Was Jim Cramer Right About Airbnb (ABNB)?

We recently published a list of 13 Stock Predictions That Jim Cramer Got Completely Wrong. In this article, we are going to take a look at where Airbnb, Inc. (NASDAQ:ABNB) stands against other stocks that Jim Cramer discusses.

During a recent episode of Mad Money, which aired on Monday, the 5^th of May, Jim Cramer gave some personal anecdotes from his experience as an investor. He emphasized the importance of savings, starting early and investing as much as one can afford:

“If you don’t have enough money or the time to own a stock portfolio, you can only own one or two stocks, send the money in, as little money as you can, to an index fund, to one of these big mutual funds.”

READ ALSO: Jim Cramer Absolutely Nailed These 11 Stock Predictions and Did Jim Cramer Hit or Miss On These 13 Stock Predictions?

Jim Cramer gave advice to his viewers about stock picking and which investing accounts to use. He also warned them to not treat investing the same way as gambling and to not chase hype:

“So here’s the bottom line: You want to get started, go small, invest [in] what you know, research intensely, just research, research, research… It’s as simple as a keystroke and the information’s free, including up-to-the-minute financials, analyst presentations, brokerage research, and of course, the conference calls that I tell you are a must if you want to actually know what you’re doing. Simple? No. Lucrative? You bet it is.”

Our Methodology

For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during Mad Money episodes that aired on the 5^th and 6^th of May 2024. We then calculated their performance for the past 12 months, until May 6^th, 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).

Airbnb, Inc. (NASDAQ:ABNB)

Number of Hedge Fund Holders: 54

Cramer discussed Airbnb, Inc. (NASDAQ:ABNB) in the context of weakness at its competitor, Expedia’s Vrbo. He believed technical issues at Vrbo would directly benefit Airbnb at the time. Here’s what he said back then:

“I’m expecting a terrific quarter from Airbnb—but that’s after listening to Expedia’s conference call last night where they talked about Airbnb’s competitor Vrbo having some technical issues that really hurt business. Hey look, what’s bad for Vrbo is most likely good for Airbnb.”

Cramer’s belief that Airbnb, Inc. (NASDAQ:ABNB) would benefit from Vrbo’s missteps didn’t materialize, as the stock slid 21.80%.

The tech rental company has been struggling since, and Cramer complained about capital outflows from the travel industry. Here’s what he said earlier in April:

“Well, I know that there’s a lot of questions about going out to dinner and going out to dinner, the restaurants that charge too much, not good. The travel boom. Many people feel is over. . .if it’s the airlines, AirBnb has still held up relatively, but Marriott has started to come down. This group is rolling over, but it’s a little self-fulfilling in the sense that you know David, once you get, one of them down, people just say I’m getting out all of them.”

Overall, ABNB ranks 11th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of ABNB 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 ABNB 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.