We recently published a list of Jim Cramer’s Thoughts on These 13 Stocks. In this article, we are going to take a look at where Snap Inc. (NYSE:SNAP) stands against other stocks that Jim Cramer discussed.
On Thursday’s episode of Mad Money, Jim Cramer voiced his exasperation over the skepticism surrounding AI infrastructure as he stated that it was never backed by solid evidence to begin with. He expressed frustration that so many investors had been misled into believing that the AI infrastructure boom had somehow stalled.
“Earnings season, it’s a pain in the neck. It’s convoluted stuff coming at you from all different directions. Loss of sleep, just a total time suck and I love it. I love it because it clears things up. The false narratives are exposed. You can go back to playing offense, not defense. And few false narratives have gone as far as this story about the end of data center spending.”
READ ALSO: 8 Stocks on Jim Cramer’s Radar Recently and Jim Cramer Listed 20 Best Performing Stocks of the Last 20 Years
According to Cramer, the story took root back on January 27th, “DeepSeek Monday,” when a Chinese company said that they developed a generative AI model requiring significantly fewer computing resources than industry leaders. He added:
“All the previously red-hot AI infrastructure stocks were immediately crushed. You know what? They never really recovered.”
Cramer questioned how the doubt could have been spread so easily. He pointed to the media’s role and wondered whether reporters asked the right questions or enough questions at all. He criticized the consistent spotlight given to bearish voices, many of whom had clear financial motives. As per Cramer, some of these commentators failed to disclose that they had short positions across the AI sector. He accused them of putting profits ahead of facts as he noted that too much money was at stake for them to let reality interfere with their narrative. He added:
“I know it may be hard to believe that huge companies with tens of billions of dollars to spend actually keep funneling that money to the data center suppliers… but that’s exactly what’s happening, and I think it’s not too late to own a lot of the members of the complex. Even as I expect that if we wait a few days, the bears will be out again… They just can’t stop trying to make money at your expense.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on April 30 and May 1. 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).
Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 44
A caller asked if it was a good idea to buy Snap Inc. (NYSE:SNAP) at the low price the stock is trading at and Cramer replied:
“No, it’s at a low price because it’s doing quite poorly. I’m not stating the obvious, I’m just saying that, normally, if there was something it was doing really well, it was down here, I would say absolutely yes. But I’ve not seen any sign that these guys really have a sense of urgency, so therefore I’m going to say no. I don’t think it represents value.”
Snap (NYSE:SNAP) provides Snapchat, a visual messaging platform. The company also offers Snapchat+, Spectacles, and advertising tools that include augmented reality and image or video-based formats. In March, Cramer suggested that the company might benefit from a new CEO as he said:
“They did too much stock-based compensation. They didn’t get the balance sheet right… I mean, there’s a possibility they make some money. I got an idea for them, new CEO. By the way, there’s no crime in that. You just swallow your pride and you just say, hey, you know what, I’m gonna let someone else do it.”
Overall, SNAP ranks 7th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of SNAP 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 SNAP but that trades at less than 5 times its earnings, 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. This article is originally published at Insider Monkey.
