We recently compiled a list of the Jim Cramer Highlighted Buying Opportunities in 13 Stocks. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against the other stocks Jim Cramer recently talked about.
Jim Cramer, the host of Mad Money, took a moment on Wednesday to reflect on the latest market developments as earnings season progresses, sharing his thoughts on how investors can identify stocks that are unfairly punished and present solid buying opportunities.
“This market has the memory of a mayfly that creates a ton of opportunities so… I want to help you find them.”
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Cramer stressed that time and again, he has seen growth stocks severely impacted by minor bits of bad news, such as small downgrades or slight concerns about a quarter’s performance. In these cases, he noted, the punishment rarely fits the crime, if a real issue even exists.
Cramer also recently weighed in on the ongoing trade tensions with China. He urged Wall Street to start taking President Trump’s policies more seriously, pointing out that Trump had negotiated a deal that granted China a much lower tariff than Canada received. Cramer dismissed the idea that China’s response was an equal counterattack, calling such a notion “nonsense” and “idiocy.” He added:
“Now, if Wall Street took Trump seriously, they’d know that China played softball with its retaliation just like Trump played softball with that 10% tariff.”
He elaborated that much of the recent panic, which had escalated on Sunday night, shifted a bit to optimism, as people began to realize that the president had managed to negotiate a deal. Acknowledging the presence of hardliners within the White House who are keen on taking a tougher stance on China, Cramer noted that those individuals had lost the battle.
He pointed out that Trump’s objective was to broker a deal that could generate revenue for the U.S. Treasury while providing American businesses with opportunities in China. Cramer emphasized that this goal should have been clear to anyone who had been watching the Chinese stock market, as stocks that trade in China surged recently.
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money on February 5. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 99
Cramer noticed a pattern where Tesla, Inc. (NASDAQ:TSLA), the leading EV company, gets sold off on some piece of news and then soars when it is praised by “some accolade-loving person”.
“Now we see this pattern constantly. Tesla will sell off over something, I don’t know, maybe it’s German numbers, it’s California numbers, it’s China business. I heard today that people have stopped buying Teslas because Musk turned out to be a Trumpist. I say, so what? He’s gonna solve the self-driving conundrum. Of course, Tesla always has some accolade-loving person who comes on our air and blesses it and says it’s worth a thousand dollars and it’s off to the races again and that will happen. That will happen.”
Cramer has been praising Tesla (NASDAQ:TSLA), not because of its CEO’s position in the political sphere but Elon Musk’s abilities as a CEO. Before the company reported its earnings in January, Cramer remarked:
“Alright, then there’s Tesla. Now I think Elon Musk, get this, I think he could sell tickets to this conference call. He could command a thousand dollars, easy. The last time Tesla reported, missed numbers badly and then it proceeded to have one of the biggest runs ever. Just soared right when it reported that number, and I’ve gotta tell you, I figured it out. Actually, Morgan Stanley’s, Adam Jonas figured it out for me. He calls Tesla, after that quarter, an AI ETF. People want an IETF so they buy the stock no matter what, especially if it’s down the next day. I want you to own Tesla. Just own it.”
Over the past year, Tesla (NASDAQ:TSLA) stock has gained over 100%.
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Disclosure: None. This article was originally published at Insider Monkey.
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