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.
6. QuantumScape Corporation (NYSE:QS)
Number of Hedge Fund Holders: 26
QuantumScape Corporation (NYSE:QS) is one of the stocks that Jim Cramer recently discussed. Cramer referred to it as a “back-from-the-dead” company, as he commented:
“Now you’ve got, oh hey, you’ve also got… the stocks that make better electric vehicles like the back-from-the-dead QuantumScape, which makes a new kind of battery that’s captured the fantasy of retail investors. Although that wasn’t enough to prevent the stock from plummeting over 14% today.
Although even with that decline, the stock’s almost tripled over the past month, as have many of these stocks. These same people will buy anything quantum… 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.”
QuantumScape Corporation (NYSE:QS) develops solid-state lithium-metal batteries designed to power electric vehicles and other uses, as the company aims to improve energy density, safety, and performance.
5. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: 23
Oklo Inc. (NYSE:OKLO) is one of the stocks that Jim Cramer recently discussed. During the episode, Cramer called it a “speculative stock.” He said:
“Now you’ve got, oh hey, you’ve also got the nuclear power stories like Oklo, which sold off hard today… I then talked about someone I met this weekend, get this, who bought Oklo, who truly did not know what the company did other than that, like something to do with nuclear, and it went up a lot.
True, Oklo’s involved with fission power. It can recycle waste as fuel. It might have a future. When the stock hit 30, I was adamant that people had to be careful with it, but then, when it went up another 10%, I threw in the towel. I said, hey, listen, it’s a speculative stock. If you want to own it, go ahead.”
Oklo (NYSE:OKLO) builds advanced fission power plants to deliver clean and reliable energy, and develops technology that turns nuclear waste into fuel for its reactors.
4. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 66
Coinbase Global, Inc. (NASDAQ:COIN) is one of the stocks that Jim Cramer recently discussed. Cramer noted that the company, as a part of “PARC,” an acronym he made for four hot stocks in the market, is pretty “darn profitable.”
“PARC exhausts me. I’m talking about my handy acronym for Palantir, AppLovin, Robinhood, and Coinbase. These are four of the many stocks that seem to have no quit in them, even if they all pulled back hard into the close today, giving us a rare moment to evaluate them on relative weakness. It’s better for me to talk about these stocks on a down day so you can get a discount if you were so inclined…
Now, even though I say PARC, these four stocks are just representatives of what’s been going on in this market. They’re actually the best of the lot. They have earnings. They have analysts following them who come up with estimates. Although judging by the way people have been buying these names, neither of them, those things like estimates and analysts, seems to matter at all…
While flying cars and experimental batteries don’t yet make money, PARC does, lots of it, oodles. Palantir, AppLovin and Robinhood, and Coinbase, they’re all pretty darn profitable. By comparison, during the dot-com era, most of these red-hot companies had little to no revenues and were actually running out of money, constantly tapping the public markets, at the same time that insiders were furiously [sell, sell, sell] their own stock because they knew there was no justification for these sky-high valuations. They got out.”
Coinbase Global, Inc. (NASDAQ:COIN) provides a platform that serves as a central financial account for crypto users. The company offers trading and liquidity services for institutions and on-chain development tools for developers. In a June episode, Cramer said that the company stock is going higher, as he remarked:
“Next, Coinbase. Alright, the cryptocurrency stocks, they just never want to quit. And this is a group that matters, even if older portfolio managers don’t care [and] look the other way. I think this one’s going higher, to who knows where.”
Since Cramer’s above comment, the stock is up around 10.3% at the time of writing.
3. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 76
Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the stocks that Jim Cramer recently discussed. Cramer considers it among the stocks that are “representatives of what’s been going on in this market.” He remarked:
“PARC exhausts me. I’m talking about my handy acronym for Palantir, AppLovin, Robinhood, and Coinbase. These are four of the many stocks that seem to have no quit in them, even if they all pulled back hard into the close today, giving us a rare moment to evaluate them on relative weakness. It’s better for me to talk about these stocks on a down day so you can get a discount if you were so inclined…
Now, even though I say PARC, these four stocks are just representatives of what’s been going on in this market. They’re actually the best of the lot. They have earnings. They have analysts following them who come up with estimates. Although judging by the way people have been buying these names, neither of them, those things like estimates and analysts, seems to matter at all…
While flying cars and experimental batteries don’t yet make money, PARC does, lots of it, oodles. Palantir, AppLovin and Robinhood, and Coinbase, they’re all pretty darn profitable. By comparison, during the dot-com era, most of these red-hot companies had little to no revenues and were actually running out of money, constantly tapping the public markets, at the same time that insiders were furiously [sell, sell, sell] their own stock because they knew there was no justification for these sky-high valuations. They got out.”
Robinhood (NASDAQ:HOOD) provides a financial platform that enables users to trade a wide range of assets, access investing tools, and use features like fractional trading, retirement plans, and crypto wallets. Additionally, the company offers educational resources, newsfeeds, and a digital currency marketplace. During the July 8 episode, Cramer noted that he has been a “big believer in Robinhood” for a long time, as he commented:
“Yeah, look, it’s become kind of a meme stock, but you know… We like Vlad, we’ve liked him ever since he was a kid. And I’ve been a big, big believer in Robinhood for a very long time. I’m not changing my view.”
2. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 96
AppLovin Corporation (NASDAQ:APP) is one of the stocks that Jim Cramer recently discussed. Cramer noted that the stock is one of “the best of the lot,” as he commented:
“PARC exhausts me. I’m talking about my handy acronym for Palantir, AppLovin, Robinhood, and Coinbase. These are four of the many stocks that seem to have no quit in them, even if they all pulled back hard into the close today, giving us a rare moment to evaluate them on relative weakness. It’s better for me to talk about these stocks on a down day so you can get a discount if you were so inclined…
Now, even though I say PARC, these four stocks are just representatives of what’s been going on in this market. They’re actually the best of the lot. They have earnings. They have analysts following them who come up with estimates. Although judging by the way people have been buying these names, neither of them, those things like estimates and analysts, seems to matter at all…
While flying cars and experimental batteries don’t yet make money, PARC does, lots of it, oodles. Palantir, AppLovin and Robinhood, and Coinbase, they’re all pretty darn profitable. By comparison, during the dot-com era, most of these red-hot companies had little to no revenues and were actually running out of money, constantly tapping the public markets, at the same time that insiders were furiously [sell, sell, sell] their own stock because they knew there was no justification for these sky-high valuations. They got out.”
AppLovin Corporation (NASDAQ:APP) develops a software platform that helps advertisers optimize marketing, app monetization, and user acquisition through real-time bidding, analytics, and connected TV tools. The company also provides app management solutions and operates free-to-play mobile games. During an early June episode, Cramer cited future competition worries around the company. He said:
“Okay, the only thing I worry about is that I think another company can come in and challenge AppLovin… and if that happened, then I think you’d be in trouble because I don’t think it’s as nearly as proprietary as other people think. I know many companies that are gunning for them right now, and I want to be a little bit careful about that, but they’re a very, very good company. Very good.”
1. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks that Jim Cramer recently discussed. Cramer discussed the stock as part of his PARC group. He commented
“PARC exhausts me. I’m talking about my handy acronym for Palantir, AppLovin, Robinhood, and Coinbase. These are four of the many stocks that seem to have no quit in them, even if they all pulled back hard into the close today, giving us a rare moment to evaluate them on relative weakness. It’s better for me to talk about these stocks on a down day so you can get a discount if you were so inclined…
Now, even though I say PARC, these four stocks are just representatives of what’s been going on in this market. They’re actually the best of the lot. They have earnings. They have analysts following them who come up with estimates. Although judging by the way people have been buying these names, neither of them, those things like estimates and analysts, seems to matter at all…
While flying cars and experimental batteries don’t yet make money, PARC does, lots of it, oodles. Palantir, AppLovin and Robinhood, and Coinbase, they’re all pretty darn profitable. By comparison, during the dot-com era, most of these red-hot companies had little to no revenues and were actually running out of money, constantly tapping the public markets, at the same time that insiders were furiously [sell, sell, sell] their own stock because they knew there was no justification for these sky-high valuations. They got out.”
Palantir (NASDAQ:PLTR) creates software that helps users analyze complex data to uncover patterns and support operational decisions. The company’s platforms also enable seamless data integration, AI model deployment, and real-time software updates.
While we acknowledge the potential of Palantir Technologies Inc. (NASDAQ:PLTR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
Hedge Fund Resource Center