Jim Cramer Hails Oddity Tech Ltd. (ODD) 'Fabulous Beat and Raise' - Stock 'Caught Fire'

We recently published a list of Jim Cramer Says Big Tech is Back And Deep Dives Into These 8 Stocks. In this article, we are going to take a look at where Oddity Tech Ltd. (NASDAQ:ODD) stands against other stocks that Jim Cramer discussed.

During the latest episode of Mad Money, which aired on the 1^st of May, Jim Cramer dove straight into the recent tech earnings reports and celebrated the fact that some of the biggest names reported great earnings, saying:

“Sometimes you forget why you ever like something in the first place. Take the super stocks, the hyperscalers, the tech titans, I don’t care, whatever you want to call them. These stocks all got lumped together because of their size, their gigantic market caps that dwarf the rest of the market and then they lost their juice. […] We’re reminded of how the mega caps got so big to begin with. It’s their scale, their smarts, their moats, their balance sheets, and their sensational products.”

READ ALSO: Did Jim Cramer Hit or Miss On These 13 Stock Predictions? And How Did Jim Cramer’s 12 Bold Predictions Play Out?

He then emphasized how quickly the market turned around on the back of those great earnings reports:

“Couple weeks ago, the formerly magnificent seven felt impossible to own. But days like today remind you why you avoid these stocks at your own pearl. You got to have a couple of them. These companies are endowed with tens of billions of dollars. They’re like nation states. They don’t flinch at spending tens of billions to compete in artificial intelligence. They have the flexibility to pivot to what’s necessary. […] They’re run by seasoned hands who are incorruptible and bold and can course correct if they missed the mark the previous quarter. They are marvellous gems.”

Voicing his support for the big American tech companies, he said:

“This is why I take every chance to harangue public officials and urge them to stand up for these companies which because of their size have become honeypots for lawsuits by foreign governments who never stop hitting them up for money. But in the end, their optionality knows no bounds. Save tariffs. Something that they could not have seen coming and snuck up on them very fast. Snuck up on everyone. This has been the roughest stretch for these amazing companies that I can recall. “

Finally, he gave his nod of approval to these resilient companies, before beginning to analyze their recent earnings reports:

“But the bottom line, if we’re in for lean times, you know what? It’s quarters like these that remind me that these mega caps were built to prosper, built to make money in any kind of market, and they’re truly ready to excel when things turn south for everybody else, including Apples.”

Our Methodology

For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 1. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock 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).

Oddity Tech Ltd. (NASDAQ:ODD)

Number of Hedge Fund Holders: 21

Oddity Tech Ltd. (NASDAQ:ODD) was highlighted as one of the few consumer companies to deliver a blowout quarter this earnings season despite tariff concerns. Cramer praised its revenue growth, gross margin resilience, and use of AI, but warned investors not to chase the stock after its massive rally. Here’s what his analysis:

“For those of you who don’t remember, Oddity is this direct-to-consumer co cosmetics company. It’s based in Israel, and I’ve liked it for a while now. But until this week, the stock hadn’t really given us a reason to get excited. Since late 2023, it’s basically been stuck in the 40s. Nothing much to write home about.

But on Tuesday night, Oddity reported a fabulous beat and raise quarter. Something we haven’t seen that often this earning season because everyone’s so worried about tariffs. In response, the stock shot up 30% yesterday, surging to a new all-time high. If you didn’t know any better, you would have thought that maybe caught a takeover bit. Yeah, the quarter was just that good. […]

What got people excited here was the new full year forecast. They’re talking about 22 to 23% revenue growth. And they said their outlook incorporates their view of tariff and trade related headwinds. And that view is pretty darn bullish. […]

Wow. That’s what we want to hear. And that’s why Oddity expects its gross margin to only take a 50 to 100 basis point hit from tariffs. So many others are so much higher. In fact, they see this as an incredible opportunity to take market share from their competitors who have much more exposure to Chinese manufacturing. […]

I believe him [the CEO Oran Holtzman] because tariffs aside, this is a very strong business. As Oddity explains it, they’ve been investing for years in anticipation of a big shift in beauty spending towards online channels. That’s now playing out and this company’s a big winner.

Normally people prefer to buy the stuff in a store so they can see how it looks. But Oddity’s been able to recreate that experience online with generative AI technology that can show you how the makeup will look on your face and it is such a huge hit. […]

Now, after the stock spectacular run yesterday, it’s obviously gotten a lot more expensive. It now sells for just over 33 times the new consensus earnings estimate for 2025. Just statingthe obvious: you’re chasing a bit if you’re buying it up here. Ideally, if you want to get into this one, at least in the way that we think about it here on Mad Money, I think you should wait for a market-wide pullback that knocks the stock down a bit from these elevated levels.

But the bottom line, oddity stock caught fire yesterday because it reported a strong quarter, raised forecast and then gave you a total all clear on the tariff situation. That means the stock’s safe to own in this environment. Although again, if you don’t own already, maybe you wait for a bit of a sell-off, a pullback to pull the trigger. In such a volatile market, I bet you get a better chance.”

Oddity Tech Ltd. (NASDAQ:ODD) is an Israeli digital beauty and wellness platform known for its data-driven, AI-powered product development and virtual try-on tech, which helps it dominate online cosmetics retail through brands like Il Makiage and SpoiledChild.

Overall, ODD ranks 3rd on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of ODD 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 ODD 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.