Lightning Round: Recursion Pharma is now a meme stock, says Jim Cramer

Key Concepts

• Parabolic Move: A rapid and steep price increase in a stock, often unsustainable.
• Meme Stock: A stock that gains popularity and experiences significant price volatility due to social media hype rather than fundamental value.
• Equity Offer: The issuance of new shares by a company to raise capital.
• AI-Driven Drug Discovery: The use of artificial intelligence to accelerate and improve the process of finding new drugs.
• Sluggish Sales: Slow or declining sales performance for a company.
• IPO (Initial Public Offering): The first time a company offers its stock for sale to the public.
• EV (Electric Vehicle): A vehicle powered by electricity.

Stock Analysis and Investment Advice

This segment features a "lightning round" of stock inquiries from callers, with the host providing rapid-fire analysis and recommendations.

David in New Jersey: Hot Eight

• Inquiry: David asks if "Hot Eight" is a long-term hold because it's currently making money.
• Host's Perspective: The host acknowledges that "Hot Eight" is making money but expresses concern about its "parabolic move." He states that parabolic moves are "very, very suspect" and advises to "ring the register on time," implying a recommendation to sell or take profits.

Jacob in Alaska: Recursion Pharmaceuticals

• Inquiry: Jacob seeks the host's opinion on Recursion Pharmaceuticals, an Nvidia-backed AI play in drug discovery, questioning if it lives up to the hype or is too speculative.
• Host's Perspective: The host recalls Recursion Pharmaceuticals' equity offer at $9-10, after which the stock was "clobbered." He labels it a "meme stock" and predicts that meme stocks tend to rise daily due to adoption by those who want to "take it higher." He notes seeing buying activity early in the morning, suggesting speculative interest.

Suzanne in Pennsylvania: LWGO

• Inquiry: Suzanne asks about LWGO.
• Host's Perspective: The host is highly critical of LWGO, stating it has "almost no revenues" and "has never really done anything." He unequivocally advises, "I'm going to have to say no. I'm going to have to say if you own it, I want you to sell it." He reiterates, "They have nothing. No sales, nothing. I can't recommend it."

Ryan in Oregon: Salty Snack King (Oats)

• Inquiry: Ryan, who has been invested since the 2020 IPO, asks for advice on "Salty Snack King" (implied to be Oats, a potato chip company), which is down 20% this year due to "sluggish sales."
• Host's Perspective: The host finds the potato chip and snack business "really hard to own" and "one tough business." He recalls the company being featured in "Mad Men." Despite the challenges, he expresses hope that the company will "get a bid" and notes that "they make money." His recommendation is, "I would not sell the stock. It's too low here."

Brandon in Massachusetts: Nio (Chinese EV Maker)

• Inquiry: Brandon, who has been buying and holding a stock since its 2018 IPO, asks for a perspective on the industry and the stock. He mentions a "really strong future outlook," a 60% year-to-date gain, and an expected profit by the end of the year or early next year. His mother advised him to buy it. The stock is identified as Nio, a Chinese EV maker.
• Host's Perspective: The host acknowledges Nio's performance but offers a cautious outlook. He states, "Look, he probably goes to ten and then you have to sell it, okay." This suggests a target price or a point at which he would recommend selling, implying a belief that further significant gains might be limited or that a sell-off could occur after reaching a certain level.

Conclusion

The lightning round segment highlights the host's direct and often blunt investment advice, focusing on immediate concerns like parabolic moves, lack of fundamentals, and speculative interest. He differentiates between companies with solid (though challenging) businesses and those with no discernible revenue or value. For meme stocks and speculative plays, he advises caution and profit-taking. For established companies facing headwinds, he suggests holding if the valuation is low and the company has a path to profitability or potential acquisition. The segment concludes with a clear indication that the lightning round has ended.