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Jim Cramer on Dutch Bros (BROS): “Dutch Bros Has the Edge Over Starbucks”

We recently published a list of 21 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where Dutch Bros Inc. (NYSE:BROS) stands against other stocks on Jim Cramer’s radar.

On Friday, Mad Money host Jim Cramer discussed this week’s main market drivers and placed emphasis on earnings reports and recent economic data.

“When you get a strong employment report like we did this morning, it does a lot of things that you need to know about. First, it takes a near-term recession kind of off the table. Very difficult to have recession with a 4.2% unemployment rate. That’s just too much demand for workers.”

READ ALSO: Jim Cramer’s Thoughts on These 13 Stocks and 8 Stocks on Jim Cramer’s Radar Recently.

Beyond that, Cramer pointed out that strong employment data also influences the Federal Reserve’s thinking, especially ahead of this week’s policy meeting. He explained that a tight labor market discourages the Fed from lowering interest rates.

Lastly, he noted that this kind of labor report can trigger a strong rally in stocks, provided that wage inflation remains under control. Cramer emphasized that while the government releases a constant stream of economic figures, none carry the same weight as the jobs report. He noted, “That is the real predictive power when it comes to the stock market.”

“So keep in mind that today’s rally may not be one off as we go through our game plan for next week. But first, let me just say we’re over the hump. We’ve now had companies that reported fabulous numbers.”

Furthermore, another driver behind Friday’s market surge, according to Cramer, was news out of China suggesting a possible diplomatic overture. He said the rally accelerated after reports surfaced that Chinese officials were considering a deal involving tougher action against fentanyl. If the proposed agreement materializes, Cramer believes it could extend the rally further. He said, “If that comes true, I expect this rally will have legs.”

“Here’s the bottom line: We know that we’re living through a time of great tumult. We could easily be thrown off if President Trump responds harshly to this Chinese olive branch this very weekend. If that happens, there could be some unwinding to do. Right now, though, it looks like the momentum can keep up as long as we don’t get a total breakdown in the nascent trade talks between the world’s two biggest nations.”

Our Methodology

For this article, we compiled a list of 21 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 2. 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).

A closeup of a customer tasting a freshly-made cold brew coffee product from the company’s shop.

Dutch Bros Inc. (NYSE:BROS)

Number of Hedge Fund Holders: 41

Ahead of Dutch Bros Inc. (NYSE:BROS) first quarter earnings report, Cramer commented:

“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. We’ll have the inevitable comparisons between Dutch Bros and Starbucks. Oh, all I can say is that the Bros have the edge right now, but I like them both, and I don’t know, did you see Starbucks starting to move up here?”

Dutch Bros Inc. (NYSE:BROS) runs and franchises drive-thru shops across the U.S. under several brands, including Dutch Bros Coffee and Dutch Bros Rebel.

Overall, BROS ranks 14th on our list of stocks on Jim Cramer’s radar. While we acknowledge the potential of BROS 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. 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 BROS 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. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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