Jim Cramer Reassesses 16 Stocks Amid Market Concerns

Jim Cramer, the host of *Mad Money*, expressed significant concerns regarding multiple stocks during a recent episode aired on November 13. Cramer noted that a rise in insider selling across various companies reminds him of the turbulent dot-com era. He stated, “Somebody has to pay the bad guy. Might as well be me,” indicating his cautious stance on speculative stocks linked to data centers and artificial intelligence (AI).

Cramer highlighted that over the past couple of months, he has grown increasingly wary of companies showing signs of insider selling, secondary offerings, and heavy borrowing without solid revenue. Initially optimistic about 2025 becoming a “year of magical investing,” he has since declared that phase over, describing the previous week as “a hideous day” for tech stocks associated with data centers and AI.

He underscored that capital is either being sidelined or shifting toward high-growth areas outside technology. Cramer remains interested in AI companies that demonstrate profitability but recognizes the signs of a market frenzy. “This one feels like it’s starting to unwind,” he remarked, suggesting that caution is warranted.

In the episode, Cramer presented a list of 16 stocks and offered his insights on each, reflecting a mix of optimism and caution.

Stocks Under Review

Lam Research Corporation (NASDAQ:LRCX) topped the list with Cramer emphasizing its superiority over competitors, despite expected short-term declines due to performance issues from Applied Materials. He advised viewers to consider purchasing Lam Research on dips.

Next, he addressed Conagra Brands, Inc. (NYSE:CAG), expressing skepticism about its long-term viability due to stagnant revenue. He cautioned against investing in companies with flat growth, stating, “I do not invest in companies that have flat revenues for multiple years.”

Cramer also evaluated CarMax, Inc. (NYSE:KMX), criticizing its recent performance, which saw a significant drop of 20% due to disappointing sales results. He mentioned that customers need lower auto loan rates to stimulate sales, hinting at a broader issue in the used car market.

Another company discussed was ServiceNow, Inc. (NYSE:NOW), which Cramer endorsed for long-term investments. He praised its fundamentals and noted a substantial revenue growth of 22%, despite a broader downturn in enterprise software stocks.

Coterra Energy Inc. (NYSE:CTRA) drew Cramer’s attention for its mixed quarterly results but positive production forecasts. He remarked on the company’s resilience in a challenging market, particularly in natural gas production.

As the segment progressed, Cramer touched on Hertz Global Holdings, Inc. (NASDAQ:HTZ), where he acknowledged the speculative nature of the stock. He advised viewers to remain vigilant, particularly in the current market climate.

The discussion also included The Walt Disney Company (NYSE:DIS), which faced a decline of nearly 8% following its most recent earnings report. Cramer characterized the market reaction as extreme, despite what he described as a reasonable overall performance.

Finally, Cramer brought to light the struggles of Bitdeer Technologies Group (NASDAQ:BTDR), which he likened to the dot-com bust. He described the significant drop in the company’s stock price due to financing efforts to pay down debt, emphasizing the risks associated with investments in companies that fail to establish profitability.

Implications for Investors

Cramer’s recent evaluations highlight a shifting sentiment in the market, particularly within the tech and speculative sectors. His commentary serves as a reminder for investors to remain cautious and informed, especially when considering stocks that exhibit signs of volatility or declining fundamentals.

This careful reassessment of the stock market landscape, paired with Cramer’s insights, may guide investors as they navigate potential pitfalls and opportunities in the coming months. As he aptly noted, “At this point, there’s more than one nail in the coffin of the year of magical investing.”

In conclusion, the episode encapsulates a broader concern for the future of tech investments and the need for vigilance in a fluctuating market.