On Thursday, Mad Money host Jim Cramer talked about the day’s market developments as he highlighted the intense attention drawn by a recent initial public offering. He said:
“This may mark a whole new phase of the bull market, the phase of ludicrous valuations. The year of marvelous thinking will be gone. You have to hope that Figma’s a one-and-done bout of enthusiasm. It just can’t be the norm. Did you hear me?”
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As per Cramer, what we are seeing could signal a shift into a new stage of the current bull market, one defined less by earnings and more by what he called “ludicrous valuations.” He noted, “The year of marvelous thinking will be gone.” He cautioned that this kind of enthusiasm, if not contained, could distort the market’s focus. His concern was not just about one company, but about what it might represent, a broader return to speculative behavior, and he added, “It just can’t be the norm.”
Cramer emphasized, “We gotta put this genie back in a bottle.” He admitted that a single day of overvaluation might be tolerable, but a continued pattern could do lasting damage. He went on to say that, “Maybe the best thing is to try to get at least one wish from the genie.”
“The bottom line: If we can stick to price to earnings multiples, not price to sales, that means the bull would be still be intact and we can live to make more money another day. Everyone acts like Microsoft and Meta have reached insane valuations that are way too high, but their stocks are priced very reasonably. If anything, they deserve to be a lot higher. If the Figmas in the world that have gone to crazy levels and are probably set to go higher still before they repeat the lesson, if they win, then let me just say we are all on borrowed time.”
Our Methodology
For this article, we compiled a list of 18 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on July 31. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the first quarter of 2025, which was taken from Insider Monkey’s database of 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).
Jim Cramer Spoke About These 18 Stocks
18. Shake Shack Inc. (NYSE:SHAK)
Number of Hedge Fund Holders: 39
Shake Shack Inc. (NYSE:SHAK) is one of the stocks that Jim Cramer spoke about. Cramer mentioned the stock during the episode and said:
“Or what about Shake Shack? Terrific company with a stock that took a real header today, down 14%. As I go over the conference call, I came across this fly in the ointment, ‘The majority of the commodity situation is in beef, and obviously we sell a lot of beef.’ Boom.”
Shake Shack (NYSE:SHAK) operates and licenses restaurants providing a menu of burgers, chicken, hot dogs, fries, shakes, frozen custard, and beverages. Cramer mentioned the company in a January episode of Squawk on the Street and commented:
“[how market viewed ex-Mag 7 on the day of the sell off] I mean, it is interesting, by the way, that Rob Lynch moved over to Shake Shack, and he’s done a great job. But I will say that not the right day to ring the opening bell, in the sense of its line of focus. But a good sense that he’s brought the company to a growth pattern that’s far in excess of we thought it was going to have. He, Papa John’s, turnaround guy.”
Since the above comment, SHAK stock is up 1.5%.
17. Align Technology, Inc. (NASDAQ:ALGN)
Number of Hedge Fund Holders: 52
Align Technology, Inc. (NASDAQ:ALGN) is one of the stocks that Jim Cramer spoke about. Cramer highlighted that the company “missed its numbers badly.” He remarked:
“What do you make of the shocking decline in a company like Align Technology? That’s the maker of Invisalign clear aligners. It’s the gold standard, the one that dentists love to recommend, but it missed its numbers badly, and its stock collapsed, down nearly 37%, one session. Let me tell you what CEO Joe Hogan, who again is no slouch, gave as his excuse for the weakness in his conference call. Listen to this, ‘In the face of a challenging and uncertain macroeconomic backdrop characterized by global tariff volatility, ongoing inflation, elevated interest rates, and unstable consumer confidence, we’re navigating with a clear focus to control what we can.’ Then he says, ‘significant headwinds across the consumer discretionary spend landscape’ has come to hurt these guys. I say, well, wait, wait a second, wait a second. We’re talking about clear braces here; we’re talking about your teeth. To me, that’s not really that much of a discretionary item, at least not in America, maybe in Britain. But most Americans get their teeth straightened, or at least they did. I mean, apparently now it’s becoming discretionary spending. People must really be strapped. Because I believe Hogan, I’ve had him on the show a bunch of times.”
Align Technology (NASDAQ:ALGN) develops and markets Invisalign clear aligners, retainers, and iTero intraoral scanners, as it provides digital solutions for orthodontic and restorative dental treatments. The company’s products include aligner systems for all age groups, 3D printed devices, and CAD/CAM software for dental professionals.
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