We recently published an article titled Jim Cramer Discusses These 12 Stocks & Says Late Selloffs Are Deliberate. In this article, we are going to take a look at where Diamondback Energy, Inc. (NASDAQ:FANG) stands against the other stocks.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on a late-hours market selloff. Cramer shared that he was “tired of it [the selloff]. I’m tired because it just seems totally artificial. I mean someone comes in and blitzes the market in the last twenty minutes.” He believes “There’s no reason to do that other than you wanna take it down. I don’t know why, I’ve seen this periodically in my career. These are, what I regard as being, deliberate. Not manipulation, because that’s too strong.”
The selloffs are “a deliberate attempt to send the market down because the market can’t handle the level of selling,” he added. He added that since “buybacks stop at three thirty. So if you really want to get a good price you wouldn’t just come there and jam it.” Cramer posited that the selloff was done by “someone who wants the market down. . . .You know, David, this is no sin to point it out. There are a lot of people, let’s say someone wanted the market up. You know, they come in at the end of the quarter and take it up. Somebody wanted the market down. It made no sense to come in. This is the third day that they blitzed the close.”
When asked whether we’ll ever find out who was behind the selloff, the CNBC TV show host stated: “Well no, and you never will know.” Cramer’s co-host David Faber also wondered about the role of algorithmic trading in the markets. Cramer believes that such traders “think they’re going to make money. They’re not doing it.”
The conversation then shifted to the Magnificent 7 stocks which have been underperforming lately. According to Cramer:
“Yeah but Morgan Stanley’s saying they’re underweight in these big caps. But then again if you were actual weight in these big caps, you’d have thirty percent NASDAQ, you know and it would be mostly Mag 7. So to be underweight may not be as important. But this is what people are talking about.”
Another topic that he frequently discusses on his show is Elon Musk and DOGE. On this front, while some judges might have granted government employees reprieve, Cramer believes that it can be short-lived. He shared:
“Well they got a lot of Democratic judge[s] who are probably not in the favor of this thing. You got the right judge, you get in Supreme Court, they’re gonna win. I mean that’s the whole point. But I would say that Bank of America’s finally addressed it, really good fact. Yes. . . USAID, that’s all a dry run. It’s a dry run for the big guys. And the big guys are the Department of Defense and Medicaid, and here they come. They’re going.”
As for the spending cuts, he commented on a recent media article that “says is, alright, they did the little guys. Now, here comes the big guys. And we all would say that defense has too much spending. And by the way, the army has the fewest number of recruits since the war. So, I mean, you can say that it’s hardware but it is important to point out that the army is having a hard time getting . . .”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on February 25th.
For these stocks, we also mentioned the number of hedge fund investors. 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).
A pipeline worker overseeing the flow of crude oil into storage tanks from an integrated water system.
Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders In Q4 2024: 53
Diamondback Energy, Inc. (NASDAQ:FANG) is an American oil and gas company based in Texas. As has been the case with other energy firms, its shares have struggled recently as they are down by 14% over the past year. Like its peers, Diamondback Energy, Inc. (NASDAQ:FANG) struggled with low oil prices driving down demand and its shares last year. Cramer delved into the specifics of the firm’s share price performance:
“You know, FANG has been disparaged. We think FANG is out of favor. We’re wrong if we’re thinking about DiamondBack Energy. Because they had, maybe the greatest growth story that I have seen. Certainly better than some of the, Mag 7. These guys are the growth oil companies. They’re also, therefore it cuts both ways. But they have a lot of Permian, I was really excited about the quarter. These were really good numbers.”
“Well because they’re the most levered. So if oil goes down, they get hurt, if oil goes up, they used to be like Oxy. Remember Oxy was levered. These guys are the most levered.”
Overall FANG ranks 6th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of FANG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FANG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.