both individuals and businesses. On March 7, Stifel reduced its price target on MSFT stock to $475 from $515 and maintained a Buy rating on the stock after meeting with the company’s investor relations team.
Based on investor sentiment and the primary focus on capital expenditure (capex), the meetings reinforced the firm’s view that the stock may remain range-bound until the market is confident that Azure/Commercial Cloud growth can outpace capex increases, as it did before the current generation AI capex ramp. Although Stifel expects the rapidly advancing generative AI cycle to enable Microsoft (NASDAQ:MSFT) to maintain double-digit revenue and profitability growth in the long term, it lowered its target due to higher capex expectations after management reiterated a capex guidance of approximately $87B for FY25 and projected slower growth for FY26.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Discussing Apple Inc. (NASDAQ:AAPL) during the episode, Mad Money’s host said:
“The whole day was obvious that only consumer products and healthcare stocks make you money. There haven’t been many days like this, so people sell their losers out of fear so out goes Apple or Microsoft and Netflix and Meta, why not? You don’t want to give up the gain and there is no Magnificent Seven anymore. Scrap it right now, okay? I’m banning the term from the show as of this evening.”
Apple (NASDAQ:AAPL) creates and sells a wide range of consumer electronics, such as smartphones, computers, tablets, and wearables, as well as a variety of accessories and services. The company also provides subscription services like Apple Music, Apple TV+, and Apple Arcade, and runs platforms including the App Store and Apple Pay. In February, Cramer commented:
“I noticed that Apple’s down today. Apple’s been the outlier. It’s been going up because people feel they didn’t spend anything on the data center so they’re the freerider that we like… I could see the stock going lower and I like it.,, Yeah this is the one I think, I believe the short sellers will go after and target because it’s the only one that’s still up. You know how short sellers work, not the AppLovin short, which is what I’m trying to get a line on. But just like, okay, well why, that one doesn’t deserve to be up. And if NVIDIA’s bad, that’ll go down, if NVIDIA’s good it may not impact the stock. It’s an interesting short. I’m against it, but it’s interesting.”
3. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 105
While Cramer acknowledged Oracle Corporation’s (NYSE:ORCL) recently reported solid numbers, he pointed out the worrisome state of the economy.
“Hey, maybe the strong orders we saw from Oracle tonight can turn things around but then again… Will we really have a recession? The economy does seem to be in a sudden precipitous decline.”
Oracle (NYSE:ORCL) is a tech company offering a wide variety of IT services and solutions designed for businesses. Polen Capital stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q4 2024 investor letter:
“We added to several existing positions in the quarter including Oracle Corporation (NYSE:ORCL), Zoetis, and Eli Lilly. Oracle was a recent addition to the portfolio last quarter, and results so far indicate an accelerating trajectory that we expect will continue for many years. The company’s OCI (Oracle Cloud Infrastructure) cloud infrastructure business enjoys large and durable advantages and is seeing much demand for normal cloud workloads with generative AI training and inference workloads as nice potential optionality on the upside.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
Noting that NVIDIA Corporation (NASDAQ:NVDA) is trading like a meme stock, Cramer remarked:
“The big themes of tech, the data center build out and AI seem suddenly cursed victims of that Chinese outfit DeepSeek that has figured out a way to get more computing power from less hardware… By the way, Nvidia now trades like a meme stock. Can we just tell it? It’s a meme, that’s why it’s getting crushed. Let’s not fool around. It’s a meme stock.”
NVIDIA (NASDAQ:NVDA) is renowned for its innovations in graphics, computing, and networking technologies, particularly its GPUs and the CUDA software platform. Cramer has been a fan of the company for a while now and almost two weeks ago, he commented:
“Now, I don’t wanna obscure the company where the stock… that I always say own, don’t trade Nvidia. After the close, it was a very good quarter. Everyone thought this would be the most eventful quarter of earnings season, but it was a non-event. Why? Because it was terrific and Jensen Huang gives us terrific numbers.
He’s about as steady as the president is mercurial. The company put up solidly better than expected sales and earnings with strong guidance for the quarter, driven by the strength of their new high-end chips, Blackwell chips. Fantastic. Bravo. While we still have to worry about tariffs and export restrictions, I have to tell you, the numbers were excellent.”
1. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 84
Delta Air Lines, Inc. (NYSE:DAL) was mentioned during the episode, and here is what Crmaer had to say:
“Tonight, Delta stock was just absolutely obliterated when the company announced a hideous shortfall citing weakness in both business and consumer. What a dog. So what the heck is going on here?… After Delta news is digested tomorrow and all the travel leisure numbers are cut, it might be too late to sell.
You can buy some low multiple techs and industrials and banks here. We did that for the Charitable Trust today, right into the teeth of the sell-off… Just tonight we heard from Delta that both corporate and consumer customers are weak and it can’t come anywhere near the estimates the analysts were looking for, real big negative for tomorrow.”
Delta Air Lines, Inc. (NYSE:DAL) is an air transportation company that provides both passenger and cargo services across a broad network of domestic and international routes.
While we acknowledge the potential of Delta Air Lines, Inc. (NYSE:DAL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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