On Tuesday, Mad Money host Jim Cramer discussed the market dynamics that have emerged following President Donald Trump’s recent shift away from his previously aggressive stance on tariffs.
“All day, I heard that the market went higher because we had a cooler-than-expected Consumer Price Index number. Okay, it’s true, inflation only increased by 2.3%, less than expected. That’s right where the Feds should be willing to cut rates if the economy softens. But long-term interest rates actually went up today, not down, so clearly nobody’s betting on rate cuts.”
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Cramer pointed out that it suggests market participants are not positioning themselves for rate cuts just yet. The sharp rally also created a logistical problem for short-sellers, who were caught in a bind. Cramer noted that the size of the market was insufficient to allow those betting against stocks to both cover their positions and buy in quickly enough to benefit from the upswing. He said that it is a pivot from “Trump Two”, the version of the president focused heavily on tariffs, to “Trump One,” who, while still advocating for tariffs, appears more interested in using them as negotiating tools rather than fully enforcing them in a way that could tip the economy into recession.
By stepping back from the brink of imposing sweeping tariffs, Cramer argued, the risk of unchecked inflation has been reduced. He noted that this, in turn, makes it easier for the Federal Reserve to lower interest rates down the line if needed. He commented that it can lead to “a far more positive backdrop in the future”.
“The bottom line: The bears are paying the price while the individual investors who held on are basking in the glory of one of the greatest rallies ever, as the president ultimately made the extremely rational decision to not destroy the entire stock market. Maybe more of us should have seen that coming, especially when he told us it was a great time to buy, and indeed it was. What a call.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 13. We listed the stocks in ascending order of their hedge fund sentiment 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).
Jim Cramer Put These 8 Stocks Under a Microscope Recently
8. Roku, Inc. (NASDAQ:ROKU)
Number of Hedge Fund Holders: 37
When a caller asked Cramer about Roku, Inc. (NASDAQ:ROKU), he commented:
“Alright. You know, there’s been a bunch of people who don’t like Roku. I’m not going to join that gaggle. I think the stock has some upside because they are doing some pretty terrific things in streaming, so I’m okay with it.”
Roku (NASDAQ:ROKU) runs a streaming platform that provides access to a broad selection of content. The company provides advertising and subscription services, sells streaming devices, Roku-branded TVs, smart home items, and audio products. It also enters licensing deals with service providers. JDP Capital Management stated the following regarding Roku, Inc. (NASDAQ:ROKU) in its Q4 2024 investor letter:
“Roku, Inc. (NASDAQ:ROKU) was down 15% in 2024 closing at $77.38 per share, about 20% above our cost basis. The company has an enterprise value of about $9 billion, no debt, and trades for a little over 2x estimated 2025 platform revenue (hardware revenue excluded).12 Roku has been undervalued and under-owned for so long that a positive re-rating of the stock to an acquisition value would justify a multi-bagger return…
Roku has not been able to shake its reputation as a posterchild for the COVID-era stock boom. What started as a slowdown in platform revenue in 2022 morphed into a bearish narrative that the company lacks a competitive advantage and pricing power in Connected TV advertising (a narrative that plagued Spotify’s stock for years).
The way we consume TV has changed dramatically over the last few years. When I first started researching Roku in 2016, most TVs were not connected to the internet. The consensus view at the time was that streamed TV content could only be a niche at best compared to cable TV…” (Click here to read the full text)
7. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 43
Praising SoFi Technologies, Inc. (NASDAQ:SOFI), a caller inquired about it, and Cramer replied:
“Oh, I like SoFi. We’ve been back, you know, Anthony Noto knows we have been behind this thing the whole way, and you know what? It gets thrown back at this level, I am not concerned. I think it goes to new highs.”
SoFi (NASDAQ:SOFI) provides lending, banking, insurance, and investment services, which are all accessible through a single digital platform. When Cramer was asked about the company in March, he advised investors not to panic, as he commented:
“Let’s not worry. Let’s not worry. Okay, this is run by Anthony Noto. He is doing a super job. I know that right now, stocks are for sale. I don’t want you to sell it. It can come down a little bit more. Do not panic. The company’s in good hands and the stock was up a great deal not that long ago. I think you’re fine. I’m not saying it can’t go to $10, I am saying that Noto’s money.”
6. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 51
A caller asked Cramer’s opinion of Constellation Brands, Inc. (NYSE:STZ), and here’s what Mad Money’s host had to say:
“Oh, I know it’s trying to bottom, but you know what? The beer business is soft. The spirit business is not so good, and frankly, I expected more from the company. I think the company has been a very big disappointment, and I just have to say, I don’t need to be in stocks that have been disappointing. I’m sorry. I wish it were doing better for certain, my wife’s in that business itself, but I don’t see it.”
Constellation Brands (NYSE:STZ) is a large producer and distributor of beer, wine, and spirits. The company sells beer through a variety of brand names. Appearing on Squawk on the Street in April, Cramer said:
“A rather shocking guide down. Beer will be flat no longer 7% to 9% two years. They got Modelo, which is the number one brand. What this says is, without a doubt, that alcohol continues to slow. Consumption continues to slow. We don’t know. Now, this company over-indexed for Hispanics. There’s always a chance that perhaps Hispanics are unfortunately laying low because of what’s ever happening in our country. That’s what’s happened before. But what’s more important is GLP-1. The craving for beer is no more than the craving for sparkling water. So I’d rather have a sparkling water. There’s big studies going on right now that show that. And no one in the industry is willing to admit it. […]
So for me to just say, you know what, people have decided, I don’t like the taste of that, no. There’s no craving. And I think that when you look at these beer numbers from Constellation and you see what’s happening to the deterioration in their numbers, you understand why this stock is down. […]
[Asked about whether they were hit by any tariffs on Mexico] No, they’re going to be OK. They’re going to be all right. But what matters is consumption, and consumption is not good. Now, once again, no one in the industry will admit what I just said, but I’m in the damn industry, so I don’t really care what they said. That’s what I do for, well, it’s what my wife does for a living. I see the numbers of these other kinds of alcohols, and they’re shocking.”
5. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 59
A caller asked if they should buy more, hold, or sell United Parcel Service, Inc. (NYSE:UPS) stock. In response, Cramer said:
“I think that FedEx is going to clean their clock, frankly. I think that Raj Subramaniam’s a better operator, and you’re on the wrong horse. I’m sorry. I thank you for the kind words, but you are on the wrong horse. [don’t buy, don’t buy]”
United Parcel Service (NYSE:UPS) provides transportation, distribution, contract logistics, ocean freight, air freight, customs brokerage, and insurance services. When a caller asked about the company in April, Cramer said:
“Look, I think that, you know, rug burn aside… I do think that you’re going to run into a little trouble because world trade is not what we think it is. And look, I really like FedEx, and I’m not just sitting here pounding the table on FedEx either, so we gotta be careful…”
4. GE HealthCare Technologies Inc. (NASDAQ:GEHC)
Number of Hedge Fund Holders: 64
A caller asked if GE HealthCare Technologies Inc. (NASDAQ:GEHC) is worth another look, and in response, Cramer said:
“Okay, now you know, you’re a club member, you know I sold a lot in the high 80s and then gave up on the rest. The reason I did was because it’s inconsistent and too controlled by China, not America. So I am not going to be a backer. I am going to say the fabled [don’t buy, don’t buy, don’t buy].”
GE HealthCare (NASDAQ:GEHC) develops, manufactures, and markets a range of products, services, and digital tools that support the diagnosis, treatment, and monitoring of patients. The company reported a 3% year-over-year increase in revenue for the first quarter of 2025. The adjusted EBIT margin rose to 15.0% from 14.7%, and adjusted EPS increased to $1.01 from $0.90. Furthermore, free cash flow declined to $98 million, down from $274 million in the same quarter last year.
3. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 80
Noting that the stock is up nearly 69% over the last 12 months, a caller inquired about AT&T Inc. (NYSE:T). Here’s what Cramer had to say:
“I will tell you this, I will tell you this, I think it is going in the right direction, and I would be a buyer of AT&T.”
AT&T (NYSE:T) offers various telecom and technology services, including wireless voice, data plans, broadband internet, cloud solutions, and managed services. TCW Relative Value Large Cap Fund stated the following regarding AT&T Inc. (NYSE:T) in its Q3 2024 investor letter:
“AT&T Inc. (NYSE:T), based in Dallas, TX, is a nationwide provider of voice, video, and data communications services to businesses and consumers in the wired, wireless, and broadband. At initiation, the stock had a $141 billion market capitalization and met all five valuation factors with an above market dividend yield of 5.6%. From a sustainability prism, the company completed its commitment to invest $2 billion by the end of 2023 to help bridge the digital divide. AT&T is working on enabling low-income households to access to low-cost broadband services through its Access service plan as well as reaching out to more rural communities and Tribal lands where internet access remains a challenge. It is nearly 85% the way to providing one million people in need with digital resources through AT&T Connected Learning® with the goal to be reached by the end of 2025. In 2020, the company announced that it is committed to be carbon neutral by 2035 with zero carbon emission across all operations. It is deploying Smart Climate Solutions – through efforts like its Connected Climate Initiative – that will help enable its business customers to reduce their emissions as well. The company’s goal is to help collectively reduce its emissions by one billion metric tons – a gigaton – by 2035, compared to 2018 levels. The primary catalysts are new/strong management and restructuring. John Stankey was appointed CEO in July 2020 and he is committed to refocusing the company and improving its financial performance. The company combined its WarnerMedia operation with Discovery during 1Q:22 which eliminated AT&T’s exposure to the rapidly evolving media industry and refocused its core telecommunication business thus eliminating a major drag on profitability and the company’s balance sheet by reducing long-term debt from a peak $176 billion during 2020 to $142 billion at the end of June 2024 quarter. AT&T is moving aggressively to reduce cost and sell non-core assets such as its advertising platform Xander to Microsoft† which was accomplished during 2022. The company has redesigned its network to be software driven structure reducing the capital investment cycle in its national network – resulting in a network that is flexible with unrivaled speed and reliability – thus enhancing its nationwide position. By the end of 2023, it expanded its 5G network to reach more than 302 million people in nearly 24,500 cities and towns in the U.S. The company’s mid-band 5G+ network alone grew to cover more than 210 million people. AT&T is one of the largest investors in digital infrastructure in the U.S. Over the five years ending 2023, the company invested nearly $150 billion primarily in its wireless, fiber optics, and wireline networks. The extensive restructuring and refocusing of AT&T on its core business should result in improved earnings and cash flow while at the same time reducing uncertainty for shareholders.”
2. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 103
A caller inquired about The Boeing Company (NYSE:BA) during the episode, and here’s what Cramer had to say:
“I continue to pound the table on Boeing ever since Kelly Ortberg got in and they raised the capital. It’s going to be up again tomorrow… I just listened to Phil LeBeau talk about the monthly deliveries. They’re fantastic. You must stay long [on] Boeing.”
Boeing (NYSE:BA) focuses on designing, developing, producing, and selling a range of products, including commercial planes, military aircraft, satellites, missile defense systems, and space exploration projects. In April, when Cramer was asked about the company, he said:
“I just think that if we don’t respond correctly to help Boeing instead of just picking on all the time, and then the old regime did do some things wrong, then Boeing’s going to be a tough stock to own, but they do have a lot of cash. They don’t have great cash flow. I think it’s okay. I’d rather, I’m picking other ways to play aerospace now because Boeing seems to just had, it’s snake bit. What can I say?”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) was mentioned during the episode, and here’s what Cramer had to say:
“As those who shorted the market now realize, the President’s pivot was wildly bullish for the very companies that had previously been hit the hardest. Take NVIDIA. On the one hand, Trump effectively forced NVIDIA to take a $5.5 billion charge for chips it could no longer sell to China. On the other hand, he’s now out there helping NVIDIA sell chips to some of the biggest clients in the world, the Gulf monarchies. NVIDIA stock has made a historic comeback [buy, buy, buy]… It’s a big deal for the Saudis because they weren’t on the arbitrary, capricious list of 18 friendly countries that President Biden approved to buy NVIDIA’s best technology. Now, instead of 18 friends, we got a whole bunch of friends that can buy NVIDIA’s top chips. I see many new mini hyperscale or sovereign AI countries developing.”
NVIDIA (NASDAQ:NVDA) is known for its work in graphics, computing, and networking technology. The company is especially noted for its graphics processing units and the CUDA software platform.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 NVDA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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