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.”
11. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 82
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the stocks Jim Cramer put under the spotlight. A caller inquired if they should continue to hold the stock given its low PE. Cramer replied:
“I think QUALCOMM could go up because… Skyworks reported a good number, which is highly unusual. Tomorrow, I think QUALCOMM goes up, and then I want you to [sell, sell, sell].”
QUALCOMM (NASDAQ:QCOM) develops wireless technologies and supplies chips and software for mobile, automotive, and IoT products. Moreover, the company licenses its patent portfolio and invests in early-stage companies across sectors like 5G, AI, and extended reality. Mairs & Power stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q1 2025 investor letter:
“The Information Technology sector underweight had the largest relative impact on returns during the quarter. Only one of the Fund’s technology holdings posted a positive quarterly return – QUALCOMM Incorporated (NASDAQ:QCOM) – making this a somewhat hollow outperformance. Qualcomm is a “value tech” company which has enviable cash flows but we believe has been consistently underappreciated in the market for its technology licensing business, which has frequently been targeted for legal action by some of its major customers. However, we believe it continues to prove its best-in-class technology and, despite companies attempting to circumvent Qualcomm, we continue to see a long-term position in the wireless technology space for the company.”
10. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the stocks Jim Cramer put under the spotlight. During the lightning round, a caller asked about the stock, and in response, Cramer said:
“Palo Alto is a buy here. We were going to buy some for the Charitable Trust. I can’t emphasize enough. This stock is now down from 210, I think you got a real good idea.”
Palo Alto (NASDAQ:PANW) provides cybersecurity platforms for cloud, network, and security operations, including AI-driven threat detection, virtual firewalls, and attack surface management. Additionally, it provides threat intelligence, data protection, and professional services to organizations across various industries. When a caller inquired about the stock during a July episode, Cramer responded:
“I want to live in Palo Alto, and I want to own the stock of Palo Alto. That’s how I feel about it. Nikesh Arora, doing a fabulous job.”
9. MNTN, Inc. (NYSE:MNTN)
Number of Hedge Fund Holders: N/A
MNTN, Inc. (NYSE:MNTN) is one of the stocks Jim Cramer put under the spotlight. Cramer commented on the company’s first-ever earnings report, as he said:
“We got the first-ever earnings report from Mountain, the ad tech company that helps small, medium sized businesses take advantage of connected TV advertising. It was a doozy. Mountain came public at $16 in late May, and in less than a month, it’s run to $31 and change [as] of tonight’s close. When Mountain reported after the close, we saw even more reasons to like it, better than expected revenue, better than expected earnings before interest, taxes, depreciation, and amortisation, not to mention the Ryan Reynolds seal of approval. He’s the chief creative officer. At the same time, management gave very strong guidance for the current quarter. Still, stock is trading lower after hours. I think it’s because the quarter included a large gap, bottom-line loss, something that’s really just a result of the IPO process. It should not matter to investors.”
MNTN (NYSE:MNTN) provides a performance TV advertising platform that uses audience targeting, real-time attribution, and advanced analytics to link ad views to consumer actions. The company’s tools include campaign planning, segmentation, creative building, and data reporting for marketers.
8. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 150
Netflix, Inc. (NASDAQ:NFLX) is one of the stocks Jim Cramer put under the spotlight. When a caller highlighted that the stock is receiving some hate despite the fundamentals looking good after the recent quarterly earnings announcement, Cramer commented:
“You know, you raise a great point. I mean, it has come down a great deal. When I saw it was down 23, I said, wow, they’re really taking the wood to this thing. And it’s a very, you know, it’s a very highly valued stock… Just give it that wide berth as you know, because you’re club members, you know, that’s how we think and that’s how I think you can build that position to the right size, right into the weakness.”
Netflix (NASDAQ:NFLX) provides streaming entertainment, including TV series, films, documentaries, and games across multiple genres and languages. The company’s content is accessible through multiple internet-connected devices. When a caller asked for advice on the stock during a June episode, Cramer responded:
“I mean, they are going to be the entertainment channel, so to speak, for the world. It’s worth $542 billion, that makes sense to me. I don’t want to double down because I think you might get an intraday swing at a point where you can buy some. But I’m not going to go against this company, which may be one of the best-run companies in the entire world, and I am not going to tell you to sell the stock.”
7. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 106
Spotify Technology S.A. (NYSE:SPOT) is one of the stocks Jim Cramer put under the spotlight. Cramer called the company the “best streaming audio platform” and commented:
“We know that the latest results missed the mark, and the guidance for the current quarter didn’t have much going for it. But is that enough reason to give up on a stock like Spotify that’s been a serial outperformer for years?… This is the best streaming audio platform around… They’ve acknowledged the shortcomings and laid out a plan to fix it. And look, despite the weakness in ad revenue, Spotify grew monthly active advertisers by 40% year over year. They also know that most of the heavy lifting on their ad tech stack is now complete…
Going forward, Spotify plans to focus on driving adoption, launching new advertising tools, and improving performance. They even said they’re seeing early signs of progress in their programmatic ad sales business. Pretty good, huh? One more positive, Spotify recently increased its buyback authorization from $1 billion to $2 billion, leaving about $1.9 billion still available. The company hasn’t bought back stock since 2022, but this expanded repurchase authorization signals that I think they might be getting ready to buy their own shares, right along with you.
… I never take competition with Apple or Amazon lightly, but Spotify’s still the clear market leader for a reason. For now, nobody else comes close… Even though Spotify’s latest quarter did indeed come up short, no one’s denying that, I think the total breakdown in the stock has created a tremendous buying opportunity, and this is a genuinely great franchise.”
Spotify (NYSE:SPOT) provides music and podcast streaming through subscription-based and ad-supported models.
6. Coterra Energy Inc. (NYSE:CTRA)
Number of Hedge Fund Holders: 43
Coterra Energy Inc. (NYSE:CTRA) is one of the stocks Jim Cramer put under the spotlight. During the episode, Cramer noted that it is the “only energy holding” in his Charitable Trust and remarked:
“Last night, we got results from the only energy holding in my Charitable Trust, which is called Coterra Energy. It’s an oil and gas exploration and production company. Frankly, it’s been a little frustrating to own, I mean, even though management executes well, the stock sports a 3.6% yield, it has a hard time getting traction, as do many of the oil and gas stocks. In the last 24 hours, the company reported a really fine set of numbers, 3-cent earnings, better than expected cash flow, really terrific cash flow, thanks primarily to strong production. Management also gave good production guidance for the current quarter, raised its full-year forecast. They also raised their capital expenditure forecast. Basically, they’re producing more oil, but they have to spend a little more on gas too. But after initially trading higher, then it turned down, and then it opened, then it went back up. But frankly, in the end, it’s an energy company, and right now, energy companies, they’re very tough to own.”
Coterra (NYSE:CTRA) explores, develops, and produces oil, natural gas, and natural gas liquids, with major assets across key U.S. basins.
5. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders: 104
GE Aerospace (NYSE:GE) is one of the stocks Jim Cramer put under the spotlight. When a caller inquired about the company, highlighting the institutional support for CEO Larry Culp, Cramer said:
“Yes, he does, but what should we do? Do you want to know what we think it can do going forward?… I think that… General Electric, now GE Aerospace, is going much higher. Will it go much higher right now? No, but this is one where you must, must, must stay the course. And I’m going to throw in another one for club members to know this, I think that GE Vernova is even better. Sorry, Larry. I really think GE Vernova is even better.”
GE Aerospace (NYSE:GE) designs and manufactures aircraft engines and related systems for commercial and defense use, along with providing maintenance and repair services. The company’s products include jet engines, power systems, and specialized components. During a July episode, when a caller inquired about the stock, Cramer replied:
“Oh, GE’s fabulous. GE is fabulous, and I want you to hold it. Now, I mean, look, the temptation would be to cut some off because it just had a giant move. If you want to trim a little, that’s fine, but I think that Larry Culp is going to tell a great story. It doesn’t mean it can’t come down. The stock is up in a straight line, up 53%. So, any stock can be vulnerable, but I think it is one of the best in the book.”
4. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer put under the spotlight. Cramer believes that the market is not reacting to the company stock as it should. He commented:
“Or can we just admit that it’s getting ridiculous how the market now hates Apple and Amazon, even if they did report really good numbers. Now, I know that each has its Achilles’ heel. Let’s trace it out… Amazon doesn’t have the right chips to get the big deal developer business away from OpenAI. But what the negativists don’t or won’t realize is that these are just money issues, and these two companies have all the money in the world. Amazon could call Jensen Huang right now at NVIDIA and say, you know what, I’ll take all the Blackwell chips that you can possibly make, plus 25% of the Vera Rubin chips that come out next year that are really fast, and it could win all the business back from OpenAI and go back to being king again…. In fact, Amazon’s already taking action. Little noticed blog post I saw today, tie up with OpenAI, which could keep Amazon Web Services customers from gravitating away from a system that’s perceived as inferior. When I saw that today, I thought the stock should be up, I thought it’d rally five points. Nobody cared.”
Amazon (NASDAQ:AMZN) sells consumer products, subscriptions, and ads, and also provides devices, media content, and services for third-party sellers and creators. The company operates Amazon Web Services for cloud computing and provides tools for developers, advertisers, and enterprises.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the stocks Jim Cramer put under the spotlight. Cramer discussed the AI moves that could push the company stock up. He stated:
“Or can we just admit that it’s getting ridiculous how the market now hates Apple and Amazon, even if they did report really good numbers. Now, I know that each has its Achilles’ heel. Let’s trace it out. Apple doesn’t have the AI strategy that it needs… But what the negativists don’t or won’t realize is that these are just money issues, and these two companies have all the money in the world… How about Apple? It could just go buy Perplexity. It’s got all the money. It doesn’t, wouldn’t even cost them that much, or it could buy the streams it needs for Perplexity, or it could pair up with Mark Zuckerberg at Meta AI and develop some really cool apps. I’m not going to go as far as to say Grok. Do any of these things, and the Apple stock will be up 50 points. That is not why Tim Cook does things, and I respect that, but it would move it 50 points.”
Apple (NASDAQ:AAPL) designs and sells devices like iPhone, Mac, iPad, and wearables, and provides services including cloud storage, support, and several subscription platforms.
2. Wayfair Inc. (NYSE:W)
Number of Hedge Fund Holders: 43
Wayfair Inc. (NYSE:W) is one of the stocks Jim Cramer put under the spotlight. During the episode, Cramer discussed the company in light of tariff news, as he commented:
“The tariffs, most companies are mitigating them fairly well, not as well as Wayfair, the online furniture store that a lot of wise guys were busy shorting, not realizing that Wayfair may have the single best logistics operation out there, locating low or untariffed merchandise to keep prices down. The shorts thought that Wayfair was hostage to China and other high-tariff countries. They were wrong. And this stock shot up and just gaffed the shorts, I mean, like I haven’t seen in a long time.”
Wayfair (NYSE:W) operates an e-commerce platform that provides furniture, décor, and home goods through multiple retail sites and private-label brands. The company’s online storefronts serve both individual consumers and professional clients. Recurve Capital stated the following regarding Wayfair Inc. (NYSE:W) in its Q1 2025 investor letter:
“We fully exited Wayfair Inc. (NYSE:W) in May after owning it for about four years. We had given the company plenty of rope to right the ship and return to growth, but it has been unable to do so. It is hard to pin down exactly why they’ve been able to gain share (i.e. grow faster than the market, i.e. shrink less than the market), but not grow in absolute terms. The succinct summary is that we believe Wayfair does not have a differentiated enough value proposition to be a secular winner. It can be an “alpha” winner by slightly outperforming its end market, but it is not disruptive enough to grow through choppier periods. We were extra patient with Wayfair because of the exceptionally severe industry headwinds it faced, but enough time has passed to convince us that it is more “alpha” than “secular.”
We sold Wayfair at what was likely an inopportune price during the recent tariff-induced drawdown. However, our approach is to exit whenever we lose faith instead of hoping to sell at a higher price. In truth, this process of losing faith began in the second half of 2024 and it took me a disappointingly long time to arrive here. Even though we lost money on the Wayfair investment, we certainly earned some precious scar tissue that will surely help our idea filtering and portfolio sizing processes in the future.”
1. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 62
Caterpillar Inc. (NYSE:CAT) is one of the stocks Jim Cramer put under the spotlight. During the episode, Cramer called the panic sellers who sell before the company’s conference call “morons.” He said:
“I’m about to have a book coming out, it’s called… How to Make Money in Any Market. One of my axioms is there’s never, never, never anything to do with the stock of Caterpillar when it reports until you’ve listened to the conference call. Do you know that when I was doing my final draft, I almost took it out. Why? Because I’ve said it so many times. I thought people would be bored by it. Sure enough, the CAT number prints this morning. I know the earnings are irrelevant because the stock trades on inventories and orders, which you don’t get until the conference call. But no, the negatives they want to get out so badly, they sell it down 20 points in pre-market trading, 20 points. And then what happens when they’re done? The stock’s then rallied 25 points from there… Why? Because the orders were great, because the inventories are low. Now, I have a word for these panic sellers. They’re called morons.”
Caterpillar (NYSE:CAT) designs and sells machinery and engines for construction, mining, energy, and transportation, along with related parts, services, and financial products.
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