On Wednesday’s episode of Mad Money, host Jim Cramer addressed a familiar narrative that often resurfaces during strong market runs, a narrative that he says leads investors to make poor decisions. He warned viewers about being swayed by what he called “moronic stuff” that causes people to sell out of top-performing stocks.
“It’s starting up again. You know the litany: the market’s too concentrated, gains just in a handful of stocks. The whole thing’s a house of a card, so sell. That was the story yesterday, and we heard it again this very morning, even as the averages opened lower and then rallied through the day.”
READ ALSO: Jim Cramer Answered Questions About These 10 Stocks Recently and Jim Cramer Put These 7 Stocks Under a Microscope.
The Dow Jones Industrial Average closed down 25 points. Meanwhile, the S&P 500 gained 0.51%, and the Nasdaq rose by 1.02%. Cramer argued that every time these concentration worries resurface, investors panic and sell shares in companies that are actually performing exceptionally well.
He described the behavior as self-defeating, especially when it causes people to exit positions in what he called “the best stocks in the world.” Cramer pointed to Wednesday’s standout performances by two of the most closely watched tech giants. Google’s parent company’s shares jumped 9%, setting a new record high. He added:
“Apple stock jumped almost 4%. I caught the latter for the trust, but I missed the 9% Alphabet gain. Why did I miss it? Because of the dangerous concentration that all these really smart people told me was going to be dangerous when it wasn’t dangerous at all. It was just lucrative.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on September 3. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 900 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).
Jim Cramer Shed Light on These 10 Stocks Recently
10. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 74
Eaton Corporation plc (NYSE:ETN) is one of the stocks that Jim Cramer recently shed light on. Inquiring about the stock, a caller expressed that they have been thinking about adding to their position. In response, Cramer said:
“I think you should. Now, my Charitable Trust owns it. We talk about it a lot for, we think it is just a terrific stock, and club members know we like it. By the way, I just, I think Vertiv’s a good company too. I just am not recommending that one right now.”
Eaton Corporation plc (NYSE:ETN) delivers power management solutions through electrical, aerospace, vehicle, and eMobility systems. The company’s products improve efficiency, safety, and reliability for industrial, commercial, and transportation applications. Cramer talked about the stock in a July episode, as he commented:
“We saw Eaton and Parker-Hannifin. If you’re from the Midwest, these are destination places… but those are a function of strong data center orders that came from lead contractors ABB and Legrand, two European construction companies that just reported that are huge builders of these warehouses full of servers. There’s no doubt that the data center buildout is the single biggest construction boom, perhaps since World War II. You can see it if you look at Oracle every day, by the way. I like the buildout. There are many many orders coming to them. I keep telling you these stocks are good… Eaton jumped more than $17 or nearly 5% as investing club holders know. That Eaton move turned my earnings season around because it’s a core position in my Charitable Trust.”
9. PJT Partners Inc. (NYSE:PJT)
Number of Hedge Fund Holders: 16
PJT Partners Inc. (NYSE:PJT) is one of the stocks that Jim Cramer recently shed light on. When a caller asked Cramer’s thoughts on the company during the lightning round, he said:
“You know, we don’t really know what they own inside, you know, it’s like some sort of crazy, it’s a service thing that I don’t really understand. It’s a, just buy Goldman Sachs.”
PJT Partners Inc. (NYSE:PJT) is an investment bank that provides strategic, shareholder, capital markets, and restructuring advisory services. The firm advises on M&A, financings, governance, fundraising, and complex investor and geopolitical matters. Carillon Tower Advisers stated the following regarding PJT Partners Inc. (NYSE:PJT) in its Q4 2024 investor letter:
“PJT Partners Inc. (NYSE:PJT) is a global advisory-focused boutique investment bank. The stock performed well, driven by solid quarterly earnings and an upbeat outlook for 2025. Election results also aided the stock as M&A is expected to pick up under the new administration.”
8. Chime Financial, Inc. (NASDAQ:CHYM)
Number of Hedge Fund Holders: 46
Chime Financial, Inc. (NASDAQ:CHYM) is one of the stocks that Jim Cramer recently shed light on. During the lightning round, a caller asked what they should do with the stock, and Cramer replied, “You sell that and buy Affirm. There you go.”
Chime Financial, Inc. (NASDAQ:CHYM) is a fintech company that provides digital banking and payment services through its mobile app. Its platform helps users manage spending, saving, credit building, and financial security. On August 28, the company announced a partnership with Ubiquity to provide employees access to Chime Workplace, its suite of fee-free financial wellness tools. The platform offers earned wage access, high-yield savings, credit-building solutions, and real-time insights on financial health, with early employee response showing strong engagement and satisfaction.
7. Martin Marietta Materials, Inc. (NYSE:MLM)
Number of Hedge Fund Holders: 64
Martin Marietta Materials, Inc. (NYSE:MLM) is one of the stocks that Jim Cramer recently shed light on. Cramer mentioned the stock during the episode, as he stated:
“Okay, what’s going on with the stock of Martin Marietta Materials… Over the past few years, this company’s been a big beneficiary of federal infrastructure spending, and there’s still a lot of money left in Biden’s old infrastructure package. I had no idea until I read its deck. They had a big analyst meeting today. The last quarter was solid, too, and the stock’s up a quick 38% from April lows.”
Martin Marietta Materials, Inc. (NYSE:MLM) supplies aggregates, cement, concrete, asphalt, and related products for construction, infrastructure, and industrial applications. In addition, the company produces magnesia-based chemicals and dolomitic lime used in steelmaking, environmental solutions, and other industries. Cramer mentioned the stock in an August 2024 episode. He commented:
“The more tangible plays are going to be Martin Marietta Materials, which represent the basics of building out new housing developments. But those really start winning later on, once the homebuilders fully embrace new construction.”
Since the comment, Martin Marietta Materials, Inc. (NYSE:MLM) stock has gained around 16%.
6. Macy’s, Inc. (NYSE:M)
Number of Hedge Fund Holders: 36
Macy’s, Inc. (NYSE:M) is one of the stocks that Jim Cramer recently shed light on. Cramer discussed the company’s earnings and believed that it was proof of a “turnaround brewing”. He remarked:
“Oh, here’s a great story. Look at this incredible move in the stock of Macy’s, up over 20% today in the wake of a tremendous quarter. Despite a tough environment for retail, this company, which also owns Bloomingdale’s [and] Bluemercury, reported a stellar set of numbers this morning. Macy’s posted a stunning 22-cent earnings beat off a 19-cent basis, higher than expected revenue, and the best same-store sales numbers in 12 quarters. Even better, management raised their full-year forecast for sales and earnings. I’ve been saying there is a turnaround brewing here, and boy, did we get proof of it today.”
Macy’s, Inc. (NYSE:M) is an omni-channel retailer offering apparel, accessories, cosmetics, home goods, and more under the Macy’s, Bloomingdale’s, and Bluemercury brands.
5. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 133
Netflix, Inc. (NASDAQ:NFLX) is one of the stocks that Jim Cramer recently shed light on. A caller mentioned that they profited after selling their position in the stock and asked if they should buy back the shares. Cramer replied:
“Okay, here’s the issue: you did, you did the right thing. Netflix went up a huge amount, and you took a profit. And we should never feel bad about profits. We should only feel bad about losses. But if the question is, do I like Netflix, the stock? You bet I do.”
Netflix, Inc. (NASDAQ:NFLX) delivers streaming entertainment including TV series, films, documentaries, and games across multiple genres and languages. When a caller asked about whether they should buy more of the company stock during a July episode, Cramer responded:
“Look… Let me tell you, this is sometimes, this is an anecdotal stock, and I think right now people feel like, I don’t know, Netflix, what’s on? Nothing. I was watching Amazon last night for heaven’s sake, so that’s what I think’s causing it. Don’t worry, it’s going to be fine. They’re smart fellas.”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the stocks that Jim Cramer recently shed light on. Cramer discussed the company’s AI strategy during the episode, as he commented:
“Now, though, let us talk about what really matters. What happened today? Google and Apple, that’s what happened because they are today’s example of the dreaded, dangerous concentration… Was I a moron… perhaps deserving endless opprobrium for what I did here? No. You see, fortunately, I didn’t worry completely about concentration. I had a credo about Apple… Own it, don’t trade it, I said. I needed it because in the trial, we learned that Google paid more than $20 billion to exclusively preload its search engines into Apple devices…
It turns out, though… Google still has to pay Apple for that deal. Otherwise, the ruling would just be a handout to an aspiring monopolist. [The] judge actually said that. You know what that means? I want you to listen to this. It means that Apple no longer needs to pay one of these hyperscalers money or buy a bot like a Perplexity for billions of dollars. Instead, all these bot companies will now probably have to compete to pay Apple [for] access to those more than… [over 1] billion users. That’s right. There isn’t a clear winner right now in the chatbot space, but if you can pay Apple a fortune to make yours the default, someone’s going to write that check. One of these companies is going to secure their Google-like status in AI, leaving behind a bunch of Bings who’s spending billions for naught. Yesterday, Apple had no cards. Today, [they] have all cards. Turns out, Apple always had an AI strategy: pay to play.”
Apple Inc. (NASDAQ:AAPL) develops and sells smartphones, computers, tablets, wearables, and accessories under brands like iPhone, Mac, iPad, and Apple Watch. Moreover, the company provides cloud, support, and subscription services including Apple Music, Apple TV+, Apple Pay, and the App Store.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks that Jim Cramer recently shed light on. Cramer talked about the company’s recent antitrust ruling in its favor and his Charitable Trust’s position in the stock. He said:
“Now, though, let us talk about what really matters. What happened today? Google and Apple, that’s what happened because they are today’s example of the dreaded, dangerous concentration… I listened to the sirens and saw one of the canaries fighting for its life last year. The canary was Google, now Alphabet. After owning this stock for years, in 2024, I decided that its version of artificial intelligence, Gemini, was cannibalizing its regular search… And more important, I was worried about the antitrust regulators going after them… You can’t be a monopolist. It’s illegal. I thought for a moment that this could be good news, that Alphabet could be broken into different pieces and that would amount to more than the sum of its parts kind of thing.
You know, [I] figured, wow, Waymo this and YouTube that, but the analysts and prosecutors told me that Alphabet would have to divest this thing called Chrome for nothing, maybe even have to pay to make Chrome independent…
I had a huge gain in Alphabet for the Charitable Trust. Now it was in jeopardy. It was supposed to be a death sentence for Alphabet, and I wasn’t going to electric chair with this one, so we sold it for the trust. In retrospect, I was a fool.
The concentration argument, as I’ve said, was a total canard… The court yesterday basically took back last year’s harsh ruling. It was a do-over. There’s no monopoly here at all… In the end, I listened to the sirens of negativity and I left the stock, but nothing really happened. I want my money back, but the scaremongers aren’t going to give it to me, the ones who worried about concentration. I left 50 points on the table.”
Alphabet Inc. (NASDAQ:GOOGL) provides a wide range of products and platforms, including Google Search, YouTube, Android, Chrome, and Google Play, along with hardware and subscription services. The company also offers cloud solutions, AI, and enterprise tools through Google Workspace, and invests in emerging businesses.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks that Jim Cramer recently shed light on. Cramer mentioned the company during the episode and said:
“There truly is a tremendous concentration of capital tied up in a handful of companies, but there’s so much fear mongering about this phenomenon that it’s almost guaranteed to lead you in the wrong direction. 12 years ago, I helped coin a term called FANG, Facebook, Amazon, Netflix, Google, because these companies were changing the world. Their spectacular growth prospects made them incredible investments… You had to hold onto these for dear life. Their impact on our lives was palpable. And of course, they’re worth far more now than they were selling for 12 years ago. There was a concentration then, there’s a concentration now. It’s not fatal, it’s lucrative. At the time, though, I took a lot of heat about my selection… Ladies and gentlemen, we’ve now had more than 12 years of concentration, a dozen years. All along, it’s been the same stocks… Amazon’s the largest retailer in the world. Its web division is doing amazing, phenomenal.”
Amazon.com, Inc. (NASDAQ:AMZN) operates a global retail platform. It provides consumer goods, digital media, and devices, alongside services for third-party sellers, creators, and advertisers. Additionally, the company offers cloud computing through AWS and subscription services like Amazon Prime.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the stocks that Jim Cramer recently shed light on. Cramer discussed the strength of big tech stocks like META, as he said:
“There truly is a tremendous concentration of capital tied up in a handful of companies, but there’s so much fear mongering about this phenomenon that it’s almost guaranteed to lead you in the wrong direction. 12 years ago, I helped coin a term called FANG, Facebook, Amazon, Netflix, Google, because these companies were changing the world. Their spectacular growth prospects made them incredible investments… You had to hold onto these for dear life. Their impact on our lives was palpable. And of course, they’re worth far more now than they were selling for 12 years ago. There was a concentration then, there’s a concentration now. It’s not fatal, it’s lucrative. At the time, though, I took a lot of heat about my selection… Ladies and gentlemen, we’ve now had more than 12 years of concentration, a dozen years. All along, it’s been the same stocks… Facebook became Meta. Why? Because of Instagram, because of WhatsApp, because of reels, because of its dominance in advertising.”
Meta Platforms, Inc. (NASDAQ:META) develops technologies and applications that enable social connection, communication, and digital interaction across Facebook, Instagram, WhatsApp, Messenger, Threads, and more. Moreover, it creates hardware and software for virtual, augmented, and mixed reality experiences through Reality Labs.
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