Jim Cramer Says Buy Starbucks (SBUX) at $83: “I Have So Much Faith in Brian Niccol”

Insider Monkey
18 Apr

We recently published a list of 12 Stocks on Jim Cramer’s Radar Recently. In this article, we are going to take a look at where Starbucks Corporation (NASDAQ:SBUX) stands against other stocks that on Jim Cramer’s radar recently.

On Tuesday, Jim Cramer, host of Mad Money, criticized the market’s reaction, or lack thereof, to the recent dip in long-term interest rates. He pointed out that the 10-year Treasury yield had fallen back to 4.3%, yet barely anyone took notice. “Maybe, just maybe, it’s no big deal,” he said.

“Long-term interest rates plunged today, but did you hear a word about it? Nobody paid any attention to the interest rate decline. I never heard anyone talk about it, especially the very people who kept warning that ever higher rates were signaling that our financial system was in real trouble.”

READ ALSO Jim Cramer Discussed These 12 Stocks Recently and Jim Cramer is Bullish on These 10 Stocks

Cramer said that the same voices who claimed that higher rates were indicative of a collapsing faith in the U.S. economy, a threat to the dollar’s reserve currency status, and harbingers of hyperinflation or stagflation suddenly had nothing to say now that rates were moving in the opposite direction.

He quipped, “Let’s get some ex-Federal Reserve people or even some live ones to tell us that the party’s over.”  He called out what he sees as an eagerness among some to spread gloom whenever it suits their narrative. When the rates drop, he noted, the reaction is indifference. He added:

“That’s how this issue’s been covered for ages, but it’s only gotten worse since Trump has sworn in.”

Cramer acknowledged the seriousness of the United States’ $36 trillion national debt and said he does not blame people for being concerned about Treasury yields. However, he insisted that if people are going to sound the alarm when yields rise, they should at least acknowledge or feel some level of reassurance when they decline. Cramer admitted that the political climate in Washington is confusing and, at times, legitimately troubling for markets. He added:

“But like yesterday, when I opined about the chicken littles who tell us that a weak dollar means a weak country and a terrible stock market, I’m going to demand that people stop making Treasury mountains out of Treasury molehills.”

Our Methodology

For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 15. 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 (see more details here).

Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 84

Noting the stock’s recent decline, a caller inquired about Starbucks Corporation (NASDAQ:SBUX). Cramer replied:

“Yeah, it has. Now, we bought some for the Charitable Trust at a great price. We let it go up. We sold some, we did not sell enough. Sometimes that happens. People think that the Chinese business is going to be written down badly if they try to sell it. I have so much faith in Brian Niccol. I am a buyer of Starbucks at $83.”

Starbucks (NASDAQ:SBUX) is a well-known global brand that roasts, markets, and sells coffee. It offers a wide range of drinks, coffee beans, and food products in its stores. On April 3, appearing on Squawk on the Street, Cramer said:

“Starbucks down eight. Should we not think about he’s got it under force, under four minutes now?… Look I’m just saying that Starbucks is not a great sale here at 91. It’s just not.”

Overall, SBUX ranks 5th on our list of stocks that on Jim Cramer’s radar recently. While we acknowledge the potential of SBUX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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 SBUX 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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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