CNBC’S “Mad Money” host Jim Cramer has spotlighted “cult stocks” as a key focus for investors in 2025, emphasizing their potential to outperform traditional valuation metrics due to strong investor loyalty.
What Happened: Cramer pointed to Tesla Inc. TSLA as a standout example, noting its impressive 86% increase this year. He attributed this growth to Elon Musk‘s leadership in the electric vehicle sector and strategic political alliances, CNBC reported on Monday.
Cramer also highlighted Netflix Inc. NFLX and Palantir Technologies Inc. PLTR as cult stocks. Netflix saw an 89% rise, driven by popular programming and a new ad-supported tier. Meanwhile, Palantir’s stock soared 341%, propelled by CEO Alex Karp‘s distinctive strategy, despite initial investor skepticism.
He emphasized the importance of recognizing when traditional valuation methods might not apply, urging investors to identify similar opportunities in 2025 to maximize their potential returns.
Why It Matters: The focus on cult stocks comes amid broader market trends. Dan Ives of Wedbush Securities recently predicted a significant expansion in the tech sector, driven by artificial intelligence and deregulation under the incoming Trump administration. Ives forecasts the Nasdaq could hit 25,000 within 18 months, describing the scenario as ideal for tech companies.
In addition, Netflix’s strategic moves have been noted by analysts, with Oppenheimer’s Jason Helfstein calling it the “only investable” media stock. He projects a significant boost from live events, including NFL games, further supporting Cramer’s view on the potential of cult stocks.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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