We recently compiled a list of the Jim Cramer Talked About These 8 Stocks. In this article, we are going to take a look at where Oracle Corporation (NYSE:ORCL) stands against the other stocks Jim Cramer talked about.
Jim Cramer, host of Mad Money, recently shared some investment wisdom drawn from his four decades of experience. One of the key lessons he emphasized during the show was the importance of discipline in investing. Cramer was firm on this principle, saying that no matter how much someone may love a stock or be captivated by its story, if the rules dictate that it’s time to sell, then it’s time to sell. He reminded his audience that discipline is more important than sheer conviction when it comes to managing investments.
“We’re gonna start with the first one, which is bulls make money. Bears make money. Pigs, well, they get slaughtered. Look, I say this all the time… because so often in my business, I’ve seen moments where stocks went up and up and up so much that people were intoxicated with their gains… However, it’s precisely at that point of intoxication that you need to remind yourself that you don’t want to act like a pig.”
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Cramer also stressed that one of the toughest aspects of investing is simply enduring the ups and downs of the market.
“You know that’s the hardest part of investing. It’s holding on through the difficult periods, taking short-term pains so you can have long-term gains, which is what’s happened in the stock market for a century.”
The next rule Cramer shared revolves around the fear of paying taxes on stock market gains. He pointed out that many investors develop a near-obsessive aversion to paying taxes and often avoid taking profits because they don’t want to incur tax liabilities. However, Cramer argued that it’s perfectly okay to pay taxes if it means securing gains.
Lastly, Cramer advised against buying or selling a stock all at once. He recommended spreading purchases over time in stages, as this approach accounts for the potential fallibility of judgment and helps secure the best price.
“… My next commandment and this is a really important one. Never buy all at once. I can’t stress it enough. Do not, under any circumstances, buy your whole position at once… and you should never sell all at once. Instead, I need you to stage your buys, work your orders, try to get the best price over time.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episodes of Mad Money. 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).
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Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 91
Discussing Oracle Corporation (NYSE:ORCL), Cramer said:
“Okay, remember, we don’t care where [the] stock has come from, we care where it’s going to. Unfortunately, I do think after that last quarter, the stocks that do not make the quarter are being punished here and will continue to be punished until we get better news. So Oracle does go lower in my opinion.”
Oracle (NYSE:ORCL) is a global technology company that offers a comprehensive range of enterprise IT solutions. However, it faced challenges in its fiscal 2025 second-quarter results, which caused its stock to decline. The company reported results that fell short of analyst expectations and provided more cautious guidance moving forward. Despite this, the company’s cloud infrastructure business continues to show strong growth.
In the second quarter of fiscal 2025, the company reported a significant 336% increase in GPU usage compared to the previous year. This surge highlights the growing demand for artificial intelligence infrastructure. The company has plans to build an additional 1,000 to 2,000 data centers over the long term.
During the quarter, Oracle (NYSE:ORCL) unveiled its largest-ever supercomputer, equipped with 65,000 Nvidia GPUs. It is noteworthy that the company has significantly increased its capital expenditures, which rose to $4 billion in fiscal Q2 from $2.3 billion in fiscal Q1. However, the company also faced some financial challenges. It reported an operating cash flow of just $1.3 billion and experienced a negative free cash flow of $2.7 billion.
Overall ORCL ranks 2nd on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of ORCL 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 ORCL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.