Stock Groups

Cramer says selling not done for tech stocks trading at high multiples to sales: ‘Those have had it’

[ad_1]

Jim Cramer

Scott Mlyn | CNBC

CNBC’s Jim Cramer, CNBC’s chief market analyst believes that there’s still some carnage in the market.

Following a volatile stock session on Monday, “Tomorrow,” you have to make some sales if your stocks are going up in price.

Cramer refers specifically to the stocks with high sales valuations and little profit that are being traded at high price. This is despite a Federal Reserve pivot which could result in higher rates. Cramer suggests that these stocks must be separated from those companies which actually produce products and offer services today that generate profits.

Major averages lost a lot on Monday and ended up in the green. It has been a month of mixed fortunes for stocks, particularly the tech-focused Nasdaq composite, which is currently in correction territory.

The index was only a few percentage point away from a bear market at one point Monday.

Cramer used Lemonade CloudflareAs an example, he gives stocks that he believes are difficult to value.

He stated that only when major software companies buy these failing high-multiple tech shares will the bottom fall for such names.

— Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

[ad_2]