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jim cramer

Scott Mlyn | CNBC

It’s been a bloody few weeks for once-high tech stocks and CNBC’s Jim Cramer thinks there’s still a bit more carnage to come for some parts of the market.

“Tomorrow you have to sell a little… if you own stocks that are selling at a multiple of the sells… those are done for,” the “Mad Money” host said in a CNBC special report Monday night, after a volatile session for stocks.

Cramer is specifically referring to stocks that trade at high asking price valuations that have little or no current earnings and were offered during the pandemic for their future earnings potential. These names are now reeling from a Federal Reserve pivot that could lead to higher rates. Cramer says those stocks need to be separated from the companies that actually make products and sell services that are making profits today.

The main averages turned around on Monday, recouping heavy losses to finally close in the green. However, it has been a sea of ​​red for stocks this month, specifically the tech-focused Nasdaq Composite, which is in correction territory.

At one point on Monday, the index was just a few percentage points away from hitting a bear market.

Cramer used Lemonade and Cloudflare as examples of stocks that he finds difficult to value.

He said that only when a major software company enters into the purchase of one of these faltering multi-hi-tech stocks will these types of names hit rock bottom.

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