We recently published a list of Jim Cramer Highlighted 12 Stocks and Tariff Panic. In this article, we are going to take a look at where Warner Bros. Discovery, Inc. (NASDAQ:WBD) stands against other stocks that Jim Cramer highlighted.
On Monday, Jim Cramer, the host of Mad Money, discussed the current market and he identified opportunities for investors amid the volatility.
“Alright, there’s always a bull market somewhere. I end the show with that tagline every night. I say it because it’s true. Look at today, the market looked hideous this morning, right on the heels of some horrific overnight futures action. But after the S&P 500 reached a level where it was down 10% from its highs. where it held last time, we started snapping back.”
Cramer suggested that the market’s swift recovery might be a result of an overly negative sentiment among investors. He theorized that the S&P 500’s brief drop to the 10% mark could have triggered some buying activity as traders took advantage of the lower prices, possibly fueled by end-of-quarter retirement contributions. The selling pressure, he pointed out, seemed to dissipate, which could have allowed for a bounce in the market. However, Cramer cautioned that the movement was not just coincidental. It appeared to challenge the narrative that the economy was heading toward a stagflation scenario due to tariff-induced inflation.
Cramer suggested that investor exhaustion over the current administration’s unpredictability is a significant factor in the market’s volatility. Cramer remarked that many investors are uncertain about what actions the president might take next, which has created a climate of fear and hesitation in the market. He noted that the bears had dominated the quarter, with a gloomy outlook prevailing throughout, which leaves little room for optimism. Yet, Cramer hinted that it might be shifting. He wondered if the negativity had simply reached a tipping point, which resulted in a shift in market dynamics.
Cramer highlighted the mixed economic signals contributing to the market’s turbulence. While inflation was on the decline, the president’s tariffs were adding inflationary pressure. Unemployment was at historically low levels, yet certain policies from the administration had caused uncertainty and disruption. Cramer noted how the market had been performing well last year before political instability introduced a level of uncertainty that he had not seen since the Carter administration.
“Bottom line: Maybe Wednesday is the liberation day. It’s just the day when American investors may be finally liberated from the president’s not-so-pro-business attitude once he gets the tariffs out of the way.”
For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 31. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Warner Bros. Discovery (WBD) Rallies as Cable TV Triumphs – Jim Cramer Calls It a ‘Big, Big Winner!’
A movie theater auditorium filled with an audience enjoying a blockbuster film.
Number of Hedge Fund Holders: 64
Discussing the possibility of cable TV offering better value, Cramer pointed out Warner Bros. Discovery, Inc. (NASDAQ:WBD) and said:
“Talk about strange leadership, an outfit called CouponCabin has put out a survey showing that cord cutting may finally be cooling. Now that ignited the stocks of Fox and Warner Brothers Discovery, big win. Big, big winners. The reason? Rising prices for streaming services means that cable TV is a better value. Makes sense and of course, there’s no tariff exposure. See the theme?”
Warner Bros. Discovery (NASDAQ:WBD) is a media and entertainment company. It produces and distributes films, TV shows, and streaming services. The company offers a broad range of content on different platforms. Longleaf Partners Fund stated the following regarding the company in its Q4 2024 investor letter:
“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate WBD was a detractor in the quarter and the year. We exited our position during the quarter to reallocate capital to opportunities with stronger qualitative and quantitative characteristics. In retrospect, WBD represents an error of commission as noted above. Our original thesis did not fully account for the company’s leverage and growth challenges in its linear TV and studio businesses. Adding insult to injury, the stock price has gone up since our exit, fueled by rumours of a potential linear TV business deal with Comcast. While this development offers some validation of WBD’s strategic assets, it is tempered by significant insider selling following the recent stock price increase. Time will tell if our decision to sell was the right one, but our focus remains on seeking investments that are growing and on offense.”
Overall, WBD ranks 8th on our list of stocks that Jim Cramer highlighted. While we acknowledge the potential of WBD, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WBD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
