Investors should dump their stocks in companies that aren’t profitable, CNBC’s Jim Cramer said Thursday, one day after the Nasdaq entered correction territory.
“I don’t think it’s as dangerous, obviously … things can bounce. I remain convinced that if a company’s not making money … you got to sell,” Cramer said on “Squawk Box,” before the market opened.
The “Mad Money” host said early Wednesday that buyers should save their dollars when it comes to what he called “clown companies,” sticking to his 2022 playbook for investing in companies that turn out profits.
Cramer’s comments come on the heels of recent stock slides that hit tech companies, especially growth names hurt by rising bond yields, which make borrowing to expand their businesses more expensive.
Stocks that are currently attractive include Advanced Micro Devices, which recently fell to its lowest price in months, as well as Microsoft and Cisco, according to Cramer.
Cramer’s charitable trust, which users can follow by signing up to the CNBC Investing Club, owns AMD, Microsoft and Cisco.
The Covid omicron variant has begun to “slow down a lot of different things,” Cramer said, when asked about the much larger-than-expected rise in weekly initial jobless claims.
The Labor Department said Thursday morning that first-time filings for unemployment benefits for the week ending Jan. 15 increased 55,000 to 286,000 — the highest level since October.
Cramer said despite omicron’s effects, he remains optimistic on where the market is headed. He advised buyers not to jump the gun and oversell their shares.
“Maybe we do not need [to be] as aggressive because we kind of talked it down already,” he said. “These analysts all just want to give up on everything, for heaven’s sake.”