Jim Cramer Says You Should Stay Away from These 5 Stocks

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1. Tesla Inc (NASDAQ:TSLA)

Number of Hedge Fund Investors: 81

Cramer believes Tesla does not deserve to be a part of the Magnificent Seven group of stocks. After the company’s latest quarterly results, Cramer tweeted:

“We could look the other way and just decide this Tesla quarter was an anomaly. Or we could just say “and then there were six.” But to ignore what is happening to Tesla’s stock or to avert your ears from last night’s call seems too glib right now.

O’keefe Stevens Advisory stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its fourth quarter 2023 investor letter:

“In my Q4 2022, l made three predictions: 1. One of our top 25 holdings gets acquired 2. TSLA is a sub $200B market cap by the end of 2023 3. Crypto, the final blow.

Tesla, Inc. (NASDAQ:TSLA) is a sub $200B market cap by the end of 2023. Grade: D. TSLA performed contrary to expectations, appreciating approximately 100% in 2023 and ending the year with an $880 billion market cap. We were “just a bit outside,” but I’m not convinced our reasoning was flawed.

The typical strong correlation between earnings estimates and stock prices did not hold for TSLA during the year. Positive revisions suggest a company outperformed expectations, resulting in a higher price/valuation. Negative revisions suggested estimates were too high, and the stock should decline to meet a weaker outlook…” (Click here to read the full text)

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