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Morning Bell With Jim Cramer: Don't Buy the Dip in Peloton

Jim Cramer shares stock-market news including Peloton's safety issues, breakup chatter about Alphabet and a look back at the earnings season so far.

Dow futures are falling over 140 points Tuesday as concerns grow for the rising cases in South America and Asia, with new variants, that could stall global recovery for the COVID-19 pandemic.

In the last episode of Mad Money, Jim Cramer said it's a tale of two markets. While experienced investors are winning, many in the younger cohort are losing ground.

TheStreet's Katherine Ross and Cramer are talking about Peloton's safety issues, breakup chatter about Alphabet and a look back at the earnings season so far.

Peloton: Buy Or Sell?

The U.S. Consumer Product Safety Commission issued an urgent warning linked to the fitness equipment maker Peloton's  (PTON) - Get Peloton Interactive Inc. Report Treadmill+ and said it poses serious risks to children for abrasions, fractures and death.

Cramer said Peloton is not a buy and investors [who own it] need to sell the stock. "It's not going to necessarily knock the thing off the market but people who watch that video will say they like to have their kids workout with them etc but you will have to take to an isolation chamber if you want to use a Peleton," said. This incident is bad for sales, Cramer added.

Alphabet: Buy Or Sell?

Sen. Josh Hawley on Monday introduced a bill to "bust-up" Big Tech, which will target massive companies like Google  (GOOGL) - Get Alphabet Inc. Report and Amazon  (AMZN) - Get Inc. Report.

JPMorgan raised its price target on the stock on Monday.

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TheStreet Recommends

Analyst Doug Anmuth affirmed his overweight rating on the Mountain View, Calif., parent of Google.

“We remain positive on Alphabet, as we believe it is well-positioned across ads, clouds, and a number of other key initiatives to both drive and benefit from long-term digital trends,” Anmuth wrote.

Cramer dismissed the idea that you can break up Alphabet into Youtube, Search, Advertising, Google Cloud and Waymo. "It's ridiculous. They don't all fit together but that's ok. A lot of GE  (GE) - Get General Electric Company Report didn't fit together. A lot of the conglomerates don't fit together. So, I think Google is doing the right thing," he added.

Earnings Season Review

The first-quarter earnings season is gathering speed this week with Coca-Cola  (KO) - Get Coca-Cola Company (The) Report, Johnson & Johnson  (JNJ) - Get Johnson & Johnson Report and Netflix  (NFLX) - Get Netflix Inc. Report.

Discussing earnings season so far, Cramer said the banks were terrific. "Wells Fargo  (WFC) - Get Wells Fargo & Company Report is the only one that reacted and that's a special situation. JPMorgan  (JPM) - Get JP Morgan Chase & Co. Report and Bank of America  (BAC) - Get Bank of America Corporation Report had a good quarter, but no one seems to care. Citi was good and people did care because Citi  (C) - Get Citigroup Inc. Report is getting out of areas where it doesn't have to be in," he added.

Alphabet and Amazon are key holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.