CNBC’s Jim Cramer on Tuesday examined the worst-performing stocks in the Nasdaq 100 in 2021, reaching a blended conclusion on their doable buying and selling trajectories this yr.
“There are a variety of names that ought to preserve dropping now that the Fed is your foe, but additionally some alternatives in the event you’re prepared to be affected person,” the “Mad Money” host mentioned.
Peloton
Cramer mentioned a lot went improper for Peloton in 2021 that he is shocked the inventory did not fall even additional than its 76% decline final yr. “Now, tax loss promoting right here is horrific … so a bounce can’t be dominated out. But, in the finish, train gear has by no means been an ideal enterprise, and it is going to be tough for Peloton to compete as folks begin feeling secure sufficient to return to the health club,” Cramer mentioned.
A trio of Chinese stocks
A safety personnel stands guard at the opening session of Baidu’s annual AI builders convention Baidu Create 2019 in Beijing, China, July 3, 2019.
Jason Lee | Reuters
Pinduoduo, Baidu and JD.com have been the second-, sixth- and eighth-worst performers in the Nasdaq 100 final yr, respectively, Cramer mentioned. He really helpful traders keep away from this trio of stocks, in addition to different Chinese corporations, due to Beijing’s more and more robust regulatory posture.
Zoom Video
Cramer mentioned he thinks traders should not utterly surrender on Zoom, even after a tricky 2021, as a result of the firm has great potential to develop as a participant in the enterprise software program class. “However, so long as Zoom tries to go it alone, its value to earnings a number of will preserve shrinking,” Cramer mentioned. “Currently it trades at roughly 40 occasions earnings, and I guess it could get even cheaper.”
Splunk
Even after final yr’s 32% decline, Cramer mentioned he views Splunk‘s inventory as a promote till the firm presents better transparency into the departure of former CEO Doug Merritt, who stepped down in November.
DocuSign
The Docusign Inc. utility for obtain in the Apple App Store on a smartphone organized in Dobbs Ferry, New York, U.S., on Thursday, April 1, 2021.
Tiffany Hagler-Geard | Bloomberg | Getty Images