Jim Cramer on Aeva Technologies (AEVA): Its Recent 'Airbus Contract That's Really Good'
On Monday, Mad Money host Jim Cramer addressed the market's reaction to the recent U.S. debt downgrade by Moody's.
'Stories like the US debt downgrade story from Friday, they are classic… Stories that scare people out of very fine stocks that could otherwise make them rich. And sure enough, when Moody's downgraded the debt of the United States on Friday, the last of the three big rating agencies to do so, the market opened hideously as the get out now crowd took action. They fled. Then the market rebounded.'
READ ALSO: Jim Cramer Put These 12 Stocks Under the Spotlight and 15 Stocks on Jim Cramer's Radar.
Cramer warned that such panic is not a one-off. He mentioned that there will be many other 'get out now' calls issued ahead. He said that the warnings often come from sources who either do not fully grasp the situation or are motivated by less transparent reasons. In his view, some are simply uninformed, while others may be experienced short sellers using fear as a tactic to move markets in their favor.
Even if the issues these fear-driven stories point to do materialize, Cramer believes they are manageable. He called out the overuse of the term 'stagflation,' often wielded by bearish commentators to provoke anxiety. He acknowledged how difficult it can be to resist the persuasive nature of such arguments. Still, he encouraged investors to stay the course as he added, 'You'll have to stick with me and we'll sit through this.'
'Let me give you the bottom line: The crucial thing that we in the media can do, and I say this as someone who talks to more individual veterans than almost anyone in the universe, and certainly more than anyone in the media, is simply cool it with the fear mongering and cut off guests who advocate it. A little history and some constructive thought would go a lot further if your goal is not to inflame, but to inform.'
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 19. We listed the stocks in ascending order of their hedge fund sentiment 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 ().
A close-up of a LiDAR-on-chip sensor mounted in a consumer-grade electronic device.
Number of Hedge Fund Holders: 11
Noting the stock's sudden decline, a caller asked about Aeva Technologies, Inc. (NASDAQ:AEVA). Here's what Cramer had to say:
'Yeah, they got an Airbus contract that's really good. And I gotta tell you, I think that what's happened there is people got it. You had to be in it beforehand. Now you're too late. I have to move on. We'll find the next one.'
Aeva (NASDAQ:AEVA) develops advanced LiDAR sensing systems and software using frequency modulated continuous wave technology (FMCW), offering high-performance 4D LiDAR solutions for automotive, industrial, consumer, and security applications.
On May 15, Roth Capital raised AEVA's price target to $17 from $6, after the company reported better-than-expected revenue and a strong outlook for 2025. The firm expressed confidence in Aeva's (NASDAQ:AEVA) momentum as it begins shipping its 4D FMCW lidar products and expands across major markets.
Overall, AEVA ranks 13th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of AEVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AEVA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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