We recently published a list of Jim Cramer Reveals Where Investors Fled During Tariff Selloff & Discusses 10 Stocks. In this article, we are going to take a look at where Shopify Inc. (NASDAQ:SHOP) stands against other stocks that Jim Cramer discusses.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed turmoil in the healthcare sector following the financial results of a major health insurer that sent the Dow index lower. Cramer speculated that had the outcome of the November 2024 US Presidential election been different, then the healthcare sector could face higher government scrutiny. Healthcare stocks were under pressure during the tail end of last year when the President (who was President-elect back then) had vowed to take on the healthcare middleman.
In December, Cramer had warned viewers not to buy the stocks of some of the largest healthcare benefits management companies. He commented:
“Look I think that if I were the people at [the benefits managers], when the President-elect decides that he is going to take a shot at you, as we know from his first time around, it’s not one off. There’s multiple shots. Multiple attempts to say listen you guys are . . . friction. I would not buy these stocks.”
However, Cramer’s concerns appeared to ‘taper off’ as the months progressed. In a February appearance following Trump’s oath-taking, the CNBC TV host wondered whether the Trump administration’s Justice Department was equipped to take on American healthcare giants. Cramer’s remarks were made in the context of hedge fund manager Bill Ackman advising against buying the stocks:
“Well, again, legislation can do something. This idea of, of creating policy through the Justice Department has not worked. The Justice Department has [inaudible] not been able to create changes. But Congress can. And that’s what has to happen. Look, do I agree with Ackman? I think, I favor universal healthcare [laughs] so I’m way off the reservation. But I do think that if Congress gets involved, as it did under, with Obamacare, they had a shot. Right at the end it was, it was destroyed by the Republican Party. But that’s, that’s what happens.”
This time around, Cramer commented on whether tighter government scrutiny of the companies’ coding practices could affect their loss ratios and drive them higher. According to him:
“Also when you mention that, because Jonathan Kanter now he’s the guy from antitrust, Justice, he was full bore United Health. Had, Harris won, I think these guys were going to be public enemy number one. They have spent so much time ready to go after UnitedHealth for being a monopolist. I will say by the way, the miss that they had on medical costs, I mean they have Optum, they’re supposed to know everything about medical costs. So this was very out of character, Carl. And also because of the weighting, it’s such a big stock, the weighting, it moves the Dow lower.”
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