CNBC’s Jim Cramer told investors Friday that the stock prices of certain newer businesses that experienced great success during this pandemic may continue to fall.

“When your stock doesn’t have any dividend support and doesn’t have a reasonable valuation versus earnings — assuming it even has earnings — there’s no floor in this market. How low could it fall? You will almost always get a lower answer, “the “Mad Money“

You should never confuse a large decline with the bottom. “They are not synonymous,” he said.

After the Friday stock market crash, stocks fell May consumer price indexThe inflation figures were much higher than anticipated.

The stocks that were among the most affected by today’s stock market collapse are Stitch FixAnd DocuSignCramer highlighted these names as examples of Cramer’s warning about investing in ex-high-flyers.

Stitch Fix’s shares fell 18% after it announced Thursday that the company would layoff employees and expects to see a decrease in revenue for the fourth quarter. 

A new 52-week low for the company was reached at $6.18 in the morning, down from $64.52, which had been reached about a year ago.

DocuSign’s stock fell 24% following another pandemic. missed Wall Street expectationsIts latest quarter revenue and earnings

A new 52-week low of $64.30 was also recorded by the firm earlier today, which is far lower than its previous 52-week peak at $314.76 last August.

“These newer stocks, the ones that were coined in the last three, four, five years, they’ve been insanely expensive before the peak … maybe even before they came public, so as their business deteriorates, they can fall very, very far before they find any kind of support,” Cramer said.

He also said that, even though DocuSign suffered a severe fall in its stock price, he doesn’t believe the stock’s value is high enough to make it a worthwhile buy. Stitch Fix’s stock, however, is not worth buying until their core business stabilizes. 

“We don’t care where former market darlings are.” … We only care where they’re going,” he added.

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