On Monday’s episode of Mad Money, host Jim Cramer took time to highlight a group of stocks that he believes have captured the attention of retail traders and built substantial momentum.
“These PARC (Palantir, AppLovin, Robinhood, and Coinbase) names are emblematic of how stocks have devolved into a two-track market. There’s the S&P 500, and then there’s this handful of stocks that retail investors have anointed and relentlessly taken up, without any real bounds.”
READ ALSO: Jim Cramer Shed Light on These 14 Stocks and Jim Cramer Reflected on These 17 Stocks.
Cramer pointed out that although most of the PARC stocks eased back slightly on Monday, they did not crash, and emphasized that it was more of a pause than a decline. He mentioned that while his acronym PARC refers to the four companies, he clarified that they are also representative of a broader movement happening across the market, where retail-driven names continue to defy typical valuation metrics and expectations.
“It isn’t investing. It’s believing in something that may or may not come true. These stocks are taking place in what I call the year of magical thinking… The buyers are irrational believers in these companies, not from grief but from glee.”
Despite his reservations about the logic behind some of the buying, Cramer acknowledged he is no longer trying to dissuade people. He said that there is too much money being made, and he does not want to stand in the way of those capturing gains. Still, he emphasized that discipline matters. He advised that when traders find themselves sitting on a large profit, it is wise to take some money off the table. He argued that that is when discipline truly counts.
“Here’s the bottom line: Aside from the occasional pit stops like today, the PARC stocks just keep running, and until we see a wave of new IPOs creating a supply glut and a ton of insider selling, I wouldn’t be surprised if they continue to rally.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on July 21. 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 Recently Discussed These 8 Stocks
8. Circle Internet Group (NYSE:CRCL)
Number of Hedge Fund Holders: N/A
Circle Internet Group (NYSE:CRCL) is one of the stocks that Jim Cramer recently discussed. During the episode, Cramer said that he is “not particularly fond of” it. He commented:
“It can be any part of the PARCs… Circle Internet Group, the red-hot recent IPO that I’m not particularly fond of because it’s a stable coin play, and pretty soon, because of that GENIUS Act, I think it’ll be flooded with stable coins.”
Circle (NYSE:CRCL) operates a platform for stablecoin and blockchain-based applications, providing dollar-backed stablecoins and related tools for payments, liquidity, and developer integration across the digital financial system. Cramer mentioned the stock in a late June episode and said:
“Second group of winners, pretty much anything related to crypto. Now, some are linked to buying and selling crypto. Think Coinbase. Robinhood, the Circle Internet, that’s that newly public Stablecoin play, which came out of the IPO gate super hot. Let’s cool off… There are lots of smaller stocks that emulate these big dogs, and you see them trading all the time. You know what I mean? Meme.”
7. Strategy Incorporated (NASDAQ:MSTR)
Number of Hedge Fund Holders: 33
Strategy Incorporated (NASDAQ:MSTR) is one of the stocks that Jim Cramer recently discussed. Cramer mentioned the stock during the episode and said:
“It can be Oklo, it can be any part of the PARCs. It could be even Strategy, the old MicroStrategy, or any of the SPACs that are being created purely to buy crypto… These same people will buy… anything crypto, including SPACs that buy crypto. Why these? Well, maybe the better question is, well, why not? If you’re an individual investor, you don’t have much information about how stocks work longer term. It’s pretty easy to play this game, and it is a game.
We know there are parlays in gambling where you have to pick two or more events, and all have to be correct for you to win. The payouts can be big if your parlay hits, but if any bet loses, you lose the whole thing. These are pretty similar, except you tend to win all three. In many ways, gambling on PARC is a much fairer, better game, but it is a game nonetheless.”
Strategy (NASDAQ:MSTR) provides AI-driven analytics software that enables users to access insights easily, supported by consulting, education, and system assistance services. The company is also involved in bitcoin development.
