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TheStreet Open House

Jim Cramer's Stop Trading: The Value of High-Valuation Stocks

Stocks in this article: AMZNCRMFEYEWDAYTWTR

NEW YORK (TheStreet) -- High-growth stocks will continue to "trade like junk," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Cramer's Stop Trading" segment. 

He pointed out that Amazon (AMZN) continues to sell off after failing to deliver the earnings results investors were seeking. 

He said he is not recommending Salesforce.com (CRM) currently but noted it only trades at seven times its enterprise value to revenue ratio while other stocks such as FireEye (FEYE) and WorkDay (WDAY) are still quite expensive. 

Major biotech stocks are now trading in line on a valuation basis with slower-growth pharmaceutical stocks. However, Cramer argued that not all of the high-valuation stocks are junk companies, although they will likely continue to trade poorly. 

"You have to look at them on a case by case basis," he added. 

"If Twitter (TWTR) were actually able to do a great number of some sorts, you would get a bounce in some of these" momentum stocks, Cramer concluded.

Twitter is scheduled to report earnings on Tuesday after the close.

-- Written by Bret Kenwell in Petoskey, Mich.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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