On Tuesday, Jim Cramer, the host of Mad Money, challenged the persistent negativity he has observed on Wall Street.
“Enough with the knee-jerk negativity, people. It’s really starting to cost you a lot of money. Today, like so many other days, so many stocks got deep in the hole only to recover as the session went on.”
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Referring to the severe pessimism seen last Friday, Cramer dismissed some of the more alarming narratives circulating among investors. He recalled how some claimed the market was entering a major decline, fueled by concerns over the president. Yet, he pointed out that in investing, the primary focus should be on company performance and profits, which have remained strong. Despite this, he noted that many investors remain fearful and pessimistic, influenced by the belief that a market downturn is inevitable.
“There are too many people who think that Trump is going to wreck this market like we saw in April, but I think he did his very best to wreck the market on Liberation Day, and it still didn’t work. There are too many people who think interest rates aren’t coming down. They sure are after that labor report.”
Cramer acknowledged concerns that tariffs might significantly hurt corporate profits, but he emphasized that the impact has not yet materialized in a meaningful way. He also commented on investors’ hesitancy to buy stocks when prices fall and said that he “can’t help any of those people.”
“But the bottom line: I can still point out that the companies themselves are doing a bang-up job in spite of all these negatives or more likely perceived negatives, and that’s all that matters.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on August 5. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the first quarter of 2025, which was taken from Insider Monkey’s database of 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).
Jim Cramer Put These 13 Stocks Under the Spotlight
13. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer put under the spotlight. During the episode, Cramer noted that the company’s CEO “keeps delivering.” He said:
“Palantir’s revenue growth accelerated to 48% and its adjusted operating margin stands at 46%. That’s an extraordinary combination that yields the score of 94, that’s on the Rule of 40 test. I follow a huge number of stocks. I don’t know a single other one even remotely near that terrific number. Palantir may be incredibly ridiculous on earnings per share, but on Rule of 40 yardstick, it’s ridiculously cheap. I’m not kidding. Mind you, Palantir’s exalted status is not based on small numbers. They had a billion dollars in revenue this quarter. Two years ago, they did $2.2 billion in revenue over the course of the entire year. What makes Palantir so elusive? First is the seemingly bombastic claims of CEO, Alex Karp. He says that because his company is hyper-efficient, he expects to get 10 times the revenue that the company has with 3,600 employees. They now have 4,100 employees. People hear that and they say that’s absurd. But I’m willing to give Karp the benefit of the doubt because he keeps delivering…
He sounds like a paranoid maniac, but… he’s a sane speaker. The bluster has scared professional money managers away from the stock, even as it delights the amateurs who beat the stock up endlessly both before and after the market. I’ve been behind it the whole way… We’re already well on our way. How did I know this? Because of the Rule of 40 valuation method, and it truly does work. Palantir might be able to keep working its magic for years… But if the stock’s going to keep climbing, the bears need to keep betting against it. Those are the people who don’t understand Palantir’s greatness. They’re the ones whose backs this remarkable run is built upon. Once all the bears become bulls, that’s when you run out of upside. Fortunately, that hasn’t nearly happened yet.”
Palantir (NASDAQ:PLTR) develops software platforms like Gotham, Foundry, Apollo, and its AI Platform to help users analyze complex data, support operational decision-making, and integrate AI across large-scale organizational systems.
12. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 76
Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the stocks Jim Cramer put under the spotlight. A caller asked if they should sell, considering that they are up 800% in the stock. Cramer remarked:
“Alright… you made my life very easy. Here’s what you do: You take out your cost basis, you sell your cost basis tomorrow, and then you can’t lose. You’re playing with the house’s money, my friend, and you’re going to really crush it.”
Robinhood (NASDAQ:HOOD) provides a financial platform for investing in stocks, crypto, and other assets, along with tools like margin trading, retirement plans, and joint accounts. The company also offers educational content, digital wallets, spending products, and a global crypto marketplace. During a July episode, Cramer mentioned the company and stated:
“Do I have to describe Robinhood to you? It’s an app. No, it’s a bank. No, it’s a repository of wealth of the millennials, whatever you want to call it. Robinhood has 25 million accounts, and it offers ETFs, options, gold, and crypto. It came out of nowhere. This company was worth $11 billion two years ago. Now it’s $88 billion. Again, incredibly profitable. Out of nowhere, it seems to have captured young people who would otherwise not bother to invest. You know what I say? Hallelujah.”
