Stock Market Today With Jim Cramer: Elon Musk and Bitcoin

Jim Cramer discusses the latest stock market news, including Elon Musk's decision to pull out of bitcoin, WoodStocks and markets on Thursday.
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Stocks rebounded Thursday as investors weighed a jump in producer prices against a fall in weekly jobless claims.

TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about Elon Musk's decision to pull out of bitcoin, WoodStocks and markets on Thursday.

Tesla and Bitcoin

Tesla  (TSLA) - Get Report Chief Executive Elon Musk pulled the plug on bitcoin, sparking a cryptocurrency selloff late on Wednesday. Musk tweeted that the electric-vehicle company was no longer accepting payments in bitcoin because of environmental concerns.

Cramer said that while Musk somehow linked bitcoin to energy, it's been that way the whole time. "Why didn't he think about that when he said that he was going to take crypto [payments]? Some people would say it was disingenuous," Cramer said.

He added that this was an odd thing to do. "I don't know how many cars were bought with bitcoin. I don't know whether there was another objection besides the environment because that doesn't hold water," he added.

WoodStocks

In his Real Money Column, Cramer said the largest positions of stocks in Cathie Wood's ARK portfolio are great companies with bad stocks including Tesla, Teladoc  (TDOC) - Get Report, Roku  (ROKU) - Get Report, Spotify  (SPOT) - Get Report, Twilio  (TWLO) - Get Report, Zillow  (ZG) - Get Report, Square (SQ) - Get Report and a few others. Cramer described these as WoodStocks.

Cramer said he does not like Teladoc. "I did, but there is a lot of competition. But it's a good company. Zoom  (ZM) - Get Report has got to do more than what they are; they can be incredibly lucrative," Cramer added.

Cramer said this is an opportunity to get out of stocks in Wood's portfolio that don't have earnings. "The distinguishing factor I have is stocks vs. companies," said Cramer.

Thursday's Market

Cramer said there is a snapback rally in the market today, an opportunity to reposition some stocks.

He's been adamant that there are two kinds of stocks in this market -- stocks that sell at a multiple to sales and stocks that sell at a multiple to earnings. "The ones that sell higher than the market multiple on earnings have to have a lot of cash flow and very solid revenue growth, of which there are many," he said.

"The ones that sell as a multiple to sales, if it sells 9 times to 10 times, investors have a great opportunity to sell, and if it sells below that, they have an opportunity to trim it," Cramer added.

None of the stocks mentioned in this article are key holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer adds or removes stocks from his portfolio? Learn more now.