On Wednesday’s episode of Mad Money, host Jim Cramer offered a pointed review of the day’s market activity and turned his attention to the ongoing tension between Federal Reserve Chair Jerome Powell and President Donald Trump.
“Why hasn’t Powell started cutting rates again? We had a cooler-than-expected PPI number today. That could make it easy to justify a rate cut, right? But how about inflation? The incredibly important Consumer Price Index from yesterday had some prices that had some signs of inflation from the president’s tariffs… However, we don’t know how high the tariffs are going to go, and he seems to roll out new ones every day.”
READ ALSO: Jim Cramer Weighed In on These 16 Stocks and 17 Stocks on Jim Cramer’s Radar.
In Cramer’s view, Powell is simply exercising caution and is waiting to see the full impact of these trade moves. Cramer said, “If you believe the economy’s about to fall apart, then there’s no time to wait.” However, he noted that over the past few days, major banks have reported earnings, and not one of them signaled any sign that the American consumer is in distress. With unemployment still hovering at 4.1%, Cramer argued that it is difficult to make the case for an economic slowdown.
He said that it is the main problem with President Trump’s position. Cramer explained that the Federal Reserve is designed to cut rates in response to a slowdown, but right now, the economy does not show the typical signs of one. He noted that instead, the only potential drag appears to be the uncertainty created by Trump’s own tariff strategy.
“Bottom line: I hope today is the last day that Trump goes after Jay Powell, whose term ends in 10 months anyway. Gunning for Powell only hurt Trump the same way it hurts the markets, and I don’t think the president’s a masochist. At the end of the day, we’re either going to see more inflation or not. If inflation really does pick up, firing Powell won’t matter because the rest of the Federal Market Committee won’t let him cut either. Mr. President, sometimes, this is genius by me, it’s better to leave well enough alone.”
Our Methodology
For this article, we compiled a list of 17 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on July 16. 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 Reflected on These 17 Stocks
17. FLEX LNG Ltd. (NYSE:FLNG)
Number of Hedge Fund Holders: 9
FLEX LNG Ltd. (NYSE:FLNG) is one of the stocks Jim Cramer reflected on. When a caller inquired about the stock while mentioning its huge dividend, Cramer replied:
“Yeah, I’ve been trying to figure out why that has such a big dividend. Let me go to work on that for you, rather than just say, well, I think that dividend’s safe. We gotta find out. When you see a dividend that high versus the rest of the market, there might be something wrong. We’re going to get on it.”
FLEX LNG (NYSE:FLNG) is engaged in the seaborne transportation of liquefied natural gas, operating a fleet of LNG carriers equipped with advanced propulsion technologies. During an April episode, when a caller asked about the stock, Cramer said that he has to take a “hard pass.”
“But don’t you think that it should have already made it by now? I mean the stock just does nothing, nothing but go down during the greatest revolution of all time. I’m going to have to take a hard pass on that one. I’m sorry.”
16. CleanSpark, Inc. (NASDAQ:CLSK)
Number of Hedge Fund Holders: 23
CleanSpark, Inc. (NASDAQ:CLSK) is one of the stocks Jim Cramer reflected on. When a caller inquired about the stock, Cramer made a positive comment about it but noted that it is still speculative. He said:
“Okay, alright, CleanSpark is another one of these stocks that, I mean, frankly, I didn’t even know JPMorgan followed that one. I’m not so sure they do. It’s another one of those stocks that one headline is going to roll. So, I now say it’s okay to have a speculative, look, you can speculate with it as long as you understand that it’s speculation and nothing more.”
CleanSpark (NASDAQ:CLSK) operates as a bitcoin mining company and owns data centers that support the Bitcoin network. The company reached its mid-year goal of 50 EH/s in operational hashrate in June 2025, becoming the first Bitcoin miner to achieve this through fully self-operated infrastructure. The milestone reflects a 9.6% monthly increase and improved energy efficiency. The company’s CEO commented:
“I want to express my gratitude to our team, especially our COO Scott Garrison and CTO Taylor Monnig, for their grit and leadership. Under their direction, the tireless efforts of our operations and technology teams resulted in the addition of over 10 EH/s of capacity across four states to achieve the ambitious target. With the talent, infrastructure and power contracts in place, CleanSpark is well-positioned to continue scaling.”
15. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 69
Bristol-Myers Squibb Company (NYSE:BMY) is one of the stocks Jim Cramer reflected on. When asked about the stock during the lightning round, Cramer replied that he is holding out hope for the company’s “central nervous system drug.”
“Bristol Myers, never seen it this cheap. We’re holding it. I did have high hopes for their, what, what I would say is their central nervous system drug. It better work. If it doesn’t work, we’re going to get rid of it, and it will be a disappointment, and it will be a shame.”
Bristol-Myers (NYSE:BMY) develops and markets biopharmaceutical products targeting cancer, cardiovascular conditions, immune disorders, and neurological diseases. The company’s portfolio includes Eliquis, Opdivo, Revlimid, and other treatments for serious and chronic illnesses. During a June episode, Cramer showed disappointment in the stock, as he commented:
“Bristol Myers, Charitable Trust owns it. So far, we’re not happy with COBENFY. It’s a little disappointing. We need to see that stock back up at 60.”
14. D-Wave Quantum Inc. (NYSE:QBTS)
Number of Hedge Fund Holders: 13
D-Wave Quantum Inc. (NYSE:QBTS) is one of the stocks Jim Cramer reflected on. When a lightning round caller inquired about the stock, Cramer responded:
“I want you to own this D-Wave. Here’s why I want D-Wave because one headline, one little story, and that stock goes up 10 points. I mean, I’m looking at stuff that is going up 10 points on nothing, and D-Wave has the ability to be able to do that because it’s actually a real company.”
D-Wave (NYSE:QBTS) develops quantum computing systems, software, and cloud services. The company provides hybrid quantum-classical solutions for complex problems in logistics, scheduling, optimization, drug discovery, and more across enterprise applications. During a May episode, Cramer mentioned the company and shared his bullish sentiment:
“Alright, I’m going to tell you something good. I think of the ones that are out there, this is the best, okay? How’s that? This is the best. And if they got any good news beyond what they have, the stock probably goes to 25. There we go.”
13. New Gold Inc. (NYSE:NGD)
Number of Hedge Fund Holders: 28
New Gold Inc. (NYSE:NGD) is one of the stocks Jim Cramer reflected on. During the lightning round, a caller inquired about the stock, and Cramer replied:
“It’s okay. I mean, why not buy Agnico Eagle? That’s the one I really, really like. They’re doing so well. Let’s go with that, Agnico.”
New Gold (NYSE:NGD) is a mining company focused on the exploration, development, and operation of mineral properties, primarily producing gold, silver, and copper from its key assets in Ontario and British Columbia.
The company recently announced its Q2 earnings result date, which is set on July 28. During the last quarter earnings, New Gold’s (NYSE:NGD) President and CEO, Patrick Godin, noted a strong start to the year, highlighting the company’s full ownership of New Afton, successful refinancing of senior notes, and extension of its credit facility. Two updated Technical Reports were also released, which showed improved production outlooks and reduced costs. The CEO added:
“Operationally, we delivered our first quarter as planned, advancing several critical path objectives to set ourselves up to achieve our annual guidance. At New Afton, B3 grades were higher than expected as the cave nears exhaustion, which is now expected by the end of the second quarter of 2025. At Rainy River, our efforts to sequence waste stripping in the early months of the year have allowed us to remain on-track for a step-up in production starting in the second quarter, and to deliver an improved second half of the year. Additionally, underground development continues to advance, and I’m pleased to report the successful pit portal breakthrough occurred in early April, an important catalyst that enables the underground ramp-up to advance throughout the year.”
12. The Wendy’s Company (NASDAQ:WEN)
Number of Hedge Fund Holders: 31
The Wendy’s Company (NASDAQ:WEN) is one of the stocks Jim Cramer reflected on. When a caller asked about the stock, Cramer showed a bearish sentiment as he said:
“Look, other than the fact that my wife loves Wendy’s so much, it’s just ridiculous, I’m not liking the stock. I mean, you know, they cut the dividend already. The dividend now is 5%. There’s something very wrong at Wendy’s, and the answer is you do not want to touch it. That happens to be a very tough industry, the burger industry. You want to stay away from Wendy’s.”
Wendy’s (NASDAQ:WEN) operates, develops, and franchises quick-service restaurants specializing in hamburger sandwiches, while also owning and leasing real estate properties. While mentioning the company and its stock during the July 9 episode of Mad Money, Cramer said that “it’s not very comforting.” He commented:
“There are major corporate events that are being completely ignored. Classic example, the big, Wednesday shake up the other day. We came in yesterday and we saw that CEO Kirk Tanner’s leaving his job at Wendy’s, headed to Hershey. The news broke at the same time that Trump was unleashing his next volley of tariffs. Tanner leaving Wendy’s is one of the most significant moves I’ve seen lately in corporate America, yet people didn’t even bother to look at it. Big mistake.
First, it called to light how troubled Wendy’s might be. We know that they cut the dividend not that long ago, 44% slice, 25 cents down to 14 cents. Lots of people had been buying the stock because of its large dividend. Now, with Tanner out all of a sudden, we have a company with almost $2.8 billion in debt and only $2.2 billion in market capitalization. In the uber-competitive fast food market, we have to wonder what the heck is going on. But I’ll tell you, it’s not very comforting.”
11. Papa John’s International, Inc. (NASDAQ:PZZA)
Number of Hedge Fund Holders: 20
Papa John’s International, Inc. (NASDAQ:PZZA) is one of the stocks Jim Cramer reflected on. A caller inquired about the stock during the episode, and Cramer responded:
“Okay, I’m into fitness, ‘fitness’ pizza in my mouth. I love Papa John’s. It’s fantastic. And I think that, you know, look, here’s the thing, the only problem with Papa John’s is that they changed the management. The really great guy went… from Papa John’s… went to Shake Shack, and you got Todd Penegor there, and Todd, he is a really good guy, but he was at Wendy’s before and I have watched what Shake Shack has done since, and I think that Shake Shack got the better end of the deal. It’s been really fabulous since Rob Lynch moved over there. So I’m going to have to say we have to wait and see. I like the pizza though very much, but I need to see how Todd does there. He’s new.”
Papa John’s. (NASDAQ:PZZA) operates and franchises pizza delivery, carryout, and dine-in restaurants under the Papa John’s brand, and provides pizzas and related food and beverage items. The company also supplies ingredients, packaging, and other products to its restaurants.
10. The Cheesecake Factory Incorporated (NASDAQ:CAKE)
Number of Hedge Fund Holders: 23
The Cheesecake Factory Incorporated (NASDAQ:CAKE) is one of the stocks Jim Cramer reflected on. Cramer discussed the company stock in detail during the episode, as he commented:
“I got another one for you, just kind of popped outta nowhere on my screen, Cheesecake Factory. Yeah, it’s up over 31% year to date, trouncing the 6.5% gain in the S&P 500 over the same period, Cheesecake Factory. So once again, I’m asking what the heck is going on here… It’s infamous for one thing, its ridiculously large menu…
…Basically, Cheesecake Factory covers all the bases, making it a good choice when you’re looking to go out with a group of friends… As analyst at Goldman Sachs put it, this diverse menu eliminates the ‘no vote’ when deciding where to go out to eat… The value proposition here is clear. If there’s one thing the winners in the restaurant space have in common right now, is that they offer a great value proposition…And look, even if you’re not a fan, it’s hard to argue with Cheesecake Factory’s annualized unit volume of $12.5 million, and that’s what they make per share, and it’s an obscenely large number for the restaurant industry…
Cheesecake Factory’s also changed the menu to offer their customers better value, something that they’re planning to stick with going forward. The result, when Cheesecake Factory reported its most recent quarter, at the beginning of May, they delivered impressive unit-level margins of 16.6%. Wall Street was only looking for 15.8%… Adding new locations will be meaningful to the overall earnings. This comes out to 7% unit growth overall, which is enough to make this a pretty compelling restaurant growth story.
So I like the company, but where do I come down on the stock right now? This thing has been red hot. Although, with Cheesecake Factory set to report earnings the Tuesday after next, it might be wise just to wait and see the latest results. While performance has been strong, management remains conservative in its outlook, so the stock might sell off even if they have a real good quarter. Despite having a top and bottom line beat and these impressive margins when they last reported, the stock slipped the day after earnings, thanks to management’s commentary…
So let me give you the bottom line on Cheesecake: Even though management’s been pretty conservative in their outlook throughout this rally, I don’t know if it would be prudent for me to tell you to buy Cheesecake Factory ahead of the quarter… There’s a lot to like about this story, but let’s see how they did… last quarter. As much as I want to say, let them eat cake, maybe let this one cool off before you take a bite.”
Cheesecake Factory (NASDAQ:CAKE) operates and licenses restaurant brands and manages bakery production for both internal use and external distribution. The company also supplies baked goods and cheesecakes to restaurants, retailers, and foodservice operators.
9. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 68
Morgan Stanley (NYSE:MS) is one of the stocks Jim Cramer reflected on. During the episode, Cramer noted that while the firm posted very good numbers, its earnings were overshadowed by Goldman’s stronger performance.
“Morgan Stanley, a healthy top and bottom line beat. All three of the divisions, institutional securities, wealth management, and investment management, beat expectations. And by the way, the wealth and investment management business here is on fire. They continue to see big inflows. They now have $8.2 trillion in combined total client assets. Sticky, fantastic business. Overall, very solid set of numbers from Morgan Stanley. Well, why didn’t it roar? Well, I think the company’s actually hurt by the fact it reported the same day as Goldman Sachs.
Goldman had a stronger performance than everybody in investment, banking, sales, and trading… Yet even Goldman couldn’t rally all that much today, so it’s no surprise that Wall Street shrugged at Morgan Stanley’s report and the stock pulled back 1.27%. That’s not a lot at all. Again, nothing wrong here, it just looked… less enticing right now than Goldman’s numbers.”
Morgan Stanley (NYSE:MS) delivers financial services, including capital markets advisory, trading, wealth and investment management, lending, and research.
8. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 77
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the stocks Jim Cramer reflected on. Cramer noted that the firm “may have had the best quarter ever.” He said:
“The single best report of the big banks came from Goldman Sachs, another Charitable Trust holding… really bailed me out on this one… They changed the… CEO of this today… Goldman blew away the numbers. I think they may have had the best quarter ever…
Big story though, right now, is the return of M&A as M&A advisory revenue grew a staggering 71% year over year, 48% just versus the previous quarter… In the end, the stock rallied more than six bucks today. I think it’s going to be up much, much more. You know why? Because it is just the cheapest when it comes to EPS…
…The craziest thing is that Goldman, a fabulous firm, trades at a big discount to the average stock in the S&P 500 because its earnings used to be so episodic… This quarter showed how the company’s become much more of a well-oiled machine where you’re going to get a number that doesn’t swing wildly good, bad, or indifferent. I think this is the beginning of when the stock gets reevaluated upward and the multiple has a giant upward revision, and that’s going to propel the stock much higher….
When I saw Goldman down six, I said if someone wanted to buy a hundred shares, buy 25 now, buy 25 a little bit lower, and then buy 50. That’s called pyramid style buying, gradually getting… bigger as it goes down… When a stock starts to go lower, it will often keep going lower until all the people who don’t know anything are done selling, and you get a terrific price from their ignorance. We saw that with Goldman today, as the stock eventually rebounded and finished the session up more than six bucks. This was their best trading quarter in history, and it’s a great trading firm, very strong wealth management, beginning of a turn in M&A and IPOs. That’s really all you can ask for from Goldman, and it’s the stuff that’s going to make the stock a much higher multiple stock, and I like that.”
Goldman Sachs (NYSE:GS) provides financial services including investment banking, trading, asset and wealth management, private equity, and credit solutions. The firm serves corporations, institutions, governments, and individuals across global markets.
7. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 117
Bank of America Corporation (NYSE:BAC) is one of the stocks Jim Cramer reflected on. While discussing the firm’s earnings report, Cramer noted that it posted the weakest earnings among the major banks.
“Bank of America reported a good quarter, but it was the weakest of the four majors. While the bank managed a bottom-line beat, it was the only one of the four that missed on the top line, thanks to a nasty net interest income miss. But it wasn’t that big a miss. That said, Bank of America managed to maintain its full-year net interest income forecast, which helped blunt the impact of the miss, and why the stock didn’t get hit that much. I was a tad disappointed with BofA’s markets and banking segments, both of which fell short of expectations. In a quarter with so much volatility, their sales and trading business should have been printing money, but it didn’t happen. The company shares had already declined nearly 2% yesterday, fell a little bit more today. I don’t know, I can’t get excited about it, I guess.”
Bank of America (NYSE:BAC) provides financial services, including consumer banking, credit, investment management, lending, treasury solutions, and trading across multiple asset classes.
6. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 96
Citigroup Inc. (NYSE:C) is one of the stocks Jim Cramer reflected on. Coming to the company, Cramer stated:
“Tuesday morning, we heard from… Citigroup. This ended up being the best-received bank quarter of the day, with the stock jumping 3.7% and hitting a 16-year high before pulling back a bit today. Not only did Citi report a big top and bottom line beat, their net interest income was much, much higher than expected, more than a billion dollars above the consensus estimates. I don’t know why the estimates haven’t caught up yet to what’s going on with this bank. That’s the real issue about why it keeps surprising.
All five of Citi’s segments grew in the quarter, with the best growth coming from the wealth management business, up 20%, their investment banking business up 18% and their market business up 16%. I gotta hand it to it. Even better, management says they’ve made significant progress on their turnaround efforts, and higher costs from the turnaround should start to come down next year. That’s a big reason the stock caught fire. CEO Jane Fraser’s turn is working, and as long as the bank keeps avoiding big setbacks, doesn’t get injured, I bet the stock can keep climbing. After all, Citi’s still the cheapest in the group by a pretty wide margin. It’s got a lot more to run…”
Citigroup Inc. (NYSE:C) delivers financial products and services, including investment banking, trading, treasury solutions, retail banking, credit cards, and wealth management.
5. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 88
Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer reflected on. Cramer noted that his trust upgraded the stock, as he said:
“Wells Fargo reported the next one, and this one really ruined my day because we own it for the Charitable Trust, and Wall Street hated the results, even though the sales and earnings were better than expected. Some of that was from lower provisions for credit losses, offsetting the bank softer than softer-than-anticipated net interest income. Wells even cut its full year forecast for net interest income, caused people to dump the stock in droves, and me to hit the linoleum floor…
Now, on the company’s earnings call, management tried to explain this change was intentional. Now that Wells Fargo is no longer limited by the punitive asset cap, they’re prioritizing their institutional business. Think sales and trading. So whatever they lose in net interest income, they expect to make up in fees. Still, the change clearly caught everybody off guard, and I didn’t think they really explained it that well. Hence why the stock dropped more than 5% yesterday.
Still, I’m sticking with Wells Fargo for the Charitable Trust…
In fact, after yesterday’s pullback back, the trust upgraded Wells. We had it as a two. We took it up to a one, meaning, we think the stock could be bought right now. Ultimately, I trust Wells Fargo’s CEO, Charlie Scharf, who’s really good. I think he can get the bank back on track. It was never really off track, but you know what, it had that asset cap, it went away, and now I think they got so many things going, it wasn’t communicated well. They need an analyst meeting. With the asset cap gone, Wells has a bright future. It’s just, they have, I call it a messaging problem.”
Wells Fargo (NYSE:WFC) provides a wide range of financial services, including banking, lending, investment, and wealth management.
4. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 129
JPMorgan Chase & Co. (NYSE:JPM) is one of the stocks Jim Cramer reflected on. While discussing bank earnings, Cramer mentioned the stock first and commented:
“JPMorgan, the biggest bank on earth, hey, by the way, three times bigger than the next, I mean that’s kind of crazy, isn’t it, reported on Tuesday morning, delivering a clean top and bottom line beat, loan and loss provisions were lower than expected, although their net interest income came in a tad light. CEO Jamie Dimon proclaimed that, ‘Each of the lines of business performed well.’ Though technically the two largest segments, consumer and community banking, and the commercial and investment… beat expectations handily, while the smaller asset and wealth management business was basically in line with expectations. Nothing wrong with that.
At the same time, JPMorgan raised its full-year net interest income forecast by $1 billion. Also raised its expense guidance by $500 million… Jamie Dimon had good things to say about the US economy taking up the big beautiful budget bill, but also throwing some cold water… citing risks from tariffs, trade uncertainty, and the budget deficit, fed independence.
What else? JPMorgan just announced a $50 billion buyback last month after the stress test results were released, and they could do more, but would rather not if the stock gets too high… Yeah, look, the shares dropped two bucks yesterday, but there was nothing really wrong here at all. It was another good, solid quarter from the industry leader, JPMorgan.”
JPMorgan (NYSE:JPM) provides financial services, including banking, lending, payments, investment banking, asset management, and wealth management. The firm serves individuals, businesses, institutions, and governments through physical branches, digital platforms, and advisory services.
3. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 65
Verizon Communications Inc. (NYSE:VZ) is one of the stocks Jim Cramer reflected on. When a caller inquired about the stock, keeping its 7% dividend in view, Cramer replied:
“I think it’s okay. It’s really just a bond. I mean, there’s a lot of competition now in the telco business.”
Verizon (NYSE:VZ) provides communications, technology, and entertainment services, with solutions including wireless and wireline connectivity, broadband, and related devices. The company serves consumers, businesses, and government clients with mobile, fiber, IoT, and network solutions. During a May episode, Cramer remarked that the company was not as bad as before, as he said:
“No, that’s fine… The dividend, 6% is good. They’re doing better… I gotta put it like this way, Verizon, not as bad as it used to be. I mean that’s not enough for me, but that’s kind of enough for them. Hey, we’re not so bad, that’s a good slogan for them. Hey Verizon, we’re not so bad. I like that.”
2. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 96
Micron Technology, Inc. (NASDAQ:MU) is one of the stocks Jim Cramer reflected on. A caller inquired about the stock and its sudden decline. Cramer responded:
“I gotta tell you, I look at it every day… Do you know, I said… What’s with Micron three times today? I think that run from $70 to $130 really got people spooked. I don’t know. Now everyone’s talking about how the chart’s bad. I’m with you. I think the stock is inexpensive, but you know what? The chart is saying, we gotta wait. I’m going to obey the chart. I just am, I’m going to obey the chart. And anyway, I like NVIDIA.”
Micron (NASDAQ:MU) develops and sells memory and storage products, including DRAM and flash-based solutions, under various brands and channels. Its technologies serve markets such as data centers, PCs, mobile devices, automotive, and industrial applications. In a June episode, Cramer said that he likes the stock at $120. He commented:
“Alright, well, this is not unusual for Micron. I’ve seen this happen many times at Micron. This stock went literally from $60 to $126, and they did a fantastic quarter. But there’s no way that a stock that goes from $60 to $126 can go higher, no matter how good it is. This is a momentary pullback, and then you’re going to have to start buying the stock all over again. I like the stock at $120.”
1. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 23
Sony Group Corporation (NYSE:SONY) is one of the stocks Jim Cramer reflected on. During the episode, a caller inquired about the stock in light of the tariffs, and Cramer replied:
“I don’t want to be there. I don’t want to be there because I think Japan’s going to get the brunt. Too many soldiers there. We’ve done too much for them. I think that Japan and Korea, the next wave, is what, I think that Jay Powell’s worried about too.”
Sony (NYSE:SONY) develops and sells electronics, gaming consoles, software, and digital content, and provides network services across gaming, video, and music. Additionally, the company also produces music, films, TV content, and provides broadband, imaging, storage, and financial services. Aristotle Capital Management, LLC stated the following regarding Sony Group Corporation (NYSE:SONY) in its Q1 2025 investor letter:
“Sony Group Corporation (NYSE:SONY), the global leader in video games, image sensors, music and movies, was the top contributor for the period. The company delivered strong quarterly results, driven primarily by its gaming and music businesses, and announced a new executive leadership structure. In gaming, Sony reported a record-high 129 million monthly active users, a 20% year-over year increase in PlayStation Plus revenue and an expanding user base, as 40% of new PS5 console buyers were new to the platform. The Music segment also continued to benefit from global streaming tailwinds, delivering double-digit profit growth. In a significant leadership transition, Sony announced that, effective April 1, 2025, Hiroki Totoki, currently COO and CFO, would succeed Kenichiro Yoshida as CEO. Our original investment in Sony was grounded in the strategic transformation led by Yoshida-san, where Totoki-san was an instrumental partner in driving Sony’s pivot away from commoditized businesses while spearheading investments in content IP and semiconductors. Looking ahead, we continue to see opportunity for Sony to capitalize on its unique position as both a content creator and platform owner. The company’s ability to integrate gaming, music, anime and film and leverage IP across platforms (e.g., Crunchyroll and its recent partnership with Kadokawa) should position it well for long-term value creation.”
While we acknowledge the potential of Sony Group Corporation (NYSE:SONY) 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 SONY 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.
