Square Skyrockets 100% -- Jim Cramer Reveals What Could Happen Next

Cramer wants to buy Activision Blizzard for the Action Alerts PLUS portfolio.
By Bret Kenwell ,

Shares of Square Inc (SQ) - Get Report have been on fire this year, climbing nearly 100% in 2017. With earnings set for Wednesday after the close, investors are hoping the company can maintain momentum.

"I like Square," TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said from the floor of the New York Stock Exchange Tuesday. But the issue is that it's run so much, he added. When it first went public, Square was undervalued.

Cramer explained that his small-plate Mexican restaurant, Bar San Miguel, uses Square's Caviar system. Square is typically used by small- and medium-sized businesses. In some cases, it's got a great system that allows for cash-flow strapped companies to get advanced money from Square based on receipts of sale, Cramer explained. This is great for some companies, he added.

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Turning to Take-Two Interactive Software Inc (TTWO) - Get Report , the company will also report earnings on Wednesday after the close. Up more than 60% on the year, TTWO stock has been another strong performer. The company wants more traction in the e-sports landscape, which it may get over time with its 2K sports division, Cramer said.

However, this is not a consequential quarter. The good news, though, is that because Take-Two has such a diverse portfolio of games -- with notable franchises like Grand Theft Auto, Bioshock, Civilization, Mafia and NBA 2K -- the quarter should be fine.

While Cramer's not worried about Take-Two's quarter, he's got his eyes on Activision Blizzard (ATVI) - Get Report for the Action Alerts PLUS charitable trust portfolio.

"We think it is cheap," he reasoned, before saying he's wanting to buy shares a bit lower.

Square shares rose 0.5% to $26.95 in postmarket trading Wednesday.

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

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