In this article, we will take a detailed look at Jim Cramer is Talking About Trump Media and 10 Other Stocks. For a quick overview of such stocks, read our article Jim Cramer is Talking About These 5 Stocks.
Jim Cramer in his latest program on CNBC tried to get to the bottom of the recent market decline amid rising yields and uncertainty around the Federal Reserve’s rate-cut plan. Cramer said that the latest market decline was not “consequential” because if the upcoming jobs report comes in weaker than expected, the market will rebound as people would expect the Federal Reserve to cut interest rates to avoid a hard landing. Cramer said it’s been a while since we saw a broader selloff, so we “forgot” how to “handle” one.
Cramer Explains the “Real” Reasons Behind the Latest Selloff
The CNBC host tried to get to the “real reasons” behind the latest selloff and found them in earnings, which he said are always important for him. Cramer first talked about payroll solutions company Paychex, Inc. (NASDAQ:PAYX) which recently posted downbeat sales for the fiscal third quarter ending February 29, 2024. Cramer specifically highlighted Paychex, Inc. (NASDAQ:PAYX) CEO comments delivered during the company’s latest earnings call where he talked about some trends he’s seeing in the jobs market.
“But however, a relatively stable macro environment, the softening in hiring we started to see in the second quarter continued in the third quarter. There is more choppiness in hiring across all customer segments and industries now.
Our clients tell us they still can’t find qualified employees and are not willing to hire just anyone at higher wage rates, especially in areas with recent minimum wage increases and aggressive legislative changes. The demand for our HR technology and advisory solutions remains robust and the volumes of new clients added in the quarter were strong. We continue to deliver value for our customers as seen on our revenue retention results, which remain above pre-pandemic levels. Client retention for the third quarter was also in line with pre-pandemic levels and both revenue and HR outsourcing work site employee retention remains at record levels. As we continue to focus our resources on acquiring and retaining high value clients.” [read the full earnings call transcript here.]
Cramer then turned to Tesla Inc (NASDAQ:TSLA), which he believes does not deserve to be in the Magnificent Seven group of stocks anymore. Cramer said that the problems Tesla Inc (NASDAQ:TSLA) is facing have to do with the overall declining demand for EVs in the US. He said Tesla Inc (NASDAQ:TSLA) is facing what Ford and GM had already faced.
Cramer said that the “real problem” with Tesla Inc (NASDAQ:TSLA) is that it turned out to be a car company instead of an “immortal tech company.” However, Cramer said Tesla is a “headline grabber” and it always will be.
Cramer Recommends Investors to “Hunker Down” and Wait
Jim Cramer reiterated that we should always expect a 10% pullback on average every two years, based on the analysis of legendary economist Peter Lynch. He also said that there weren’t “many” stocks that saw declines in the latest selloff. Instead, he thinks most of the losses were seen by individual stocks based on specific events and catalysts. Cramer thinks the market was overbought and the selloff was due, and he said it’s not over yet. Cramer recommend investors to “hunker down” and wait for the markets to rebound.
Jim Cramer has been recommending mega-cap quality names like Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG) over the past few months as he’s highly bullish on the AI revolution that is boosting several names under his coverage.
Methodology
For this article we watched latest programs of Jim Cramer aired on CNBC over the past few weeks and picked some of the most important stocks he discussed. With each stock we have mentioned the number of hedge fund investors, where applicable. But why is it important to keep tabs on hedge fund activity? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
11. Trump Media & Technology Group Corp (NASDAQ:DJT)
Number of Hedge Fund Investors: N/A
On March 26, when Trump Media & Technology Group Corp (NASDAQ:DJT) was skyrocketing, Cramer said on CNBC that if I were Donald Trump “this is the moment” when you’d say it’s time to release more shares.
“I am not sure where Mr. Trump’s head is, but this is a moment where he could say, look, the stock’s up 286%. No one would mind if I sold stock, so please let me do it.”
Trump Media & Technology Group Corp (NASDAQ:DJT) shares have pared gains since. The stock is down 26% over the past five days as Trump Media & Technology Group Corp (NASDAQ:DJT) recently revealed that it had a net loss of about $58 million in 2023, while revenue in the period was $4.1 million.
10. AGNC Investment Corp (NASDAQ:AGNC)
Number of Hedge Fund Investors: 14
Jim Cramer is highly bearish on mortgage residential REIT AGNC Investment Corp (NASDAQ:AGNC). A caller recently asked Cramer whether he should buy AGNC Investment Corp (NASDAQ:AGNC) stock for dividends. Cramer’s reply was a resounding “No.” He asked the questioner to see how the stock has performed over the past few years, or “any period” for that matter. Cramer said this stock “just goes down” and “I don’t want you to touch that stock.” Cramer is bearish on AGNC but recommends buying Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG) for the long term.
As of the end of the last quarter of 2023, 14 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in AGNC Investment Corp (NASDAQ:AGNC). The biggest stakeholder of AGNC Investment Corp (NASDAQ:AGNC) during this period was Karim Abbadi and Edward Mcbride’s Centiva Capital which owns a $16 million stake in AGNC Investment Corp (NASDAQ:AGNC).
9. Aris Water Solutions Inc (NYSE:ARIS)
Number of Hedge Fund Investors: 15
Water handling and recycling solutions company Aris Water Solutions Inc (NYSE:ARIS) is one of the stocks Jim Cramer was talking about recently. Cramer said that he’s a bit late to the stock since Aris Water Solutions Inc (NYSE:ARIS) shares have “almost doubled.” Cramer said he’d wait for a pullback in the stock price.
“Let’s see if we can get it back to $10.”
Aris Water Solutions Inc (NYSE:ARIS) shares have gained about 64% so far this year.
8. Tyler Technologies Inc (NYSE:TYL)
Number of Hedge Fund Investors: 29
Texas-based software company Tyler Technologies Inc (NYSE:TYL) stock is a Buy, according to Jim Cramer. When asked about the stock, Cramer said that it’s a very “well-run” company. He also said that a government business is a “good business.”
Tyler Technologies Inc (NYSE:TYL) is one of the stocks seeing heavy insider selling activity this year. John S Marr Jr, Tyler Technologies Inc’s (NYSE:TYL) former CEO and current executive chairman of the board, sold 7,500 shares of Tyler Technologies Inc (NYSE:TYL) on March 13 at $425.07 per share.
Here is what Andvari Associates has to say about Tyler Technologies, Inc. (NYSE:TYL) in its Q3 2023 investor letter:
“After good results for the first half of the year, Andvari’s performance suffered at the end of the third quarter for two reasons. First, renewed fears of interest rates remaining higher for longer impacted multiple holdings that are most sensitive to rates. Companies with high growth prospects, like Tyler Technologies (NYSE:TYL), also declined. A third group also declined: our investments in fixed income and preferred securities for retirement accounts naturally declined in value as the prices of these securities go down when interest rates go up.”
7. Interactive Brokers Gorup, Inc (NASDAQ:IBKR)
Number of Hedge Fund Investors: 45
Jim Cramer is bullish on automated electronic broker platform company Interactive Brokers Gorup, Inc (NASDAQ:IBKR). When asked about the stock in a latest program, Cramer said that it’s an “incredibly well-run company” and “everybody feels that way.” In the same vein Jim Cramer also recommended investors to consider buying Charles Schwab shares. In addition to IBKR, Cramer is recommending Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG).
Interactive Brokers Gorup, Inc (NASDAQ:IBKR) shares have gained about 39% over the past one year.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its fourth quarter 2023 investor letter:
“In Financials, we prefer well-placed insurance companies and niche businesses while tending to avoid banks which face credit deterioration and rising deposit costs. Interactive Brokers Group, Inc. (NASDAQ:IBKR) operates as an automated electronic broker worldwide. Third quarter’s earnings were above consensus estimates, aided by the combination of higher revenues and lower expenses. Despite the beat, its shares lost -4% due to reduced expectations around inorganic account growth as two new Asian broker relationships have been pushed out.”
6. Quanta Services Inc (NYSE:PWR)
Number of Hedge Fund Investors: 51
Jim Cramer hit the “Buy, Buy, Buy” button on Texas-based construction engineering company Quanta Services Inc (NYSE:PWR) during a latest Lightning Round segment of his program Mad Money on CNBC. Cramer said that Quanta Services Inc (NYSE:PWR) is “just fantastic.” He said Quanta Services Inc (NYSE:PWR) is a great infrastructure player.
“I think you’ve got a winner there.”
Artisan Mid Cap Fund stated the following regarding Quanta Services, Inc. (NYSE:PWR) in its fourth quarter 2023 investor letter:
“Along with DexCom, notable adds in the quarter included Quanta Services, Inc. (NYSE:PWR) and Jabil. Quanta provides outsourced skilled labor for maintenance and construction services, primarily to utilities. We have followed the company for over a decade and have witnessed its shift from oil and gas to renewables. The energy transition (solar and wind farms, electric vehicles, etc.) requires investments in the US energy grid to support greater electrification. At the same time, climate change is increasing stress on the existing grid, forcing utilities to increase maintenance spending. Furthermore, Federal incentive programs, such as the Inflation Reduction Act and Bipartisan Infrastructure Act, will help fuel Quanta’s long-term growth given its expertise in transmission and distribution connections as renewable energy infrastructure seeks to connect to the grid. The stock sold off early in the quarter on concerns that higher interest rates would lead to a pullback in renewables investments by utility customers. However, based on our industry research, we think Quanta’s key customers are well resourced and committed to meeting long-term electrification needs via infrastructure investment. We used the selloff as an opportunity to move the position into the CropSM at a more attractive valuation.”
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Disclosure. None. Jim Cramer is Talking About Trump Media and 10 Other Stocks is originally published on Insider Monkey.