This article presents an overview of Jim Cramer is Bearish on These 5 Stocks. For a detailed overview of such stocks, read our article Jim Cramer is Bearish on These 12 Stocks.
5. Robinhood Markets Inc (NASDAQ:HOOD)
Number of Hedge Fund Investors: 28
Jim Cramer was recently asked about his thoughts on Robinhood Markets Inc (NASDAQ:HOOD). Cramer said Robinhood Markets Inc’s (NASDAQ:HOOD) platform has “too much exposure” to options and Bitcoin. Cramer said Robinhood Markets Inc (NASDAQ:HOOD) should have more exposure to “basic customers.” He recommended the questioner to buy Charles Schwab instead.
As of the end of the third quarter of 2023, 28 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Robinhood Markets Inc (NASDAQ:HOOD). The most notable hedge fund stakeholder of Robinhood Markets Inc (NASDAQ:HOOD) during this period was Catherine D. Wood’s ARK Investment Management which owns a $322 million stake in Robinhood Markets Inc (NASDAQ:HOOD).
4. Fluor Corp (NYSE:FLR)
Number of Hedge Fund Investors: 31
Engineering and construction company Fluor Corp (NYSE:FLR) is one of the companies Jim Cramer is recommending investors to stay away from. Answering a question about Fluor Corp (NYSE:FLR) in a program last month, Cramer said Fluor Corp (NYSE:FLR) has “missed the quarter more times than, I think, they have made the quarter.” Cramer said even though he likes the infrastructure theme he’d still recommend staying away from the stock.
As of the end of the third quarter of 2023, 31 out of the 910 hedge funds tracked by Insider Monkey had stakes in Fluor Corp (NYSE:FLR). The biggest stakeholder of Fluor Corp (NYSE:FLR) during this period was Israel Englander’s Millennium Management which owns a $123 million stake in Fluor Corp (NYSE:FLR).
3. Ferrari NV (NYSE:RACE)
Number of Hedge Fund Investors: 31
Jim Cramer said “it’s hard” when he was asked about Ferrari NV (NYSE:RACE) stock a few days ago during his program.
“I’m going to have to say let’s take a pass on Ferrari.”
As of the end of the third quarter of 2023, 31 out of the 910 funds tracked by Insider Monkey had stakes in Ferrari NV (NYSE:RACE). The most notable stake in Ferrari NV (NYSE:RACE) is owned by Paul Marshall and Ian Wace’s Marshall Wace LLP which owns a $130 million stake in Ferrari NV (NYSE:RACE).
2. Illumina Inc. (NASDAQ:ILMN)
Number of Hedge Fund Investors: 40
California-based biotechnology company Illumina Inc. (NASDAQ:ILMN) ranks second in our list of the stocks Jim Cramer is bearish on. Recently, a caller asked Cramer in his program about his thoughts on Illumina Inc. (NASDAQ:ILMN).
The analyst said Illumina Inc. (NASDAQ:ILMN) is a “second rate Danaher” and while there’s no harm investing in second rate companies for now Cramer thinks it’s best to just go for Danaher and said “we are not gonna go by Illumina.”
Cramer said for now we are going to put the “second raters” aside for a moment. Jim Cramer has long been a believer of buying best of breed stocks in different sectors and his thoughts on Illumina Inc. (NASDAQ:ILMN) allude to a similar thesis.
In early January Cramer said that Illumina’s story is uncertaint and “too messy.”
Patient Capital Management stated the following regarding Illumina, Inc. (NASDAQ:ILMN) in its fourth quarter 2023 investor letter:
“We entered Illumina, Inc. (NASDAQ:ILMN), another healthcare name, in the quarter. A previous market darling, Illumina has declined from a high of $524 in 2021 to a low of $92 in 2023. We started adding near the lows. The company is a leader in genomic sequencing but made an ill-advised acquisition of Grail, a blood-based multi-cancer early detection product, in 2021 for $8 billion. The company completed the acquisition before European regulators could complete their antitrust review setting off years of regulatory back and forth. A new management team, new board members, an activist campaign, and an ordered divestiture of Grail later, and we believe we were able to buy a market-leading compounder at the point of maximum pessimism. Despite increased competition in the genome sequencing space, Illumina continues to be a leader with ~80% market share today. With the divestment of Grail, the company will return to a pure-play sequencing company with a drastically improved margin and FCF profile (22% operating margins core ILMN vs 8% with Grail) since Grail has been a cash drag of >$600m annually. Ex-Grail, we believed we were paying a market multiple on 2025 earnings for a market leader with strong cash generation and significant future growth potential.”
1. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Investors: 81
Jim Cramer has been bearish on Tesla Inc (NASDAQ:TSLA) since the start of the year as he famously excluded Tesla Inc (NASDAQ:TSLA) from his list of favorite Mag. 7 stocks. After Tesla Inc (NASDAQ:TSLA) posted fourth quarter results that missed estimates on both EPS and revenue, Jim Cramer tweeted:
“We could look the other way and just decide this Tesla Inc (NASDAQ:TSLA) quarter was an anomaly. Or we could just say “and then there were six.” But to ignore what is happening to Tesla Inc’s (NASDAQ:TSLA) stock or to avert your ears from last night’s call seems too glib right now.”
The fourth quarter was also worrying for many Tesla Inc (NASDAQ:TSLA) bulls and several analysts said Tesla Inc’s (NASDAQ:TSLA) guidance shows signs of trouble ahead.
As of the end of the third quarter of 2023, 81 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Tesla Inc (NASDAQ:TSLA).
O’keefe Stevens Advisory stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its fourth quarter 2023 investor letter:
“In my Q4 2022, l made three predictions: 1. One of our top 25 holdings gets acquired 2. TSLA is a sub $200B market cap by the end of 2023 3. Crypto, the final blow.
Tesla, Inc. (NASDAQ:TSLA) is a sub $200B market cap by the end of 2023. Grade: D. TSLA performed contrary to expectations, appreciating approximately 100% in 2023 and ending the year with an $880 billion market cap. We were “just a bit outside,” but I’m not convinced our reasoning was flawed.
The typical strong correlation between earnings estimates and stock prices did not hold for TSLA during the year. Positive revisions suggest a company outperformed expectations, resulting in a higher price/valuation. Negative revisions suggested estimates were too high, and the stock should decline to meet a weaker outlook…” (Click here to read the full text)
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