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Morning Bell With Jim Cramer: Don’t Buy Shopify Now

Jim Cramer shares stock market news about buying Shopify, Bed, Bath & Beyond's turnaround plan and Raytheon earnings.

Dow futures rebound from the biggest decline in four months as earnings distract from surging coronavirus infections. Lockdowns in France and Germany highlight the scale of the second wave in Europe. 

U.S. infections hit a record high 80,662 as health officials warn of more spread to come.

In the last episode of Mad Money, Jim Cramer said that when the market throws a sale like it did Wednesday, investors need to be ready to pounce. Big market selloffs are not a time to panic, he added.

TheStreet's Katherine Ross and Cramer discussed buying Shopify, Bed, Bath & Beyond's turnaround plan, and Raytheon earnings.

Shopify Stock: Buy or Sell?

On Tuesday, Shopify  (SHOP)  said it will partner with TikTok in what the video-sharing app operator said will help more than 1 million merchants create and run campaigns on the short-video platform.

Shopify reported a blowout quarter Thursday morning and the stock is up big premarket.

The company posted adjusted earnings of $133.2 million, or $1.13 a share, in the third quarter vs. a loss of $33.6 million, or 29 cents a share, a year ago.

Cramer said that Shopify does many things that are right but investors shouldn’t buy the stock at the level it is at now. He added that the company has to give up more than it has, “because some people can’t trust it due to how it is up too much and that narrative is taking control of the market.”

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Bed, Bath & Beyond Stock: Buy or Sell?

Bed, Bath & Beyond  (BBBY)  shares slumped lower Wednesday after the home retail said it would repurchase $675 million worth of stock over the next three years while outlining an aggressive turnaround plan that includes store closures and supply chain investments.

Bed, Bath & Beyond said it will purchase $225 million in shares this year, as well as $150 million per year over the next three years as part of an accelerated shareholder return program.

Cramer said that this will be a successful turnaround for the company with the cash building again.

Raytheon Stock: Buy or Sell?

On Tuesday, Raytheon Technologies  (RTX)  shares rose after the defense contractor reported third-quarter earnings that were lower year over year but still topped analyst estimates. Revenue climbed 30% to $14.74 billion from $11.37 billion.

Cramer doesn’t prefer buying Raytheon because, without the offsets of Otis and Carrier businesses, it is “very tough to own.” He prefers buying Honeywell  (HON)  stock over Raytheon.

None of these stocks are key holdings in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.