Cramer on Stock Market Fluctuations
Jim Cramer from CNBC noted that while a sharp decline in stocks can be tough for investors, it may also present opportunities for those willing to set aside fear and focus on the fundamentals.
“Tailspins can be very nasty,” Cramer remarked during Tuesday’s “Mad Money” segment. “It’s tough to hold onto a stock when it’s in turmoil. Still, sometimes the market is just plain wrong, and it can be worth hanging in through the rough patches.”
Following a day when major U.S. stock averages dropped about 0.6%, Cramer highlighted several previously dismissed stocks that managed to rebound strongly.
For instance, CrowdStrike experienced a significant stock price drop in 2024 due to a problematic software update that impacted millions of Microsoft systems globally, resulting in investors fearing lasting reputational harm. Within a month, its stock lost over a third of its value.
However, by the end of 2024, the stock recovered and even surpassed its previous levels, according to Cramer. This trend continued until late 2025 when worries arose about new competition from AI companies, heightened by Anthropic promoting its new Mythos model which it claimed was effective in identifying software vulnerabilities.
Cramer contended that those who claim AI will substitute cybersecurity firms are wrong. Instead of replacing these companies, AI might actually lead to increased spending on security. This sentiment gained traction after KeyBanc upgraded CrowdStrike’s rating to a buy, leading to a 3.8% rise in its stock price, even amidst broader market struggles.
“AI and humanity have not posed challenges for cybersecurity,” Cramer stated. “It’s been beneficial.”
A similar scenario unfolded with Microsoft. After reaching an intraday peak of over $555 in late July, the stock dipped to $356 by late March, largely due to skepticism about the company’s AI initiatives and general software demand.
Even with this negative outlook, Cramer insisted that Microsoft’s core strengths, including its Azure cloud services and leading software franchises, remain solid. A recent positive note from Citi about strong demand helped lift the stock, which closed at $424.16 on Tuesday.
“I’m relieved I didn’t have to sell,” he reflected about holding onto the tech giant’s stock through the years. “It could have been a big mistake.”
Cramer also discussed Blackstone, which faced pressure due to worries about its private credit exposure and the impact of a downturn in software investments. The stock dropped from around $130 to nearly $100, but then quickly bounced back when the worst fears didn’t materialize. It closed at $128.50 but reached $133.25 during trading.
“There were too many short sellers, not too many failures,” Cramer explained, referring to the stock’s swift recovery.
UnitedHealth Group provides another case in point. Cramer noted that its stock plummeted last year amid challenges faced by insurance companies, including rising medical costs and management issues. However, the return of former CEO Stephen Hemsley in May 2025 helped restore trust. UnitedHealth then reported earnings that Cramer described as “the first of many pleasant surprises.”
All these situations highlight the need for “trust in management, faith in the model, confidence in the balance sheet, and belief in the comeback,” Cramer stated.
He acknowledged that not every struggling stock will recover but emphasized that investors who can tell the difference between a flawed story and a flawed business often reap rewards in the long run.
“In a few months, the skeptics will wonder, ‘What were we thinking?'” he predicted. “And what’s the answer? I let fear get the better of me.”
