We recently compiled a list of the Jim Cramer Looked At These 7 Stocks Recently.In this article, we are going to take a look at where Adobe Inc. (NASDAQ:ADBE) stands against the other stocks Jim Cramer recently looked at.
On Mad Money, Jim Cramer recently delved into the impact of previous President Joe Biden’s policies on the stock market, raising a question that has been on the minds of many executives: Did the market perform well because of the administration, or in spite of it?
According to Cramer, one clear example of success despite the prior president’s policies can be seen in the oil sector. He pointed out that oil performed well even though Biden, who was vocal about his opposition to fossil fuels, is not a supporter of traditional energy sources.
Cramer remarked that he himself had pushed back on the notion that the oil industry was doing poorly under Biden when speaking with oil executives. He noted that while the stocks of these companies had done reasonably well, the underlying issue was that there had been no meaningful communication between the president and fossil fuel industry leaders.
Cramer explained that Biden, who was a staunch advocate for renewable energy, essentially ignored dialogue with the oil sector, leaving executives without a chance to discuss their concerns.
“The oil company CEOs that I know wanted to plead their case, play ball, but they never got a chance. Instead, they got a kick in the teeth though almost one year ago when the president crushed the most viable portion of the complex, the liquified natural gas market, by putting a pause on new export decisions pending environmental review.”
Cramer also pointed to another major sector that saw gains in spite of the president’s policies: the banking industry. He shared that during his conversations with various bank CEOs, many of them took the opportunity to criticize the Biden administration, especially in terms of its tone and approach. While the banks performed well under Biden, Cramer noted that much of this success was despite the administration’s handling of financial regulations.
He explained that the lack of communication between the government and the business world had created an environment where many companies were hesitant to pursue mergers and acquisitions, which would have been profitable for shareholders. Instead of fostering productive discussions, the administration's approach seemed to be to litigate first, without ever attempting to engage in meaningful dialogue. Cramer added:
“It had a very successful chilling effect on doing new deals, many of which would've made shareholders like you a great deal of money... The bankers wanted some degree of transparency about the new regulations that intruded endlessly on what they were doing. They wanted some sense of the real capital levels that the government wanted to see and they wanted a seat at the table when the president discussed business. Didn't happen.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on January 17. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Adobe Inc. (ADBE): Revolutionizing Content Creation with AI-Powered Tools
A team of engineers and scientists collaborating at a workstation surrounded by their applications and solutions.
During the episode, Cramer said to buy Adobe Inc. (NASDAQ:ADBE) as the stock has come down significantly.
“Adobe, okay. Now, I think Adobe has come so far down that it's just, I think I'm gonna call it a buy. I may look back, I may be criticized, people may think, what the hell is he talking about? But Adobe… I want to own some Adobe.”
Adobe Inc. (NASDAQ:ADBE) is a leading software company recognized for its diverse offerings, especially in the areas of digital media creation and document management. In December 2024, Cramer commented:
“As I mentioned earlier, the enterprise software stocks have been roaring, reacting very positively to pretty much everything these days. So maybe we should start thinking about buying the stock of Adobe, which has some of the very best software to help businesses with marketing and web design. I like this company very much, but it’s been stuck in enterprise software purgatory. Not anymore. Maybe it has a real run by just delivering good numbers.”
Overall ADBE ranks 1st on our list of the stocks Jim Cramer recently looked at. While we acknowledge the potential of ADBE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ADBE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
