We recently compiled a list of the 10 Important Stocks that Jim Cramer is Talking About. In this article, we are going to take a look at where Adobe Inc. (NASDAQ:ADBE) stands against the other important stocks that Jim Cramer is talking about.
Jim Cramer in a latest program talked about the latest market volatility and said using too many AI algorithms, data points and correlations could be useful for short-term traders but for investors, these tools could blur your long-term vision.
“I think as investors we’re putting on mental shackles if we behave like this. Remember back in my hedge fund, our whole goal was day trading, was to scalp pennies from the flow. That’s a lot of risk for not much reward. It’s better to zero in on dollars for the big picture. That’s what I want you to do.”
Jim Cramer said that the market is currently oversold and this happened twice before in 2024. These moments, according to Cramer, proved to be some of the best entry points to pile into stocks in hindsight.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article we watched Jim Cramer’s recent programs and listed some of the stocks he commented on. For these stocks, we also mentioned the number of hedge fund investors. 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 (NASDAQ:ADBE)
Number of Hedge Fund Investors: 123
Jim Cramer said the following about Adobe in a latest program while discussing the impact of Donald Trump’s victory in the election on stocks:
“Trump’s pro-Business attitude won’t matter every day. There’s no way the president can expand the gross margins for Adobe Inc (NASDAQ:ADBE) or tell you to ignore the guidance for the next quarter, which was perceptibly weaker. This sent the stock down 75 points or 13%. If either ask for lower prices to compete or come up with something that makes it clearly superior to its rivals, no amount of presidential optimism is going to fix that.”
Parnassus Core Equity Fund stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:
“Also in the Information Technology sector, we exited a position in Adobe Inc. (NASDAQ:ADBE) and initiated a new one in Synopsys. Adobe is contending with market cyclicality, rising competition and lofty AI monetization expectations that are unlikely to be met in the near term. We sold Adobe for Synopsys, which faces fewer competitive threats and has room to grow as companies adopt Synopsys software for custom semiconductor design.”
Overall, ADBE ranks 4th on our list of the important stocks that Jim Cramer is talking about. While we acknowledge the potential of ADBE, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.