“There was a lot of damage, but given how big the stocks are in this sale, a lot of them could still experience a lot more setbacks before they start to look attractive,” said the host of “Mad Money ”.
In a list of 75 tech stocks, Cramer noted that on average, they are down 37% from highs. Despite the decline, their valuations remain elevated relative to the outlook for companies.
Meanwhile, bond yields have risen steadily, making tech stocks and their future income potential less attractive. The yield on the benchmark 10-year Treasury bill climbed to 1.65% from less than 1% since December.
“Without a major interest rate cut, I think the cloud cohort will continue to struggle, and there is no rush to make purchases until we get to lower levels for the most part. if not all of these actions, ”Cramer said.
Coinbase, Square, Carvana, Etsy, Coupang and Salesforce all meet the standard and trade below a sales multiple of 10, Cramer said. He also singled out Roblox, ServiceNow, Affirm, and RingCentral as intriguing opportunities.
“I think you can take a small position here, but leave room to buy more at lower levels because I wouldn’t be surprised if there is more pain in the store,” he said.