On Tuesday’s episode of Mad Money, host Jim Cramer discussed the risks associated with investing in speculative stocks.
“We’ve had a huge wave of debt-fueled speculation that now threatens to wipe out your savings in a heartbeat. These stocks have been moving straight up for a long time now, and there’s a huge cohort of people who only know how to chase them and nothing more.”
READ ALSO Jim Cramer Was Focused on These 13 Stocks Recently and Jim Cramer Recently Covered These 10 Stocks
Cramer clarified that while he supports speculation, it must be approached intelligently. He explained that investors need to dig deeper, starting with a basic understanding of what the company actually does. He said it is important to know how a company generates revenue, whether it is profitable, and whether it is involved in something unique or proprietary. Cramer also reminded investors to consider whether the company’s future profits could ever realistically justify its current market price. He noted that it is not enough to rely on momentum.
“So if you can’t describe what a company does and how it makes money, assuming it makes money at all, then I gotta tell you, it’s not too late to sell. Nail down those profits with these specs, please… If you stick around, there’s a good chance you’ll lose all of your gains. And if you borrow money to buy these things, you’ll lose a lot more than that.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on October 21. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Recently Answered Questions About These 10 Stocks
10. Innodata Inc. (NASDAQ:INOD)
Number of Hedge Fund Holders: 16
Innodata Inc. (NASDAQ:INOD) is one of the stocks Jim Cramer recently answered questions about. A caller sought Cramer’s opinion of the stock, and he replied:
“Yeah, digital content. I actually like this company. It’s [got] a very high price to earnings multiple, but it does at last make money. I at least got to end the… lightning round on one company that seems like a very real company.”
Innodata Inc. (NASDAQ:INOD) provides data engineering and AI services, including data preparation, annotation, and model training. In addition, it offers platforms for digitizing medical records and managing marketing and media communications. During February 21’s episode, Cramer discussed the stock and said:
“What a stock. I mean, yeah, you were right. You’re right. It’s a high multiple stock and it didn’t get hit today. How about that? That is what I call a hero stock.”
Since the above comment, the stock has gained over 24%.
9. Rigetti Computing, Inc. (NASDAQ:RGTI)
Number of Hedge Fund Holders: 17
Rigetti Computing, Inc. (NASDAQ:RGTI) is one of the stocks Jim Cramer recently answered questions about. When Cramer was asked about the company during the lightning round, he said:
“You mean the one that just had a giant seller, a giant insider selling, a director. No, I don’t want to be there. Giant insider selling does not work for me.”
Rigetti Computing, Inc. (NASDAQ:RGTI) develops and operates superconducting quantum computers and provides access to its systems through cloud-based quantum computing services. When a caller inquired about the stock during the August 27 episode, Cramer commented:
“Okay, here’s my view on quantum computing: it is for real. Is Rigetti my favorite? No, but Rigetti’s one that could have a headline tomorrow. It’s like Oklo… And I said… enough, I can’t take it anymore. I think that this one’s like that. Rigetti could have something that could be a home run. I don’t want to keep you out of it. But it is a speculation, please remember that.”
