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Was Jim Cramer Right About Goldman Sachs Group (gs)?
We recently published a list of Did Jim Cramer Hit or Miss On These 13 Stock Predictions? In this article, we are going to take a look at where The Goldman Sachs Group, Inc. (NYSE:GS) stands against other stocks that Jim Cramer discussed during the episode of Mad Money on May 1st, 2024.
During the Mad Money episode which aired on Tuesday, Jim Cramer discussed how stock ownership is viewed in the United States, saying:
“Alright, look, lately, we can’t go a day without hearing some widespread misperceptions about stock ownership. I gotta tell you, I think it’s infuriating. Here we are celebrating the 20th anniversary of Mad Money, dedicated to the proposition that you can potentially make lots of money by picking individual stocks, yet I keep hearing that most Americans don’t care about the stock market, and this direction means nothing.”
READ ALSO: How Did Jim Cramer’s 12 Bold Predictions Play Out? and Did Jim Cramer Nail All These 9 Stock Predictions?
Jim Cramer challenged the idea that the stock market only serves the wealthy, calling it a flawed and dismissive perspective that overlooks the financial involvement of millions of ordinary Americans, saying:
“It’s the whole reason anyone watches the darn show, and it generally matters, not just to the rich, but to tens of millions of regular people, home gamers, and never let any politician tell you otherwise. […] More than 60% of Americans have some exposure to the market, either directly or indirectly. 70 million people have active 401Ks. Millions more have retired with them. 60 million people have IRAs. Only 156 million people voted in November. I mean, we’re talking half the electorate here.”
Cramer argued that stockholders make up a major segment of the population and should not be ignored. He stated, “It’s not just arrogant, rich people who own stocks.” He also criticized affluent individuals who caution others against investing in stocks while continuing to benefit from their tax advantages. As he put it:
“Now look, stocks are ridiculously tax advantaged, more than just rich people want that. In a world where probably no more than 10% of this country can retire on their paycheck savings, stocks represent a different kind of social security, a one-sided pack where people try to save and the government dismisses them.”
Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money on May 1st, 2024. We then calculated their performance from May 1st, 2024, market close to April 30th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
Please note that this article mentions Jim Cramer’s previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out.
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).
The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 81
The Goldman Sachs Group, Inc. (NYSE:GS), the investment banking powerhouse, was the focus of a technical analysis segment where Cramer and Dan Fitzpatrick made the case for more upside after a strong earnings report. Here’s what Jim Cramer said at the time:
“Goldman Sachs hit a new all-time high today and the stock stands poised to go a lot higher. It certainly doesn’t hurt that Goldman reported a great quarter a couple of weeks ago with capital markets activity making a big comeback. You know we have a lot of IPOs these days. These guys were able to make a lot of money even when IPOs and equity offerings and mergers had dried up; all key revenue sources. So you can only imagine how profitable Goldman’s going to get now these areas have started turning around. […] Goldman gives you more exposure to the resurrection of the investment banking business but it’s also back once again emphasizing the wealthy client advisory business. […]
Fitzpatrick points out that Goldman stock has been in a basing pattern for two and a half years. It’s just stuck in an admittedly broad trading range basically drifting sideways. […] According to Fitzpatrick that’s a good thing though because well, this is what it looks like when a stock builds a base and eventually that base can turn into a trampoline. You reach a point where anybody who was going to sell at the high end of the range has already sold so once buyers start getting really interested then the stock can soar.”
Cramer’s analysis was spot on, as the financials giant soared by 29.72% since then.
The Mad Money host keeps advocating for Goldman Sachs Group, Inc. (NYSE:GS). Here’s what he said on April 23:
“… My Charitable Trust owns Goldman. When I’ve seen Goldman this cheap and I know how good they are, worked there at one time, I gotta tell you, I think Goldman, at 11.8 times earnings, is the way to go.”
Overall, GS ranks 3rd on our list of stocks that Jim Cramer discussed during the episode of Mad Money on May 1st, 2024. While we acknowledge the potential of GS as an investment, our conviction lies in the belief that some 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 GS but that trades at less than 5 times its earnings, 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.
