Jim Cramer, the host of Mad Money, told viewers on Tuesday that it may be time to lock in gains from stocks that have gone parabolic.
Tonight, we are going to talk about something I despise. We’re going to talk about froth, the process by which we overpay for things that might not be worth as much as we think, maybe much less than we think… Let’s start with a simple supposition. While many long-term winners have struggled since the beginning of the new year, the speculative stocks and momentum stocks have really caught fire. They’re different, very different. The speculative names are at the heart of the froth… But there’s been a huge amount of money made in these stocks over the past few weeks, and that’s one part of the problem.
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Cramer went on to say that many of these stocks represent companies with no earnings and minimal sales. He acknowledged that speculation can be a legitimate way to make money, but he emphasized that the main word is “make.” He explained that profits are not real until investors actually sell and lock in gains. He emphasized that he was not calling for selling everything, but instead encouraged investors to move a meaningful portion of stock holdings into cash. He said that by doing that, investors are effectively playing with what he calls the house’s money rather than risking unrealized gains.
The bottom line: There are better non-tech stocks to own. In this frothy market, it’s time to diversify. Remember, you want to make the most amount of money with the least amount of risk. That’s what this business is about, and right now, that’s simply not tech. Make these changes, and I think you’ll be glad you did. No panic, just be smarter.
Our Methodology
For this article, we compiled a list of 16 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on January 20. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, sourced from Insider Monkey’s database of 978 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Talked About These 16 Stocks and Market Froth
16. Procore Technologies, Inc. (NYSE:PCOR)
Number of Hedge Fund Holders: 45
Procore Technologies, Inc. (NYSE:PCOR) is one of the stocks Jim Cramer talked about, along with market froth. A caller sought Cramer’s opinion regarding a long-term hold in the stock. In response, he said:
Alright, now this is an enterprise software company, and we are seeing tremendous pressure on these by people who think they can go into Claude, which is owned by Anthropic, and create the same software product that they might be paying a fortune for. I don’t know if Procore can be easily, let’s say, I don’t know, copied, let’s say copied, but I do know that that’s the problem with these stocks, and they’re not going to let up. You have to be careful, Procore.
Procore Technologies, Inc. (NYSE:PCOR) provides a cloud-based platform that enables builders and owners to manage project planning, site safety, and financial tracking. Antipodes Partners stated the following regarding Procore Technologies, Inc. (NYSE:PCOR) in its third quarter 2025 investor letter:
We trimmed our longstanding position in Microsoft against strength and initiated a position on Procore Technologies, Inc. (NYSE:PCOR), a leading US construction management software used by the largest general contractors, project owners and specialty trades globally. Concerns including competition and soft construction demand presented the opportunity to establish a position. Procore continues to see new wins and an expansion in existing contracts given it is over-indexed to non-residential segments such as datacentres, manufacturing and healthcare, despite the macro backdrop. Our analysis suggests Procore can see revenue growth re-accelerate towards high-teens as overall construction demand improves, broader industry digitisation drives technology adoption and its go-to-market ramps to secure greater share in new geographies and segments.
15. Allegion plc (NYSE:ALLE)
Number of Hedge Fund Holders: 31
Allegion plc (NYSE:ALLE) is one of the stocks Jim Cramer talked about, along with market froth. During the lightning round, a caller asked about Cramer’s thoughts on the stock, and he replied:
That’s a good company. It’s an electronic security company, and it’s a good company. It’s not that expensive. It’s the kind of company that you can buy into weakness and not feel like you’re going to get your head blown off, which is how I feel about a lot of these stocks that are up between 50% and 80% so far this year already.
Allegion plc (NYSE:ALLE) provides physical and digital security solutions, ranging from locks and exit devices to integrated access control software. It sells its products and maintenance services to residential and commercial customers.
On January 7, Barclays reduced its price target on the company’s stock to $180, down from $187, while maintaining an Equal Weight rating. The firm made the revision during a broader update to price targets within the multi-industry sector for the fourth quarter. Barclays noted that the demand appears to be strengthening, especially due to a rise in orders related to artificial intelligence.
