CNBC’s Jim Kramer warned investors on Thursday that buying a stock of high-tech stocks was a losing strategy in today’s turbulent market.
“The era of victories, promotions and buying, no matter what … is over for high-rise stocks. There are still many other stocks, but if you’re still betting on those who go back … I don’t think it will work, “said the Crazy Money presenter.
Growth stocks are particularly vulnerable to inflation, Kramer said, because it hits the value of future profits.
“You may think that these companies are the greatest things after sliced bread, but professionals know not to pay so much for unprofitable sliced bread when there is a spiral of inflation,” added the host.
Kramer said the decline in shares of Okta and Snowflake – whose CEOs were both in “Mad Money” on Wednesday night – means the last straw for investors who buy high-tech technology stocks and try to cash in later. .
Both stocks fell on Thursday after gaining fourth-quarter earnings the day before. Shares of Okta fell 8.06%, while Snowflake fell 15.37%.
“Given that there are so many followers of the Inertia Camp and so many ETFs focused on [cloud and cybersecurity] enterprises covered by [Snowflake and Okta]those two names literally toppled the proverbial houses of buyers of weak buyers and traders of high-growth stocks, Kramer said.
The presenter added that he believes that many such buyers have already left the market.
“The momentum is gone, the charts are broken. “They lost too much money,” he said.