This article presents an overview of Jim Cramer is Bearish on These 5 Stocks in April. For a detailed overview of such stocks, read our article, Jim Cramer is Bearish on These 10 Stocks in April.
5. Peloton Interactive Inc (NASDAQ:PTON)
Number of Hedge Fund Investors: 36
Jim Cramer recently talked about the effects of the COVID-19 pandemic on the market and how many companies are still going through the COVID impact. Talking about Peloton Interactive Inc (NASDAQ:PTON), the CNBC host said many people thought Peloton Interactive Inc (NASDAQ:PTON) won’t lose subscribers it gained during the pandemic. Cramer said they were wrong.
“Who knows that this one would ever come back.”
Peloton Interactive Inc (NASDAQ:PTON) shares have lost about 65% over the past one year.
4. Gitlab Inc (NASDAQ:GTLB)
Number of Hedge Fund Investors: 40
DevSecOps platform company Gitlab Inc (NASDAQ:GTLB) ranks fourth in our list of the stocks Jim Cramer is bearish on. When asked about the stock in a latest program, Cramer said he went through Gitlab Inc’s (NASDAQ:GTLB) last quarter with a “fine-toothed comb” and didn’t like it. Cramer said the earnings report had nothing that would make him feel good about this “high-multiple stock.”
Baron Discovery Fund stated the following regarding GitLab Inc. (NASDAQ:GTLB) in its fourth quarter 2023 investor letter:
“GitLab Inc. (NASDAQ:GTLB) is an end-to-end software development and IT operations platform that enterprises use to create, secure, and deploy programming code. The stock rose after GitLab delivered strong quarterly results driven by improving win rates in enterprise deals, solid seat growth, and higher average selling prices. In recent years, GitLab has delivered more than 400 feature enhancements to its platform, enabling its customers to consolidate more software development steps into GitLab, lowering total IT costs and achieving faster software delivery times. As a result, GitLab has realized higher average revenue per user (ARPU) through a combination of price increases and upgrades to its Ultimate Tier product. These ARPU increases, coupled with consistent user growth, bode well for future sales and margin expansion. GitLab also has several exciting new growth levers, including a monetizable generative AI product that helps developers write code, detect vulnerabilities automatically, and remediate bottlenecks in the coding process, a new enterprise planning SKU that brings non-developers onto the platform, and a Dedicated Tier for clients in regulated industries.”
3. Paramount Global Class B (NASDAQ:PARA)
Number of Hedge Fund Investors: 43
Jim Cramer called media company Paramount Global Class B (NASDAQ:PARA) an “enigma” in a recent program. Cramer said Paramount has the second (a close one, he noted) worst balance sheet in the industry, but it’s “in play”. By “in play” Cramer means the stock is said to be a takeover target. However, Cramer said that for a company that is reportedly a takeover target, its shares are “terrible.” Cramer said that even if there’s a deal for Paramount Global Class B (NASDAQ:PARA), it won’t be much “rewarding” for common shareholders.
Cramer highlighted that the stock recently jumped after reports that it was in talks with SkyDance Media/David-Ellison for a buyout. But later, CNBC broke the story that, thanks to the “dire” state of its balance sheet, Paramount Global Class B (NASDAQ:PARA) would have to raise $3 billion in equity for the deal with SkyDance Media/David-Ellison to go through.
“That, my friends, is bad,” Cramer said about this news.
Cramer also said that no one is “crazy enough to pay for this thing.”
Paramount Global Class B (NASDAQ:PARA) shares have lost about 41% over the past one year.
2. Warner Bros Discovery Inc (NASDAQ:WBD)
Number of Hedge Fund Investors: 56
Jim Cramer recently reshuffled his rankings of media stocks and talked about Warner Bros Discovery Inc (NASDAQ:WBD). He said that Warner Bros Discovery Inc (NASDAQ:WBD) is not in great shape. Cramer called Warner Bros Discovery Inc (NASDAQ:WBD) the “worst of breed” stock and said it has to go in the last place in his rankings. He said Paramount Global Class B (NASDAQ:PARA) at least has takeover chatter, while Warner Bros Discovery Inc (NASDAQ:WBD) seems to have nothing.
Longleaf Partners Fund stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its fourth quarter 2023 investor letter:
“The rules have improved how we analyze existing holdings and influenced the price at which we will buy a new holding and/or trim or add to an existing one. This has resulted in a higher level of resizing positions in the portfolio and exiting some long-term holdings this year. A good example in the portfolio today is Warner Bros. Discovery, Inc. (NASDAQ:WBD), a company that we bought too early but that remains a holding in the portfolio. Our average price for the initial WBD investment in 2021 was $26.48, or a P/V ratio in the mid-60s%. However, P/EV on the initial report was 79%. Under the new rules, we would not pay that price for the company today. We most likely would have waited for a mid-60s% P/EV, which would have equated to a $mid-teens entry price. In this case, we would have missed a too-large initial downturn in the stock price. The overweight rule dictated that we trimmed the position after the price ran up in the first half of 2023, which benefitted overall performance as the stock price subsequently fell again. However, even with the new rule lens, we remain confident in our case for the business and management’s ability to deliver going forward.”
1. Charter Communications Inc (NASDAQ:CHTR)
Number of Hedge Fund Investors: 69
Earlier this month, Jim Cramer was asked about his thoughts on Charter Communications Inc (NASDAQ:CHTR). Cramer labeled the stock “awful”. We covered Cramer’s detailed comments about the stock here.
However, 69 hedge funds in Insider Monkey’s database would disagree with Cramer, since they had reported owning the stock as of the end of 2023. The biggest stakeholder of Charter Communications Inc (NASDAQ:CHTR) was Natixis Global Asset Management’s Harris Associates which had a $2 billion stake in Charter Communications Inc (NASDAQ:CHTR).
Here is what Weitz Conservative Allocation Fund has to say about Charter Communications, Inc. (NASDAQ:CHTR) in its Q3 2023 investor letter:
We swapped the Fund’s Liberty Broadband Corporation (NASDAQ:LBRDK) shares back to Charter Communications, Inc. (NASDAQ:CHTR) (Charter is by far Liberty Broadband’s largest asset), and the combined position was the most notable quarterly contributor. Investor sentiment around broadband’s competitive position became less negative, and the stocks rebounded nicely from what we considered oversold levels.
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.