Moderna, Palantir, Salesforce Lead August Stock Comeback: Cramer Review
Key Points
- Moderna led S&P 500 winners in August after announcing promising melanoma vaccine results with Merck, reversing years of Covid-vaccine-driven pressure.
- Enterprise software stocks including Palantir, Salesforce, and ServiceNow rebounded after Situational Awareness hedge fund was forced to unwind leveraged short positions in late July.
- Sandisk surged in August following a 46% decline in July, while Coinbase rallied as cryptocurrencies recovered amid concerns about U.S. government spending.
Cramer noted that Palantir's earlier decline never made sense given its exceptional combination of revenue growth and profitability. Salesforce rebounded after posting a strong quarter that undercut fears of the "SaaSpocalypse," while ServiceNow rallied after demonstrating it could successfully integrate AI into its existing business. Veeva, focused on the life sciences industry, also bounced back alongside the broader software group after concerns that AI would disrupt its business proved overblown. "The comeback in software from incredibly depressed levels was breathtaking," Cramer said.
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Gartner joined the August rebound after earlier being hit by concerns that AI models such as Anthropic's Claude could diminish the need for its technology research. Cramer said those fears ultimately weren't reflected in the company's business. Outside software, miner Newmont benefited from an emerging recovery in the price of gold, which had soared through late 2025 and into early 2026 before topping out. Cramer said he prefers Agnico Eagle Mines stock over Newmont.
Super Micro Computer and Sandisk surged in August as booming demand for memory used in AI data centers lifted both stocks. Sandisk's strength in August came after a brutal July that saw shares fall 46%, with the stock remaining approximately 33% below its late June closing high. Super Micro's rally occurred despite continued scrutiny surrounding its business in China.
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Paramount Skydance also bounced back as its proposed Warner Bros. Discovery acquisition remained delayed. Last week, California Attorney General Rob Bonta canceled a meeting with Paramount Skydance because the company demonstrated a "lack of good faith" in early settlement talks. Cramer said investors think Paramount is overpaying, meaning the roadblocks to completing the deal have actually helped the stock.
Coinbase landed among the month's top performers as cryptocurrencies rebounded. The rally came as concerns about ballooning government spending and the rising cost of U.S. debt drove investors toward perceived hard assets as a hedge against a weaker dollar. Cramer noted the stock has become a popular proxy for investors seeking exposure to the broader crypto market.
The August rebound pattern reveals a critical market dynamic: stocks that experienced the steepest declines—particularly those hit by leveraged shorting positions—saw the most substantial reversals. Sandisk's 46% July decline followed by August strength, combined with the software sector's turnaround after the Situational Awareness unwinding, demonstrates how forced liquidations of concentrated short positions can artificially amplify both downward and upward price movements, potentially creating trading opportunities for investors who distinguish between fundamental weakness and forced selling.
What This Means
August's rebound in previously beaten-down stocks suggests market participants are reassessing fears about AI disruption to legacy software and technology businesses. If improving earnings fundamentals for companies like Salesforce and ServiceNow continue through Q3 and Q4 2026, the software sector could maintain momentum, though the rally's dependence on hedge fund unwinding indicates its sustainability depends on whether original bearish theses about AI disruption resurface.
Sources: CNBC and other international news outlets.
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