During a recent episode of Mad Money, which aired on Wednesday, the 7th of May, Jim Cramer gave some advice on how experts pick their stocks:
“I want to pull back the curtain and show you how a professional looks for stocks to buy and knows what to sell. There’s no magic. There’s no hidden talent. Just a bunch of disciplines, disciplines that can help you try to make mad money if you master them.”
READ ALSO: 13 Stock Predictions That Jim Cramer Got Completely Wrong.
Cramer reminded investors to do solid research and only buy stocks they truly believe in, even if that belief comes with skepticism, as long as they think the price will go up. But he warned that belief alone isn’t enough if a stock is falling; the drop must be unrelated to the company’s actual performance to be a buying opportunity. Here’s his advice:
“Be certain you’re dealing with a momentarily damaged stock and not a troubled company that’s going down, down, down. How can you tell the difference between a damaged company and a damaged stock? The fundamentals haven’t changed, the stock probably hasn’t fallen from grace. It’s pulled back for mechanical reasons, profit taking, or some panic in the market in general.”
He then added that hedge funds often cause irrational market swings by treating stocks like short-term trades, not long-term investments. But if a company’s fundamentals do start to break down, it no longer belongs in your portfolio.
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during Mad Money episodes that aired on the 7th and 8th of May 2o24. We then calculated their performance for the past 12 months, until May 7th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
Please note that this article mentions Jim Cramer’s previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out.
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).
12. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 25
Cramer was asked about C3.ai, Inc. (NYSE:AI) and whether it was a good time to invest at the time. He expressed skepticism due to ongoing losses. Here’s what he said back then:
“All right, I’ve always been a fan of Tom Siebel. I’ve known him for 30 years. That said, I just don’t know how to value the stock because they lose a lot of money. So I’m going to take a hard pass on C3 AI.”
Cramer’s skepticism was warranted as the stock dropped by 10% since his warning.
C3.ai, Inc. (NYSE:AI) specializes in enterprise AI software, providing artificial intelligence platforms and predictive analytics tools primarily to defense, energy, and industrial sectors. Jim Cramer remains firm on his opinion about the stock, having said this in a very recent episode:
“Well, I’ll tell you, it keeps losing money. Tom Siebel should not have that keep. He’s the chairman, CEO, founder. There are so many better ones out there. As much as I like Tom, I’m just going to tell you no, go with something that’s even, that’s high.”
11. Arista Networks Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 78
In that older episode, Cramer highlighted Arista Networks Inc. (NYSE:ANET)’s great earnings report at the time and reinforced his opinion that data center demand remained strong. He praised the company’s management and urged his viewers to become investors saying:
“Despite the roller coaster action in the stock market, the demand for infrastructure that can power artificial intelligence never really went away. Take Arista Networks. It’s a maker of high-performance networking equipment that’s increasingly essential if you want tons of computing power for AI, among other things. On Tuesday night, Arista reported a strong top and bottom line beat with management raising their full-year revenue forecast, which allowed the stock to jump 6.5% yesterday and a bit more today — as it should. The only problem? The stock’s up more than 25% for the year. That’s a high-quality problem. […] They just bought back a ton of stock. I think maybe you should join it.”
Cramer called it a “high-quality problem” and was right with the company’s shares climbing by 26.21% over the past year.
Arista Networks Inc. (NYSE:ANET) builds cloud networking infrastructure used in hyperscale data centers and AI computing environments, with a growing emphasis on Ethernet-based AI workloads. In a recent episode that aired this May, Cramer continued on his bullish narrative saying:
“Arista Networks is a crucial part of the data centers, and it reports. And last time, the doubters surfaced immediately, claiming that these guys were losing share. I think Arista can put those doubts to rest when it’s, you know, honestly, they can, and that means it’s a buy ahead of the quarter. Never count out CEO Jayshree Ullal. Big mistake. Think about buying Arista.”
10. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 83
Back in that older episode, Cramer was asked about Intel Corporation (NASDAQ:INTC) and immediately cut the caller off, suggesting he has nothing good to say about the company without elaborating:
“I’m gonna tell you something—just stop right there. Because you’re a Philadelphia PH and Nana Mary, a true Philadelphian from the north side, always says one thing: ‘If you don’t have anything good to say about something, then don’t say it.’ Nana Mary says—I ain’t talking Intel.”
His decision to say nothing spoke volumes, as the stock collapsed by 33.80% since those comments.
Intel Corporation (NASDAQ:INTC) is a legacy semiconductor giant best known for its x86 processors, though it has struggled in recent years to regain market share from rivals in both PC and data center chips. Cramer remains a big fan of the stock and its new CEO. Here’s what he said on April 25th:
“I know. And you could talk about Intel, when it comes to that, also OpEx. Intel being a great manufacturer that is in no mood to be able to expand. Wow.”
“I think people should read his [CEO’s] band of brothers speech about who is going to get there. It’s a very King Henry the Vth speech, Christmas Day. I thought it was very inspirational. But they still have layers upon layers. I mean they’re now saying 17 billion in 25 and 16 billion that’s . . their OpEx, and they’ve cut their OpEx. I think that they have, I cannot believe the bureaucracy, Carl that Intel had, it’s just, it’s sad. I can’t believe how much bureaucracy and how engineers lost their ability to run the best engineering company we had in this country.”
“Oh my, such a great speech and I was telling one of my contacts there I said listen I’m ready to go to war for Lip-Bu. You just say, he is gonna save this company.”
“[On whether it was too late to save INTC] No, and this man has so may friends. . .he’s been success with. . maybe the most successful individual investor in hardware in history. Hardware, not enterprise software. And he’s so inspirational, in his own quiet way, and he knows so many people, he’s gonna fix this company but he would tell you, don’t count on me yet.”
“I’m telling you, you want to win for this man. . . .He’s Andy Reed, quiet winner. I really like this guy.”
“Well, Gelsinger was messianic, without a cause. . . .See, Pat was about himself. And this man has no ego whatsoever. He is about the team. And I have to tell you that this man is going to save this company and what he’s going to do, is not talk about it. Other than negative until it’s ready.”
“He is fixing the balance sheet. He’s so smart. He says listen Jim we’re gonna fix the balance sheet. So don’t get ahead of me, they’re going to fix the balance sheet. . . Engineers were not even in the, do you know engineers weren’t even in the top? . . in the management committee, there were no engineers. Can you imagine that?”
9. CME Group Inc. (NASDAQ:CME)
Number of Hedge Fund Holders: 73
Cramer addressed CME Group Inc. (NASDAQ:CME) in response to a question about why the stock wasn’t reacting to strong earnings at the time. He encouraged patience based on the company’s fundamentals, explaining:
“Well, that means you’ve got to stick with it, because great earnings will prevail in the end. I like that company very, very much.”
Cramer urged patience and was spot on as the stock surged by 36.71% in the following year.
CME Group Inc. (NASDAQ:CME) operates the world’s largest financial derivatives exchange, offering futures and options across asset classes including interest rates, commodities, and stock indexes. Cramer continues to support the stock. Here’s what he said in early April this year:
“Totally terrific stock. I’m going to throw in ICE. That’s exactly where you have to be. That’s fintech without credit risk.”
8. American Eagle Outfitters, Inc. (NYSE:AEO)
Number of Hedge Fund Holders: 33
Cramer was asked about American Eagle Outfitters, Inc. (NYSE:AEO) in that episode, as the stock had been falling after a period of strong performance. He implied it was too volatile and suggested moving to safer retail names.
“You know what, they have the hot stuff. The problem here, is this: when you get to the hot stuff, you gotta get out. You gotta get in and you gotta get out. That’s too hard for me—too hard for you. Let’s go with more traditional. Let’s go with something like a Walmart or my favorite—and yours, no doubt—Costco. That’s what we’re going to go with. And the kid stays in the picture.”
Cramer’s caution was justified with the stock plunging a staggering 53.96% since.
American Eagle Outfitters, Inc. (NYSE:AEO) is a teen-focused apparel retailer with a significant mall presence, known for its denim and lingerie sub-brand Aerie. Commenting on the stock’s recent negativity, Cramer highlighted the discrepancy between the company’s outlook and the analysts’ outlook, saying:
“There’s this outfit American Eagle Outfitters, AEO, and when you read the comment today, you would, the commentary from the analyst, it’s just a disaster. If you read the actual conference call, almost everything is really great. But you can easily pull lines.”
7. Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 45
When asked about Estée Lauder Companies Inc. (NYSE:EL), Cramer dismissed the stock as overpriced at the time. He didn’t provide much detail but advised viewers to wait.
“Too high, my man. I just think… too high. Let that one come in. Too new, too high.”
Cramer’s warning was correct and timely as the stock collapsed by 54.24% after those comments.
Estée Lauder Companies Inc. (NYSE:EL) is a global leader in prestige skincare and cosmetics, but has recently struggled with weak demand in China and a slow recovery in travel retail. When asked about it again more recently, Cramer did not hesitate to express his distaste for the stock, saying:
“No… Estee Lauder is one of the worst companies I’ve ever invested in. I don’t want you to do that. As a matter of fact, I got 499 others that I like more.
6. Cintas Corporation (NASDAQ:CTAS)
Number of Hedge Fund Holders: 56
Cintas Corporation (NASDAQ:CTAS) was mentioned by Cramer alongside Ecolab as a strong performer catering to small businesses. He gave it as a bonus pick in that same call.
“I’m throwing in Cintas. I’m giving you Ecolab and Cintas. Kings of the small business world.”
His praise for Cintas as a small business leader was confirmed with a 24.20% rise.
Cintas Corporation (NASDAQ:CTAS) is a leading provider of corporate uniforms, facility services, and safety products, serving over one million businesses in North America. While talking about the recent market turmoil in April, Cramer recommended the stock, saying:
“Small and medium sized businesses I think could still do well and I’ve been recommending people look at service companies. I think that those can do well. Domestic service, you know I’m talking about like a Cintas.”
5. Ecolab Inc. (NYSE:ECL)
Number of Hedge Fund Holders: 59
Cramer was asked about Ecolab Inc. (NYSE:ECL), a water and hygiene solutions company. He gave a positive take based on his personal experience and the company’s reputation.
“Haven’t been a customer of theirs—I mean, they just clean up. You gotta be—hey, I’m going to give David twofer. Why not give David twofer? He calls, he’s always good. I’m throwing in Cintas. I’m giving you Ecolab and Cintas. Kings of the small business world.”
Cramer’s endorsement aligned with a solid 9.19% gain for the year.
Ecolab Inc. (NYSE:ECL) provides water treatment, hygiene, and infection prevention solutions across industries like hospitality, food service, and healthcare.
4. DoorDash, Inc. (NASDAQ:DASH)
Number of Hedge Fund Holders: 88
Cramer was asked about DoorDash, Inc. (NASDAQ:DASH) at a time when competition from Uber and Instacart was increasing. He stood by CEO Tony Xu and remained bullish on the company’s direction.
“Okay, well look—it’s an expensive stock, but I believe in Tony Xu. I have believed in Tony Xu when it was private and when I owned restaurants, and I think he’s doing a terrific job. I actually liked the quarter. I think people were way too quick to say it wasn’t great. They, I think, will be judged harshly.”
Cramer backed the CEO and got it right as the stock surged 53.16% since then.
DoorDash, Inc. (NASDAQ:DASH) is the largest food delivery platform in the U.S., expanding into convenience and grocery delivery as it competes with Uber Eats and Instacart. Here’s what Cramer said about the stock ahead of its earnings this May:
“After the close, we got a couple of companies that have caught the fancy of younger viewers, DoorDash and Dutch Bros. I expect both to have very strong quarters that can send their stocks higher.”
3. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 83
In an older episode, Cramer revisited Palo Alto Networks, Inc. (NASDAQ:PANW) following its sharp post-earnings selloff in February, where the stock dropped over $100 overnight. He explained that despite initial panic over guidance, his Charitable Trust continued buying on the dip. Here’s what he said:
“When Cramer fave Palo Alto Networks, PANW, reported in late February the stock plunged from 366 to 262 overnight. We freaked out about cautious guidance and some seemingly scary comments on the conference call. But what did we do? The charitable trust bought the whole way, and it’s now gradually started working back. It’s now at 305 and change. Because I’m a big believer in Palo Alto because the demand for cyber protection is endless, especially now that the hackers have access to AI and this company is the most comprehensive sweet of solutions out there.”
Cramer’s call to buy the dip proved right as the stock rose by 23.46% since then.
Palo Alto Networks, Inc. (NASDAQ:PANW) is a top cybersecurity company offering AI-driven threat detection, firewall solutions, and cloud security services for enterprises worldwide. Cramer believes there’s still upside for the sock. Here’s what he said in April:
“I happen to like Palo Alto Networks too because there’s just so much work to do in this space. It’s why we own both CrowdStrike and Palo Alto for the charitable trust and I never violate my diversification rules. These two stocks are too good!”
2. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 55
In that older call, Cramer was asked whether the sharp drop in Cloudflare, Inc. (NYSE:NET) was a reason to panic or an opportunity. He backed the company’s leadership and encouraged viewers to buy the dip.
“All right, so chill, man. Looked at that quarter several times, read the conference call—don’t think Matthew Prince has lost his charm. I say you buy, buy, buy right here.”
Cramer’s dip-buying conviction paid off big with a stunning 64.18% gain.
Cloudflare, Inc. (NYSE:NET) runs a global content delivery and internet security network, protecting websites from cyber threats while optimizing web performance and scalability. Following the company’s great performance, Cramer recently praised the company’s CEO in May:
“Two winners after the close, McKesson, the ultimate drug middleman with the target on its back that’s never, never been hit, and Cloudflare, yes, the cybersecurity firm brought to you by Matthew Prince, who gave you a superb number last time, remember. I bet he can do it again.”
1. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 64
Cramer discussed Palantir Technologies Inc. (NASDAQ:PLTR) in the context of its mixed earnings guidance despite strong reported growth at the time. He expressed continued support for the stock and gave a buy rating, saying:
“I liked that conference call very, very much. I thought that Karp did a great job. I want to go to one of those boot camps and do a big piece on it. I say not to worry—that company is a good company to own right here, right now.”
Cramer’s bullish stance was one of his best calls, with the stock rocketing over 416% since then.
Palantir Technologies Inc. (NASDAQ:PLTR) builds powerful data analytics platforms like Gotham and Foundry, used by governments and Fortune 500 companies for intelligence, defense, and enterprise operations.
However, following the stock’s explosive growth over the past year, Cramer has now started to call it a meme stock. Here’s what he said a few days ago:
“Well Palantir’s going to 150, what can I tell you, it’s a meme stock, they won’t stop, they start buying Palantir at around three forty-five. I’m gonna get up at three forty-four and watch them levitate that stock. It is the greatest meme stock I’ve ever seen. . . those guys, I bask in their success. It’s all they do in their lives, and that’s what their lives are about. And I salute them. They have big lives.”
PLTR is a stock Jim Cramer recently discussed. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. 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.
Hedge Fund Resource Center