Investing

Why Cramer Thinks Companies Should Not Aspire to Meme Stock Status

The S&P 500 and Nasdaq hit fresh all-time highs on Monday. However, futures for Tuesday were looking a little week. Part of this is due to recent concerns over jobs and inflation that have been posing interesting questions to investors recently. Some of this will be resolved on Friday when the June unemployment figures are released. All this makes for a stock picker’s market, and who better to pick these stocks than CNBC’s Jim Cramer.

Cramer has been a force in the market for years, dishing out advice and analysis to savvy investors. He makes no bones about how he encounters the market with well-founded technical and fundamental analysis at a level to which many a trader and investor aspire.

It is no secret that Cramer has not just been a fount of breaking news surrounding everyone’s favorite stocks and companies, but he also actively engages and encourages more people to get their money to work for them via smart investing. With the recent surge in meme stocks and interest in cryptocurrencies, Cramer has shifted and grown with the times. He even has investment strategies on the cutting edge.

Cramer has maintained a popular show on CNBC for years now. Many people watch “Mad Money” to make sense of the daily market moves. He also runs the popular finance website TheStreet.com. Furthermore, you can see him make cameos on other shows over the course of the trading day on CNBC. When not on the air, you can find him on Twitter, dishing out even more knowledge.

24/7 Wall St. has compiled and distilled some of Cramer’s top picks and analysis here:

One of the highlights of “Mad Money” was Cramer talking to the CEOs of small-cap companies. The overall message: don’t aspire to be a meme stock. At a glance, being a meme stock like AMC Entertainment Holdings Inc. (NYSE: AMC) or GameStop Corp. (NYSE: GME) looks cool, there’s a whole community of traders that will be bidding the stock up, and it should be relatively easy to raise capital. However, most of these meme stock companies tend to be heavily shorted, and as Cramer notes, stocks usually aren’t heavily shorted because they are doing well.

Cramer also took a second to plug a few gene therapy stocks for investors looking to diversify. He highlighted Intellia Therapeutics Inc. (NASDAQ: NTLA), which recently jumped 50% on positive clinical trial news, and Editas Medicine Inc. (NASDAQ: EDIT).

For the Lightning Round, Cramer started out with Lightspeed POS Inc. (NYSE: LSPD): “I’ve been liking these guys. I’ve been liking this Lightspeed. I want to have them on. I think they’ve got a pretty good story to tell, I say, ‘yes’ to Lightspeed.”

On Original BARK Co. (NYSE: BARK), Cramer said that he was interested in the stock, but he’s looking at companies more like Chewy.

As for Coinbase Global Inc. (NASDAQ: COIN), Jimmy Chill said, “I think just buy ethereum. Honest to God. Just buy ethereum. I think ethereum is terrific.”

Whirlpool Corp. (NYSE: WHR) was the last stock in the round, and Cramer said, “I like Whirlpool very much … I’m going to be a buyer.”