On Tuesday’s episode of Mad Money, host Jim Cramer expressed concern over how President Donald Trump’s actions have been impacting the stock market as he pointed out the confusion they create among investors and the encouragement they seem to offer short sellers.
“This market is struggling with something real basic. It’s just not doing a good job of valuing stocks, which is exactly what a market’s supposed to do.”
READ ALSO: Jim Cramer Talked About These 16 Stocks Recently and Jim Cramer’s Game Plan: 9 Stocks in Focus.
Cramer argued that the market has consistently been mispricing companies, and the ongoing misjudgment has only added to investors’ frustration. He said that the current climate is one where people are increasingly losing trust in the market’s ability to do its job properly. He added:
“When you examine the market’s mistakes, they share a common theme: The president’s distorting pretty much everything, especially with his tariffs and his jingoistic approach to the rest of the world, and it’s continually confounding traders and investors alike.”
It has led to a situation where many traders would rather bet against stocks than take long positions as they expect the market to decline on a near-daily basis. He even remarked that Trump has almost single-handedly brought short selling back into fashion and revived a strategy that profits from falling stock prices.
“The bottom line: These short sellers, they’ve grown way too confident, and today we found out they can lose big because lots of businesses are doing great. It’s just that Wall Street only notices on days when the White House doesn’t take up too much bandwidth. Oh, and thank you, Secretary Bessent, for your measured cerebral approach. I actually find that a breath of constructive fresh air, and your demeanor is duly noted right here every day that you represent the White House.”
Our Methodology
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on June 3. We listed the stocks in ascending order of their hedge fund sentiment 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’s Thoughts on These 12 Stocks
12. Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR)
Number of Hedge Fund Holders: 27
When a caller inquired about Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR), Cramer said:
“You know, look, it doesn’t make any money. I’ve been waiting for it to do something, break out. I just don’t know if it has the horses.”
Arrowhead Pharmaceuticals (NASDAQ:ARWR) develops RNA-based treatments for a wide range of hard-to-treat diseases, with multiple drug candidates in clinical trials targeting conditions such as cardiovascular disorders, liver disease, pulmonary illness, and rare genetic disorders. Additionally, in 2019, Cramer said the following about the company:
“I looked at Arrowhead recently and I didn’t see that much. You know, everyone’s so excited about it. I don’t get that. I have been saying that it’s absolutely O.K. to own stocks that have to do with slicing and dicing and genes, but I’m not gonna endorse it for anything other than speculation.”
For context, since the above comment was aired, Arrowhead Pharmaceuticals (NASDAQ:ARWR) stock declined more than 75%.
11. GoodRx Holdings, Inc. (NASDAQ:GDRX)
Number of Hedge Fund Holders: 30
Noting that Cramer has not said anything about GoodRx Holdings, Inc. (NASDAQ:GDRX) in a long time, a caller asked about the company. In response, Cramer said:
“Sometimes, like my Nana Mary said, if you don’t have anything good to say about someone, don’t say it at all.”
GoodRx (NASDAQ:GDRX) provides tools that help people find lower prices on prescription drugs, along with subscriptions, telehealth services, and healthcare solutions for both humans and pets. In 2022, when a caller asked about the company during a lightning round, Cramer said, “These are all no-go. They’re in a no-fly zone. You’ve just got to look at it like that.” For context, GDRX stock has gone down more than 82% since the comment was aired.
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