During the latest episode of Mad Money, which aired on the 1st of May, Jim Cramer dove straight into the recent tech earnings reports and celebrated the fact that some of the biggest names reported great earnings, saying:
“Sometimes you forget why you ever like something in the first place. Take the super stocks, the hyperscalers, the tech titans, I don’t care, whatever you want to call them. These stocks all got lumped together because of their size, their gigantic market caps that dwarf the rest of the market and then they lost their juice. […] We’re reminded of how the mega caps got so big to begin with. It’s their scale, their smarts, their moats, their balance sheets, and their sensational products.”
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He then emphasized how quickly the market turned around on the back of those great earnings reports:
“Couple weeks ago, the formerly magnificent seven felt impossible to own. But days like today remind you why you avoid these stocks at your own pearl. You got to have a couple of them. These companies are endowed with tens of billions of dollars. They’re like nation states. They don’t flinch at spending tens of billions to compete in artificial intelligence. They have the flexibility to pivot to what’s necessary. […] They’re run by seasoned hands who are incorruptible and bold and can course correct if they missed the mark the previous quarter. They are marvellous gems.”
Voicing his support for the big American tech companies, he said:
“This is why I take every chance to harangue public officials and urge them to stand up for these companies which because of their size have become honeypots for lawsuits by foreign governments who never stop hitting them up for money. But in the end, their optionality knows no bounds. Save tariffs. Something that they could not have seen coming and snuck up on them very fast. Snuck up on everyone. This has been the roughest stretch for these amazing companies that I can recall. “
Finally, he gave his nod of approval to these resilient companies, before beginning to analyze their recent earnings reports:
“But the bottom line, if we’re in for lean times, you know what? It’s quarters like these that remind me that these mega caps were built to prosper, built to make money in any kind of market, and they’re truly ready to excel when things turn south for everybody else, including Apples.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 1. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock 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).
8. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Jim Cramer reviewed the strong earnings from mega-cap tech stocks, and started off by praising Microsoft Corporation (NASDAQ:MSFT) for delivering what he called a “thing of beauty.” He highlighted the company’s impressive quarter, especially the performance of Azure and the long-awaited upside guidance from CFO Amy Hood, which had been lacking in previous reports. Here’s what he said:
“[Talking about the market’s gains] Led by two of these mega caps, the Microsoft and Meta platforms, we’re reminded of how the mega caps got so big to begin with. It’s their scale, their smarts, their moats, their balance sheets, and their sensational products. Microsoft stock finished up 30 points or 7.63% today after a monster quarter […]
Microsoft’s a machine. It’s a conference call that’s incredibly well orchestrated. CEO Satya Nadella starts with a mellifluous analysis of what’s going great guns. He takes it from 30,000 ft all perfect every division including most proudly Azure.
Then CFO Amy Hood, perhaps the most professional of the CFOs in the business, gives the breakdown of the far more prosaic numbers, how much each division gained over the previous year. Then she delivers the single most important bullet in the call: the part where she raises guidance, sometimes huge, sometimes just big.
[Talking about previously reducing guidance in previous quarters] Not this time. This time, it was a glorious course of raised numbers. Azure, it had huge accelerated revenue growth and will continue to do so. […] This quarter was a thing of beauty.”
Here’s what Mar Vista’s U.S. Quality Select Strategy Fund said about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2025 investor letter:
“Microsoft (MSFT) reported strong bookings, highlighted by an accelerating remaining performance obligation of nearly $300 billion, representing 36% year-over-year growth, as well as healthy cloud revenue growth of 21% year-over-year. Despite this solid performance, MSFT stock came under pressure as Azure revenue growth, at 31% year-over-year, came in at the low end of expectations. Additionally, guidance for the March quarter forecasted Azure revenue growth of 31% to 32%, reflecting a slowdown in non-AIrelated Azure growth.”
7. Meta Platforms Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Jim Cramer considered Meta Platforms Inc. (NASDAQ:META) the standout among big tech earnings, even outperforming Microsoft in his view. He was particularly impressed with Meta’s strength in digital advertising, WhatsApp monetization potential, and the overall momentum of the business. Here’s what he said:
“[Talking about the market’s gains] Led by two of these mega caps, the Microsoft and Meta platforms, we’re reminded of how the mega caps got so big to begin with. It’s their scale, their smarts, their moats, their balance sheets, and their sensational products. […] Meta Platforms jumped $23, 4.23%. Spectacular gains, tremendous outlooks, tremendous! […]
As good as Microsoft was, believe it or not, I thought Meta was better. Mark Zuckerberg has cracked the code in terms of trying to make digital advertising work for anyone, any company. […] He’s so confident when I heard that I wanted to start a new business just to see if it worked.
Even better, I could see where any company that advertises on television would be best off just giving a huge chunk of those ad dollars to Meta, not linear TV because it’s true. The performance is clearly better. […] because spending patterns and brand loyalty start with the teens.
A teen lead can be worth 10 times the lead of an older person. If you want to reach teens, you got to go to Zuckerberg. You got to go to Meta. So, if you’re a big consumer package goods company, you can simply give all your money to Meta, fire most your internal ad people, drop your expensive ad agency, and save yourself a fortune. […]
It was just incredible. Not only that, but Zuckerberg talked about monetizing the asset that’s potentially the best thing Meta owns. WhatsApp! More than three billion people use this as a principal communications platform and it costs nothing. That could change, and it could give the company a gigantic new revenue stream. This was an all systems go quarter.”
Here’s what Nightview Capital said about Meta Platforms Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta’s platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.
Thriving Core Platforms: In Q3, we saw Meta achieve a 23% YoY revenue growth,—a testament to strong user engagement across its ecosystem. The advertising landscape as a whole continues to evolve and we believe Meta’s existing platforms offer a defined advantage in this new world. Existing platforms in the age of AI continue to be the most powerful indicator of future success in our opinion.
AI Leadership: Meta’s AI capabilities and the Llama AI model are driving efficiency and product innovation. In our view, these assets have been under-appreciated by the market while enhancing Meta’s ability to further scale and innovate its leading advertising business.
Wearables: The success of Ray-Ban AI glasses and progress on Project Orion signal Meta’s growing influence in smart wearables, positioning it as a leader in the next wave of consumer technology.
Meta’s unparalleled reach and advertising expertise, combined with AI-driven product innovation, provide a durable competitive moat. As the company continues to optimize monetization and invest in next-generation technologies, it is at the forefront of growth in the evolving digital advertising landscape.”
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
While discussing the tech giants’ earnings, Jim Cramer turned to Apple Inc. (NASDAQ:AAPL). He called the earnings report “strong” but with a “muddier outlook” in his view. He then went over the company’s earnings and gave his own analysis on them as well as the potential impact of tariffs on their costs. Here’s what he said:
“Apple gave us a classic top and bottom line beat with sales up 5% year-over-year and earnings per share up 8% despite strong FX headwinds in the period.
Everyone was worried about iPhone sales, but those came in nearly $1 billion ahead of expectations with Apple CEO Tim Cook telling me tonight there was no evidence of a temporary sales boost from consumers buying ahead of the tariffs. China sales a little light of but isn’t that expected by now? Offset by much better than expected sales in the Americas and the rest of Asia.
Apple continues to achieve record sales in many emerging markets. The stock, by the way, get this: It’s reduced its share count by over 40% since 2012. It announced a new $100 billion dollar share purchase repurchase tonight. Only the very consistent service revenue line was light. That was disappointing. Got to call it when I see it.
I expect that the company will give more color on the exposure to tariffs and the potential impact that they might have on the rest of the year during the earnings call which is currently ongoing. And while the strength of the first quarter results themselves are a great reminder of why it never really pays to get too negative on the world’s largest company, Apple’s estimating it will have $900 million in cost increases and tariffs next quarter. That is suboptimal. Not their fault. It will matter, but it’s suboptimal. […]
Even though it’s the slowest growing and the most tariffed, it does still make the most beloved products in the world.”
Here’s what Columbia Seligman Global Technology Fund said about Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter:
“The fund maintained a position in Apple throughout the quarter through the release of the company’s new iPhone 16 in September. Company leaders were excited about the release of the new model, as this is the first model that will feature enhanced AI capabilities through the Apple Intelligence features. Sales for the first few weeks in October and November trailed behind year over year sales from the iPhone 15, as availability of Apple Intelligence was not compatible with all iPhone models. Apple announced a partnership with OpenAI that has allowed the integration of ChatGPT into the Apple ecosystem, separate from the core Apple Intelligence features. This partnership highlights continued progress from Apple to introduce AI capabilities into its products and we expect the iPhone 17 to have even more expansive AI capabilities, increasing potential demand for the new model that is on track to be released in 2025.”
5. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
Cramer briefly addressed Alphabet Inc. (NASDAQ:GOOGL) in the context of tech’s recent earnings, noting surprise that its AI product Gemini hadn’t hurt core search revenues. Although he personally no longer favors the stock, he acknowledged its resilience in the current market:
“We’ve heard already from Alphabet, which surprised people with how Chatbot Gemini didn’t cannibalize Google, even though there are concerns that Google made less money per search click and it could spiral. I don’t care for the stock anymore, but I do know it’s done better than most stocks in this market since in the last few weeks.”
Here’s what Oakmark Fund said about Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2025 investor letter:
“Alphabet was the top detractor during the quarter. The U.S.-headquartered company’s stock price declined despite having posted fourth-quarter 2024 earnings that were in line with consensus expectations. Search revenue growth remained strong, and management reiterated that the new “AI Overviews” feature is driving higher engagement with comparable monetization. The one miss during the quarter was in the Cloud segment, where revenue grew 30% year-over-year but fell slightly short of consensus expectations. We believe the shortfall was largely due to short-term capacity constraints and that the long-term growth outlook for Google Cloud remains robust. We continue to see Alphabet as a collection of great businesses that can further benefit from the company’s world class AI capabilities. With shares trading at just 15x our estimate of next year’s earnings per share, we believe the stock is meaningfully undervalued.”
4. Tractor Supply Company (NASDAQ:TSCO)
Number of Hedge Fund Holders: 40
Cramer brought up Tractor Supply Company (NASDAQ:TSCO) to examine how Wall Street reacts to companies that miss expectations but offer transparency. After a disappointing quarter, the stock rebounded slightly, and Cramer credited management’s candidness and fundamentals like strong customer retention as reasons for cautious optimism. Here’s what he said:
“Consider the case of Tractor Supply. It’s the largest rural lifestyle retailer in the United States. Couple thousand stores here. Last week, the company missed expectations across the board. Declining same store sales, revenue miss, earnings miss, and cut their full year forecast, issue downbeat guidance for the current quarter. And that’s why the stock, which had already been under pressure for the past few months, fell over 3% last Thursday. But then since then, the stock has stabilized, making back most of its losses. It’s almost as if Wall Street appreciated management’s candour.”
Tractor Supply Company (NASDAQ:TSCO) is the leading retail chain catering to rural Americans, offering products for farming, pet care, gardening, and outdoor living. Its niche in essential, needs-based categories like animal feed gives it resilience even during economic slowdowns.
3. Oddity Tech Ltd. (NASDAQ:ODD)
Number of Hedge Fund Holders: 21
Oddity Tech Ltd. (NASDAQ:ODD) was highlighted as one of the few consumer companies to deliver a blowout quarter this earnings season despite tariff concerns. Cramer praised its revenue growth, gross margin resilience, and use of AI, but warned investors not to chase the stock after its massive rally. Here’s what his analysis:
“For those of you who don’t remember, Oddity is this direct-to-consumer co cosmetics company. It’s based in Israel, and I’ve liked it for a while now. But until this week, the stock hadn’t really given us a reason to get excited. Since late 2023, it’s basically been stuck in the 40s. Nothing much to write home about.
But on Tuesday night, Oddity reported a fabulous beat and raise quarter. Something we haven’t seen that often this earning season because everyone’s so worried about tariffs. In response, the stock shot up 30% yesterday, surging to a new all-time high. If you didn’t know any better, you would have thought that maybe caught a takeover bit. Yeah, the quarter was just that good. […]
What got people excited here was the new full year forecast. They’re talking about 22 to 23% revenue growth. And they said their outlook incorporates their view of tariff and trade related headwinds. And that view is pretty darn bullish. […]
Wow. That’s what we want to hear. And that’s why Oddity expects its gross margin to only take a 50 to 100 basis point hit from tariffs. So many others are so much higher. In fact, they see this as an incredible opportunity to take market share from their competitors who have much more exposure to Chinese manufacturing. […]
I believe him [the CEO Oran Holtzman] because tariffs aside, this is a very strong business. As Oddity explains it, they’ve been investing for years in anticipation of a big shift in beauty spending towards online channels. That’s now playing out and this company’s a big winner.
Normally people prefer to buy the stuff in a store so they can see how it looks. But Oddity’s been able to recreate that experience online with generative AI technology that can show you how the makeup will look on your face and it is such a huge hit. […]
Now, after the stock spectacular run yesterday, it’s obviously gotten a lot more expensive. It now sells for just over 33 times the new consensus earnings estimate for 2025. Just statingthe obvious: you’re chasing a bit if you’re buying it up here. Ideally, if you want to get into this one, at least in the way that we think about it here on Mad Money, I think you should wait for a market-wide pullback that knocks the stock down a bit from these elevated levels.
But the bottom line, oddity stock caught fire yesterday because it reported a strong quarter, raised forecast and then gave you a total all clear on the tariff situation. That means the stock’s safe to own in this environment. Although again, if you don’t own already, maybe you wait for a bit of a sell-off, a pullback to pull the trigger. In such a volatile market, I bet you get a better chance.”
Oddity Tech Ltd. (NASDAQ:ODD) is an Israeli digital beauty and wellness platform known for its data-driven, AI-powered product development and virtual try-on tech, which helps it dominate online cosmetics retail through brands like Il Makiage and SpoiledChild.
2. Hasbro, Inc. (NASDAQ:HAS)
Number of Hedge Fund Holders: 39
Hasbro, Inc. (NASDAQ:HAS) came up after its latest earnings beat, which Cramer attributed to the surging popularity of Magic: The Gathering. The CEO joined the show to discuss tariff pressures, product sourcing, and how they’re navigating rising costs without overreacting. Here’s what Cramer said:
“What do you make of what’s happening at Hasbro, the iconic maker of toys and games? Last week, the company reported an impressive top and bottom line beat driven by strong momentum in their Magic the Gathering business. But management also noted that the tariffs are tough for their business, even if there are some things they can do to mitigate the damage. In response, the stock jumped more than 14% and it’s just related a few more points. So, can it keep running? Maybe investors should get cautious. […]
[Talking directly to the CEO, Chris Cox] I got a feeling that you’ll be able to- you’ll be more resourceful and you’re a conservative guy. You got credit for being conservative. The companies that are being aggressive, they’re the ones whose stocks are getting killed. I think you’re doing this exactly right.”
Hasbro, Inc. (NASDAQ:HAS) is a global toy and entertainment company behind iconic brands like Monopoly, Nerf, and Magic: The Gathering, with growing investments in digital gaming, licensing, and experiences.
1. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Amazon.com Inc. (NASDAQ:AMZN) came up as part of the broader tech earnings conversation, with Cramer calling its Q1 results strong despite the stock trading lower on a conservative outlook. He broke down both the positive earnings surprise and the mixed reception to AWS’s performance. Here’s what he said:
“Then there’s Amazon, which is trading lower after hours because the company gave a conservative forecast for the second quarter, as they typically do. And who can blame them given the impossible-to-game tariff situation.
But looking at the first quarter results themselves, Amazon also reminded us why it’s one of the world’s best companies. Why you can’t bet against it.
Sales grew 9% year-over-year, topped expectations by over $600 million, led by double digit growth from Amazon Web Services, and the company’s increasingly important advertising business. The gross margins there are insane. Earnings per share, meanwhile, is up an incredible 62%. Beat the $1.36 consent assessment by 23 cents.
Now, one of the more quizzical things from the Amazon quarter were the results from the Amazon Web Services cloud computing business, which is such a fabulous business. Sales were up 17%, very good, but that was light- that was light of what we expected.
The operating margins on the other hand were fantastic. They reached nearly 40%, street was only looking for 35. And that’s why Amazon Web Services segment profit came in over $1 billion above expectations. Essentially, all the total company’s bottom line beat in the quarter. But you know, again, people found a little bit of what we call ‘hair on the story’.”
Here’s what Lakehouse Global Growth Fund said about Amazon.com Inc. (NASDAQ:AMZN) in its Q1 2025 investor letter:
“Amazon posted a solid quarterly result with ongoing cost discipline driving significant operating leverage across the business. Net sales grew 10% year-over-year (11% in constant currency terms) to $187.8 billion whilst operating income grew 61% to $21.2 billion, well ahead of guidance and analysts’ expectations. Growth within the core e-commerce business remained healthy as the company delivered a recordbreaking Black Friday and Cyber Monday holiday shopping event. For the past two years now, management has been laser focused on driving efficiencies across the retail operations and these efforts are continuing to pay off. Notably, retail margins for their international segment have now been positive for four straight quarters and currently sit at 3.0%, which is pretty remarkable considering that just over two years ago they sat at -8.9%.”
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