Cramer Highlights Goldman Sachs’ Strong 2025 Run
Key Points
- Jim Cramer calls Goldman Sachs a “favorite” and a huge Charitable Trust holding
- Cramer links bank stock gains to deregulation since the Trump administration
- Goldman Sachs’ share price is up more than 50% this year, outpacing many tech leaders
- Robust IPO and M&A activity cited as a key driver of investment bank performance
Cramer Flags Goldman Sachs as a Top Holding
Jim Cramer has singled out The Goldman Sachs Group, Inc. (NYSE: GS) as one of his preferred financial stocks, describing it as a “favorite” and a “huge” position in his Charitable Trust. In recent remarks, Cramer discussed Goldman Sachs in the context of broader macroeconomic and regulatory conditions, emphasizing how the current environment has supported the firm’s performance. Goldman Sachs provides financial services across investment banking, asset and wealth management, and banking solutions, and Cramer’s comments focused on how these businesses have benefited from recent market and policy trends.
Deregulation and Policy Shifts Boost Investment Banks
Cramer attributed much of the recent strength in large U.S. banks, and investment banks in particular, to deregulation that followed the Trump administration’s arrival in the White House. He said he had asked whether there would be a tangible benefit from this deregulation and concluded that “it’s a clear yes.” According to Cramer, banks have been solid performers this year, while investment banks have experienced what he called a “bonanza,” which he linked directly to a less restrictive regulatory stance. He argued that these firms earn more when the White House is not blocking mergers or heavily scrutinizing new initial public offerings (IPOs), conditions that he believes have supported earnings and share price gains at institutions such as Goldman Sachs, Morgan Stanley, and JPMorgan Chase.
Goldman Sachs Outpaces Major Tech Stocks
Discussing performance on his December 19 episode, Cramer highlighted the scale of Goldman Sachs’ share price gains this year. He cited figures showing Goldman Sachs up around 56% to 57% for the year, noting that this advance eclipses most of the performance of the so‑called Magnificent Seven group of leading technology stocks. Cramer suggested that Goldman Sachs may be growing faster than almost all tech names, including those in that group, while also characterizing the bank’s risk profile as lower than many technology stocks. He contrasted what he described as modest expectations for financial and consumer spending companies with what he called “monstrously high” expectations for businesses tied to data centers, arguing that the former have been consistently delivering better‑than‑expected numbers.
IPO and M&A Activity Fuels Bank Stock Rally
Cramer also pointed to a busy dealmaking calendar as a key factor behind the rally in bank shares. He said there have been “plenty of IPOs and acquisitions,” which he believes have driven “furious buying” of bank stocks. Within this backdrop, he referenced a positive article about Wells Fargo as part of a generally constructive narrative around large U.S. financial institutions. Alongside Goldman Sachs’ gains, Cramer noted that Morgan Stanley shares are up about 43% for the year and JPMorgan shares are up almost 35%, underscoring broad strength across major investment and commercial banks. While acknowledging Goldman Sachs’ potential, the article that relayed Cramer’s comments also stated a preference for certain artificial intelligence‑related stocks, which it described as offering greater upside potential and less downside risk compared with GS.
Key Takeaways
- Cramer’s endorsement of Goldman Sachs is closely tied to a regulatory backdrop that he views as favorable for large investment banks.
- Goldman Sachs’ share price performance has not only been strong in absolute terms but has also outpaced many high‑profile technology stocks this year.
- Active IPO and M&A markets are portrayed as central drivers of earnings and investor interest in major banks, supporting broad sector gains beyond just Goldman Sachs.
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