On Monday, Jim Cramer, host of Mad Money, shared his views on why the Magnificent Seven can continue to perform well, even after several years of substantial gains.
“Their best days are behind them. Those may be the six most damaging words to your portfolio, and hardly a day goes by when they don’t hinder you from making money, especially when we’re talking about the Magnificent Seven. So many people trade these great stocks rather than owning them.”
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Cramer questioned why, for over a decade, many insisted the best was already over for these companies, despite their continued growth. He emphasized that too many people treat these stocks as short-term trades instead of long-term holdings. Talking about the Magnificent Seven stocks, he described their balance sheets as having “essentially all the money in the world,” which he said gives them a unique advantage: the ability to fund innovation without restriction. He mentioned that this kind of liquidity allows them to outcompete rivals, acquire new businesses when necessary, and even withstand regulatory challenges.
He pointed out that even when government agencies take action against them, those efforts often fall short. Cramer pointed to scale as another defining advantage. He said that these companies operate across massive global networks and continue to grow, extending into new areas with relative ease. Another factor that he said sets the Magnificent Seven apart is their capacity for constant reinvention.
“The bottom line: Magnificent Seven are heroes, and I’m not going to tell you to sell heroes unless something changes that makes them feel a lot less heroic. That hasn’t happened, though. They’ve still got great management. They still are overflowing with cash, and their scale is so enormous that no one can stand against them. What’s not to like?”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on September 15. 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 Weighed In on These 11 Stocks
11. Jacobs Solutions Inc. (NYSE:J)
Number of Hedge Fund Holders: 35
Jacobs Solutions Inc. (NYSE:J) is one of the stocks Jim Cramer weighed in on. Cramer called the company a winner of the AI data center boom. He commented:
“One thing I love about the AI data center boom is that it just keeps creating winners in unexpected places. Take Jacobs Solutions. It’s the engineering construction firm that went through a complicated merger breakup deal last year that was very successful, but is now cleaning up, thanks in large part to its data center exposure, which has become a major growth driver for the company.”
Jacobs Solutions Inc. (NYSE:J) provides consulting, design, engineering, and infrastructure delivery services, including project and construction management and facility operations. L1 Capital stated the following regarding Jacobs Solutions Inc. (NYSE:J) in its second quarter 2025 investor letter:
“Jacobs Solutions Inc. (NYSE:J) (Jacobs) was founded in 1947 by Joseph Jacobs as a one-man chemical engineering consulting business. Over the next nearly 80 years the business has grown through international expansion and strategic acquisitions to become one of the largest engineering design firms globally with over 45,000 employees.
Management and their capital allocation decisions are central tenets to how we assess Quality businesses. Many management teams are focused on growth. Fewer management teams are willing to divest their way to greatness. Over the past decade, initially under the leadership of Steve Demetriou and subsequently by current Chairman and CEO Bob Pragada, Jacobs has undergone a drastic strategic shift in business profile, pivoting from its historically more cyclical and lower margin businesses…” (Click here to read the full text)
10. e.l.f. Beauty, Inc. (NYSE:ELF)
Number of Hedge Fund Holders: 43
e.l.f. Beauty, Inc. (NYSE:ELF) is one of the stocks Jim Cramer weighed in on. Noting its recent surge in value, a caller inquired about the stock but voiced concern about potential risks related to China and asked whether it is too late to buy in. In response, Cramer said:
“I would not worry about the China scare because it’s what I call baked into the stock. What I would worry about is the parabolic move we had today. I mean, ELF is up nine. I think we have to wait till it comes down. I’m thrilled you’re in the club, but I know if I were in the club right now and we owned ELF, I would say trim, don’t buy. That’s just a parabolic move, and that signals that it’s up too much.”
e.l.f. Beauty, Inc. (NYSE:ELF) develops and markets cosmetics and skincare products under brands such as e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare.
9. Chewy, Inc. (NYSE:CHWY)
Number of Hedge Fund Holders: 58
Chewy, Inc. (NYSE:CHWY) is one of the stocks Jim Cramer weighed in on. Cramer discussed the company’s earnings and analyst upgrades following it, as he said:
“What on earth happened this quarter that crushed the stock but simultaneously made two analysts feel confident enough to upgrade it? Okay, at first glance, this was a very good quarter… I don’t think the higher SG&A expenses were the real problem. In the end, this was about expectations. Most of Chewy’s numbers came in higher than the consensus analyst estimates, but they didn’t come in higher than the so-called whisper number, which is what the really bullish hedge funds were looking for…
Deutsche Bank and Seaport both upgraded it last Thursday because the stock suddenly got too cheap and the story is too good to ignore, which is one reason why it came roaring back today… Chewy put up 8.6% revenue growth in an industry that’s only been growing in the low to mid single digits. I mean, these guys are taking market share… On the conference call last quarter, management likened the subscription service to Amazon Prime or even a Costco membership. You know how much I like that? The value proposition here is just that good. Aside from the $49 annual subscription fee, Chewy+ members tend to spend a lot more time on average than non-members using Chewy. So they naturally want to sign up as many people as possible. I really like this…
So here’s the bottom line: I think it’s crazy that Chewy sold off over 16% in response to a largely good quarter. I think the two analysts were right to upgrade the stock last Thursday, and the buyers were right to step in today. So even though Wall Street’s not happy about all that Chewy spends on growth initiatives, call me on board. This will make Chewy a better investment long term. You have my blessing to buy it even after the rally it just had today.”
Chewy, Inc. (NYSE:CHWY) operates an online platform and it provides pet food, treats, supplies, medications, and health products.
8. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 102
Citigroup Inc. (NYSE:C) is one of the stocks Jim Cramer weighed in on. During the episode, a caller asked about the stock, and Cramer replied:
“Oh, I like Citi. Now, Citi’s up a huge amount, but I think Citi is still an inexpensive stock. It’s got still a lower multiple than others. I think it can go higher. Yields 2.4% and what can I say? Jane Fraser’s doing an admirable job there.”
Citigroup Inc. (NYSE:C) delivers financial services, including consumer banking, wealth management, investment banking, trading, treasury, and securities solutions. Hotchkis & Wiley stated the following regarding Citigroup Inc. (NYSE:C) in its second quarter 2025 investor letter:
“Citigroup Inc. (NYSE:C) is one of the largest US banks by total assets. Investment in its IT, compliance and risk capabilities have pressured margins and returns over recent years, obscuring the banks strong core franchise. With these investments now largely complete we expect Citi’s expense to decline and its margins and returns to be more consistent with peers. Citigroup performed well in the quarter on improved profitability and positive operating leverage. We think that C is very undervalued on our normal expectations and would still be attractive even if they do not fully achieve their goals.”
7. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 53
United Parcel Service, Inc. (NYSE:UPS) is one of the stocks Jim Cramer weighed in on. A caller asked about the stock and mentioned that they have held it for three years, and it has declined significantly over the past year despite offering a dividend yield of over 6%. Cramer stated:
“I am worried about United Parcel. I’ll tell you why. It’s down 33% for the year. Because when I see a yield of 7.8%, it worries me because there’s not a lot of yields in the S&P that are that high. The highest yielders tend to be troubled. They do not tend to be reasons to buy, maybe for Verizon when it was… or an ATT, because they’re utilities. But this is of grave consternation to me on UPS. I wish I could be more positive, but that’s how I feel.”
United Parcel Service, Inc. (NYSE:UPS) provides package delivery and logistics solutions, including express and ground shipping, international freight forwarding, customs brokerage, e-commerce services, and specialized supply chain management.
6. Toast, Inc. (NYSE:TOST)
Number of Hedge Fund Holders: 67
Toast, Inc. (NYSE:TOST) is one of the stocks Jim Cramer weighed in on. A caller inquired about the current situation and performance of the stock. Cramer replied:
“You know, look, I’m glad you asked about this. I actually thought the quarter was excellent. I know there are a lot of doubters. I think that’s wrong, but the restaurant stocks have been very weak, and that’s why I think that Toast has been very weak. I’m advocating patience because it’s still a great stock and it’s still up a lot for this year.”
Toast, Inc. (NYSE:TOST) provides a cloud-based platform for the restaurant industry. It offers point-of-sale systems, operations and team management tools, back-office solutions, and integrated financial technology products. When a caller inquired about the stock in a June episode, Cramer responded:
“Oh, I know that Josh likes that. Now. I like Toast too, because I was in the restaurant business. I thought it was a commodity, it’s proprietary. They’re taking out the whole world by storm. You got a good one there…”
5. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks Jim Cramer weighed in on. Cramer said that he was “totally wrong” for believing that the company was going to get an unfavorable ruling in court. He remarked:
“Look, I know the Magnificent Seven have had their setbacks. Alphabet looked like it was going to be a goner, severely punished for anti-competitive behavior not that long ago. The judge in the remedy portion of the trial, after Alphabet had already been found guilty of being a monopolist, could have easily gutted the company, which is why its stock fell as low as 140 in April. But it didn’t happen. If anything, it was real clear that Google’s remedy was to keep doing what it was doing for the most part.
Now, the stock’s at $251 and change after soaring another 4.5% today. I made the mistake of selling the stock for my Charitable Trust. I play with an open hand. I believed that the government would come down on them… I did think Alphabet’s best days were behind them because of what was going on in the federal court. I was totally wrong. Got that? I was wrong.”
Alphabet Inc. (NASDAQ:GOOGL) delivers a wide range of products and platforms, including Google’s advertising, search, YouTube, Android, Chrome, and devices, along with Google Cloud’s AI, data, and collaboration tools. The company also invests in healthcare and other emerging ventures.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer weighed in on. Cramer talked about the Chinese antitrust investigation against the company, as he commented:
“Take NVIDIA… I read that there’s a Chinese entity that says NVIDIA violated an antitrust law. The stock’s down three, then four, then five. I get fed up and I take to the X, ‘Usual Nvidia shareholder freak out on suboptimal China news. Join the club and stop panicking, will you?’ That was a reference to my own, own it, don’t trade it policy on the stock of NVIDIA. It doesn’t stop, though.
The stock just keeps going lower, even as we discovered this inquiry’s about something from NVIDIA’s acquisition of Mellanox Technologies, a division that gave NVIDIA exposure to high-performance network equipment and not core semiconductor business. That was five years ago, and the Chinese okayed it, and yet it caused pandemonium. But what happens with stocks like this? You know, by 11:50, the stock’s in the black.
You would’ve caught six points at the, if you bought at the low. More important, though, is that NVIDIA could bounce right back, even if the stock only closed slightly in the red. That’s a sign once again that so many are skittish. NVIDIA’s shareholder base is full of people who probably shouldn’t own the stock in the first place because the moment they hear about a Chinese antitrust investigation, they think they’ve overstayed their welcome and they [sell, sell, sell, sell]. That’s always how it has been with NVIDIA. Always.”
NVIDIA Corporation (NASDAQ:NVDA) provides GPUs for gaming, professional visualization, and enterprise graphics, along with cloud and AI-powered software solutions. Additionally, it delivers data center, automotive, robotics, and networking platforms supporting advanced computing and industrial applications.
3. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer weighed in on. Cramer mentioned the company while highlighting the renewed optimism around data center demand and its impact on leading tech companies. He said:
“Now, some of today’s strength in tech has, really has to do with still one more celebration of the data center. There have been lots of questions about whether the backlog is real post that Oracle news, but they have, they seem to have been resolved to the point that it is positive, and demand looks very strong. Microsoft’s Azure, Meta’s AI, NVIDIA’s chips, Tesla’s autonomous driving, Google’s Gemini, Amazon’s Web Service would all seem to be big beneficiaries of that demand, meaning that they’re probably doing so well that you see… the demand.”
Microsoft Corporation (NASDAQ:MSFT) develops software, cloud services, and devices, including Microsoft 365, Dynamics, LinkedIn, Azure, and GitHub. Moreover, the company provides Windows, Surface products, Xbox gaming, search and advertising solutions, and AI-powered tools like Copilot.
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 115
Tesla, Inc. (NASDAQ:TSLA) is one of the stocks Jim Cramer weighed in on. Cramer discussed the company CEO’s purchase of $1 billion worth of stock recently, as he stated:
“When we came up with the term FANG, which stood for, at that point, Meta, Amazon, Netflix, and then Alphabet a dozen years ago, all I heard was that the, that I was late and the best days were behind them, a dozen years ago… Something good always seems to be in the works when it comes to Mag Seven. Last Friday, Elon Musk, what’d he do? He bought a billion dollars’ worth of Tesla. I mean, come on. That’s incredible. Right in the open market. I have never seen a commitment like that, but this is the kind of insider buying you can see when your CEO is the richest man in the world.”
Tesla, Inc. (NASDAQ:TSLA) designs and sells electric vehicles along with related services, charging infrastructure, and financing options. In addition, the company develops and provides solar energy and energy storage products for residential, commercial, and industrial customers.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the stocks Jim Cramer weighed in on. Cramer talked about acquisitions by the company during the episode, and he commented:
“Facebook starts as a desktop entity with a stock that flops after it goes public. But then it figures out the cell phone for Instagram and for Facebook, and then boom. And of course, it buys Instagram and it buys WhatsApp. It became a totally different company, taking advantage of its balance sheet and its vision that billions of people want to connect via Instagram, and they were right.”
Meta Platforms, Inc. (NASDAQ:META) develops products and services including Facebook, Instagram, WhatsApp, Messenger, and Threads to connect people and businesses. The company also creates virtual, augmented, and mixed reality technologies through its Reality Labs division. Cramer mentioned the company in the September 3 episode, 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.”
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