Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Jim Cramer Says You Should Avoid These 5 Stocks

This article presents an overview of Jim Cramer Says You Should Avoid These 5 Stocks. For a detailed overview of such stocks, read our article, Jim Cramer Says You Should Avoid These 11 Stocks.

5. Dominion Energy Inc (NYSE:D)

Number of Hedge Fund Investors: 26

On March 20, during his program on CNBC, Jim Cramer was asked by a caller about his thoughts on Dominion Energy Inc (NYSE:D). Cramer said that he does like “like” Dominion Energy Inc (NYSE:D) since he believes Dominion Energy Inc (NYSE:D) made “a lot of mistakes” with its balance sheet.

As of the end of the fourth quarter of 2023, 26 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Dominion Energy Inc (NYSE:D). The most notable stake in Dominion Energy Inc (NYSE:D) is owned by Ric Dillon’s Diamond Hill Capital which owns a $185 million stake in Dominion Energy Inc (NYSE:D).

4. Rivian Automotive Inc (NASDAQ:RIVN)

Number of Hedge Fund Investors: 32

Jim Cramer recently said during his program that he’d rather buy a Rivian car than the stock. Cramer said he’s worried about Rivian Automotive Inc’s (NASDAQ:RIVN) balance sheet. Jim Cramer has been having mixed thoughts about Rivian Automotive Inc (NASDAQ:RIVN) over the past several months. In November last year Cramer said that he would prefer Rivian Automotive Inc (NASDAQ:RIVN) shares over Lucid. In December Cramer said that Rivian Automotive Inc (NASDAQ:RIVN) is a “survivor” in the EV space. But Cramer’s latest comments on Rivian Automotive Inc (NASDAQ:RIVN) show that he wants investors to avoid the stock for now.

As of the end of the last quarter of 2023, 32 out of the 933 funds in Insider Monkey’s database were long Rivian Automotive Inc (NASDAQ:RIVN). The biggest stake in Rivian Automotive Inc (NASDAQ:RIVN) is owned by D. E. Shaw which owns a $395.2 million stake in Rivian Automotive Inc (NASDAQ:RIVN).

Here is what Baron Global Advantage Fund has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q3 2023 investor letter:

“Shares of Rivian Automotive, Inc., a U.S.-based electric vehicle manufacturer, continued their volatile trading, and after declining during the first half of 2023, rose 45.7% during the third quarter. Rivian’s unit economics are improving as a result of several factors: i) the company’s production rate is increasing, which enables it to better absorb fixed costs; ii) Rivian is ramping-up the usage of more price effective technologies, such as LFP batteries and its in-house developed motor, Enduro; and iii) the company is benefiting from renegotiated supplier agreements, as its scale and purchasing power have significantly increased over the last few years. Management expects continued progress in profitability ahead as Rivian further scales production. We remain shareholders and believe that the release of Rivian’s new smaller SUV dubbed R2, which is planned for early 2024, would enable the company to compete in the higher volume SUV segment, and significantly expand its addressable market. On the liquidity front, we expect the company to raise additional funds to support its longer-term business plans.”

3. Super Micro Computer Inc (NASDAQ:SMCI)

Number of Hedge Fund Investors: 40

Jim Cramer is explicitly recommending investors to stay away from Super Micro Computer Inc (NASDAQ:SMCI), which is up about 240% this year so far. Cramer has been repeatedly saying that Super Micro Computer Inc (NASDAQ:SMCI) shares have become too hot for him. In a latest program, when asked about the stock, Cramer said:

“No, no, no, no. Look, I would rather buy Nvidia a hundred points higher than it is now than buy SMCI.”

2. DraftKings Inc (NASDAQ:DKNG)

Number of Hedge Fund Investors: 55

DraftKings Inc (NASDAQ:DKNG) is one of the stocks Jim Cramer is recommending investors to avoid for now. In a recent program, Cramer told investors to hit a “pause” on the stock for now and let it come down before buying it. Cramer acknowledged that DraftKings Inc (NASDAQ:DKNG) is a “great company.”

Baron Discovery Fund stated the following regarding DraftKings Inc. (NASDAQ;DKNG) in its fourth quarter 2023 investor letter:

“We added to our position in DraftKings Inc. (NASDAQ;DKNG), the leading mobile sportsbook and gaming operator in the U.S. While we lowered our estimates for the fourth quarter due to lower hold in the month of November, it is important to keep in mind that while hold can be volatile from quarter to quarter, the company continues to slowly increase hold over time (primarily because of a higher percentage of the handle being in higher hold “parlay” bets). We continue to be attracted to DraftKing’s dominant market share and the scale advantages that come with this.”

1. Qualcommm Inc (NASDAQ:QCOM)

Number of Hedge Fund Investors: 78

Earlier this month Jim Cramer had called Qualcommm Inc (NASDAQ:QCOM) a “quandary” and said that while he understands that “people would wanna own it,” the stock is “not for me.” Over the past one year Qualcommm Inc (NASDAQ:QCOM) shares have gained about 37%.

As of the end of the fourth quarter of 2023, 78 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Qualcommm Inc (NASDAQ:QCOM).

Madison Sustainable Equity Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its fourth quarter 2023 investor letter:

“QUALCOMM Incorporated (NASDAQ:QCOM) also reported a solid fourth fiscal quarter with better than expected results. The company guided the first quarter ahead of expectations despite headwinds from Samsung as the inventory headwinds dissipate. Qualcomm remains well positioned in the mobile handset market and should benefit as Artificial Intelligence moves to edge devices which could drive an upgrade cycle.”

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. You can also look at the Jim Cramer Made Accurate Predictions About These 9 Stocks and the Jim Cramer Says You Should Stay Away from These 10 Stocks.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s what to do next:

1. Subscribe to our Premium Readership Newsletter for just $9.99 a month. (33% Off – was $14.99).

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

<b>Cancel anytime.</b> Turn off auto-renewal via our website with just a click.

 

Buy This $3 Stock Now Before the 400% Surge Begins

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

Get the ticker for our new “Underdog” pick and the full BTI case study for just 99 cents.

This exclusive offer is for NEW newsletter subscribers ONLY! Join our Premium Readership Newsletter for only $0.99 and become part of a savvy investor community.!

This offer vanishes in 7 days, so don’t miss your chance to lock in market beating returnsSign up NOW! The monthly newsletter comes with a 30-day, no-risk money-back guarantee. This offer is available to the first 1000 new investors who respond.

Regular price $9.99/mo. Cancel anytime.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $0.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Regular price $9.99/mo. Cancel anytime.