Jim Cramer Advises Ditching Stellantis (STLA) for General Motors (GM)
On August 11, financial commentator Jim Cramer urged investors to abandon Stellantis N.V. (NYSE:STLA) in favor of General Motors Company (NYSE:GM) during an appearance on his Mad Money program. Cramer criticized the automotive division's declining stock value and disappointing earnings reports, advising, "You got to step up from that bad corn to Silver Queen corn.
You know what that means? You got to go into General Motors. I don t even think of Stellantis as being investable right now. But GM? Wow. Make the move. Make it tomorrow." Cramer's endorsement of GM hinged on his faith in CEO Mary Barra, describing her as "amazing" and emphasizing her leadership in steering the company through challenging times.
In contrast, Cramer saw Stellantis as a "value trap," citing high dealer inventory levels, aggressive discounts, and volatile cash flows that have depressed profit margins and raised concerns about its long-term outlook. Hedge fund interest further reinforces the disparity between the two companies, with GM receiving stronger institutional backing compared to STLA.
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