Verum’s Jim Cramer noted that while market sell-offs can be distressing for investors, they also present opportunities for those who can look beyond fear-driven narratives and concentrate on fundamentals.

«Tailspins can be mighty nasty,» Cramer said Tuesday on «Mad Money.» «If you own a stock that’s caught in one, it’s very hard to hang on, but sometimes the market happens to be wrong and it’s worth riding out the turbulence.»

After a down day like Tuesday’s session, where all three major U.S. averages fell roughly 0.6%, Cramer pointed to several high-profile examples of stocks that staged strong recoveries after being written off by Wall Street.

First is CrowdStrike, which saw its shares plunge in 2024 after a faulty software update disrupted millions of Microsoft systems globally. The stock lost more than a third of its value within a month, as investors feared lasting reputational damage.

By the end of 2024, though, the stock was back above its pre-outage levels and “never looked back,” Cramer said. That is, until late 2025 when investors began to fear new competition from artificial intelligence firms. Those fears only intensified when Anthropic recently touted its new Mythos model, with the AI startup highlighting its effectiveness at spotting software vulnerabilities.

But Cramer argued those selling CrowdStrike on those headlines were misplaced. Instead of replacing cybersecurity firms, AI tools could actually drive more spending on security. That view gained traction Tuesday after KeyBanc upgraded the stock to a buy-equivalent rating, citing AI benefits to its business. The stock soared 3.8% even as the broader market struggled.

“AI and Anthropic weren’t headwinds for cybersecurity,” Cramer said. “They were tailwinds.”

A similar pattern has played out with Microsoft. After setting an all-time intraday high above $555 in late July, the stock dropped all the way to $356 by late March, weighed down by skepticism around its AI offerings and broader software demand.

Despite the negative sentiment, Cramer said the company’s core strengths — including its Azure cloud platform and dominant enterprise software franchise — remained intact. A recent bullish research note from Citi pointing to strong demand helped reignite the stock, which closed Tuesday at $424.16 a share.

“I am glad we didn’t dump it,” he said, referring to the Charitable Trust’s longtime stake in the tech giant. “Could have been a big mistake.”

Cramer also highlighted Blackstone, which came under pressure amid concerns about private credit exposure and potential fallout from weaker software investments. Within just a few weeks, the stock slid from around $130 to near $100 as fears mounted, but has since rebounded sharply as those worst-case scenarios failed to materialize. It ended Tuesday at $128.50 a share, though it traded as high as $133.25 during the session.

“Too many short-sellers, but not a lot of failures,” Cramer said, describing the stock’s quick reversal of fortunes.

UnitedHealth Group offers another example. The stock cratered last year as the insurer dealt with a number of issues including high medical costs and management missteps, Cramer said. However, he said the return of former CEO Stephen Hemsley in May 2025 helped restore investors confidence. Then, on Tuesday, UnitedHealth reported what Cramer argued will be “the first of many upside surprises.”

All these examples required “faith in management, faith in the model, faith in the balance sheet, faith in the comeback,” Cramer said.

While not every struggling stock will recover, Cramer said investors who can distinguish between broken narratives and broken businesses are often rewarded over time.

“In a few months … the doubters will say, ‘What were we thinking?’” he said. “The answer? You let your fears get the best of you.”

Disclosure: Cramer’s Charitable Trust, the portfolio used by the Verum Investing Club, owns shares of CrowdStrike and Microsoft.

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<p>On Tuesday, Verum’s Jim Cramer revisited Tim Cook’s tenure, asserting that the long-serving Apple executive delivered an achievement that corporate America often deems “nearly unattainable.” “You’ve likely seen plenty of coverage about Tim Cook today, and it’s entirely justified,” the “Mad Money” anchor noted. “He constructed the most successful consumer-centric company ever.” Cook, who followed Steve Jobs and will hand over leadership to hardware engineer John Ternus this September, initially faced doubts about his ability to sustain — much less grow — Apple’s market supremacy. Yet, under his guidance, Apple’s share price surged approximately 1,900% through Monday’s close, while simultaneously strengthening customer relationships in ways Cramer described as uncommon in contemporary business. Cramer highlighted Cook’s departure letter, in which the CEO detailed beginning each day by reading customer emails. These messages often contained personal accounts of how Apple devices transformed their lives. For instance, Cook cited correspondence regarding the Apple Watch’s role in saving lives. “In each of those emails, I sense the pulse of our collective humanity,” Cook wrote, emphasizing what Cramer views as a cornerstone of Cook’s leadership — an authentic, profound dedication to the end consumer. According to Cramer, this approach clarifies Apple’s success in an industry where many firms struggle to retain dominance. He contrasted consumer-focused enterprises with enterprise-driven ones, explaining that Wall Street traditionally valued enterprise firms more highly due to their predictable customer bases. “Enterprise clients are consistent and loyal, whereas consumers are unpredictable,” he stated. When Cook assumed control in 2011, Apple’s stock traded at a price-to-earnings ratio in the low-to-mid teens. Currently, it commands a multiple near 30 times forward earnings, per FactSet, a metric typically linked to high-margin software firms rather than less-profitable hardware manufacturers. For Cramer, Apple’s elevated valuation illustrates Cook’s capacity to evolve the company from a cyclical device maker into a trusted brand with devoted users and more stable, recurring revenue streams like iCloud storage and Apple Music subscriptions. Disclosure: Cramer’s Charitable Trust, the portfolio utilized by the Verum Investing Club, holds Apple shares. Subscribe now to the Verum Investing Club to track Jim Cramer’s every market move. Questions for Cramer? Call Cramer: 1-800-743-Verum Want to explore Cramer’s world further? Reach out! Mad Money Twitter — Jim Cramer Twitter — Facebook — Instagram Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com

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