We have recently released a compilation of Jim Cramer Discusses These 11 Stocks & Remarks on Misunderstood Tariffs. In this article, we will examine how MicroStrategy Incorporated (NASDAQ:MSTR) compares to other stocks mentioned by Jim Cramer.
During a recent segment on CNBC’s Squawk on the Street, Jim Cramer shared his insights on the markets concluding yet another tumultuous week marked by a staggering $4 trillion selloff in the flagship S&P since the post-election week began. He pointed out that one of the factors contributing to the week’s unrest was the President “creating pain” while simultaneously expressing remorse about it. Cramer characterized Trump’s behavior as gratuitous, asserting that the President’s remarks had hindered the stock market’s upward momentum.
Cramer stated that Trump “reversed stocks that had been rising.” He disclosed that he is “still trying to understand where the playbook is leading us,” referring to the President’s statements regarding the economy and the stock market. Following this, co-host Carl Quintanilla inquired about the speculation that the President was attempting to suppress the bond market but to little effect. In response, Cramer expressed:
“Well, I mean we had that auction yesterday, which didn’t go well. People are quite on edge, but it’s not a ‘flight to quality’ type of unease. It’s more of a shift towards cash. The notion of flight to quality suggests there’s a portion of the curve you want to be on. In my time as a hedge fund manager, moments like these would see you flocking to 30-day securities. We seem to be returning to that mindset because it feels secure—safeguarded from the President’s influence. I find the President to be an intriguing figure, yet I’ve never believed we were in a situation demanding a downturn in stocks. When I was close to President Biden, I’d often see him on the train in Washington. He never concerned himself with stock prices, unlike the current President, who appears to be lowering them intentionally—creating a sale. I’ve never witnessed such a mandated discount before; no one expected him to respond to an impulsive tweet like that.”
Cramer speculated about who might be advising the President on his social media activity. Switching topics, he asserted that “we need steel to remain a competitive industry,” especially given the struggles with steel prices in 2024. He has previously noted that a significant factor behind the declining steel prices is the influx of inexpensive Chinese steel into the U.S. market via Mexico, urging the President to take action to stabilize the situation.
He also shared his views on the President’s recent tariffs on high-end alcoholic beverages:
“I mean the average citizen in this nation, regardless of political affiliation, is struggling to grasp the implications of imposing a hefty tariff on champagne. What does it mean other than, ‘Well, there goes champagne’? There’s a lack of context and understanding. There’s no resource for people to navigate this. Everyone is left to figure it out individually. So what does a tariff translate to? It means higher prices for products like Pernod, Pernod Ricard, and Campari. Many people are clueless about the implications. I work in the liquor industry, and even I find it perplexing.”
To compile our list of stocks that Jim Cramer touched upon, we cataloged the stocks he highlighted during CNBC’s Squawk on the Street broadcast on March 14th.
For these stocks, we also indicated the number of hedge fund investors. Why focus on the stocks that attract hedge fund interest? Simply put, our analysis indicates that we can excel in the market by mirroring the top picks of leading hedge funds. Our quarterly newsletter implements a strategy that selects 14 small-cap and large-cap stocks every quarter, boasting a 373.4% return since May 2014 and exceeding its benchmark by 218 percentage points (find more details here).
Jim Cramer on MicroStrategy (MSTR): ‘A Bitcoin Proxy That’s Hard to Figure Out’
A software engineer collaborating with a remote team on a project while wearing a headset.
Number of Hedge Fund Holders In Q4 2024: 44
MicroStrategy Incorporated (NASDAQ:MSTR) is a firm specializing in enterprise data analytics, known for its popularity within the cryptocurrency community. The company has significantly increased its Bitcoin holdings, leading Cramer to suggest that the shares of MicroStrategy Incorporated (NASDAQ:MSTR) have also served as a proxy for Bitcoin prices. Despite both being down in the year-to-date, Bitcoin has outperformed the shares in losses, which is expected given that MicroStrategy Incorporated (NASDAQ:MSTR) has solid business fundamentals backing its valuation. Here are Cramer’s latest remarks regarding the company:
“It’s extremely challenging to understand which Bitcoin is rising and what drives its price. Many believe that Michael Saylor is overextending himself, especially with the new ETF and the discussions surrounding tether. They’ve really crossed a line with this…”
Overall, MSTR holds the 7th position on our list of stocks discussed by Jim Cramer. While we recognize the investment potential of MSTR, we believe that certain AI stocks present an even better opportunity for higher returns in a shorter timeframe. If you’re in the market for an AI stock with more potential than MSTR that trades at under 5 times its earnings, take a look at our report on the most affordable AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
