Shares are down a whopping 20% and are hovering just above their 52-week lows. Downgrades are pouring in following the company's earnings report. While Fitbit topped analysts' estimates, guidance fell far short of expectations.
"I'm starting to think that maybe James Park doesn't care. He's the CEO and founder and he's a brilliant guy, but I don't know whether he's running this company as if it's a private company or a public company," Cramer said.
"He was perfectly willing to lay out a great story, but he was not willing to lay out great numbers," Cramer added. "I don't get that."
As a result, the stock is likely to be in the "penalty box" and could remain there for up to a year, he said.
Turning to payments companies, Cramer said, "There's nothing to like at Square (SQ) - Get Report ." Following the same advice he gave on Monday about First Data (FDC) - Get Report , he said investors should opt for PayPal (PYPL) - Get Report instead. PayPal is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.
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Shares of Kroger (KR) - Get Report have been under pressure lately, in part due to the recent broader market decline and partly due to comments from Walmart (WMT) - Get Report regarding food deflation.
However, that's not scaring Cramer away.
"I would buy Kroger right here," Cramer added, before turning his attention to another stock in the food space: WhiteWave Foods (WWAV) .
WhiteWave, also an Action Alerts PLUS holding, is either going to be acquired or will keep on growing, Cramer said. Either outcome is fine with Cramer, who believes in the company's long-term prospects.
WhiteWave had a "really good quarter," but its stock is being weighed down by earnings results from Hain Celestial (HAIN) - Get Report and Whole Foods Market (WFM) , which actually looked pretty good in Cramer's view.
Another "big position" the Action Alerts PLUS portfolio is Allergan (AGN) - Get Report , a stock that has "baffled" Cramer. However, he's not alone in wondering why shares remain so undervalued following the recent mega-merger with Pfizer (PFE) - Get Report .
Both CEOs -- Allergan's Brent Saunders and Pfizer's Ian Read -- have expressed confusion as to why the market continues to discount the soon-to-be titan of health care. Investors who are patient should eventually see shares rise, Cramer said, adding that he believes the stock can appreciate to $60 per share.
So which stocks does Cramer not like?
He's avoiding 3D Systems (DDD) - Get Report , even if the stock is close to bottoming. He also doesn't like Gogo (GOGO) - Get Report , saying the company is struggling to maintain one of its biggest customers in American Airlines (AAL) - Get Report , and that most airlines likely wish they'd opted for ViaSat (VSAT) - Get Report instead of Gogo.
Finally, Cramer is avoiding steel giant U.S. Steel (X) - Get Report . Like other depressed commodity plays -- like AK Steel (AKS) - Get Report and Freeport McMoRan (FCX) - Get Report , which he covered on Tuesday -- U.S. Steel will likely continue to struggle and analysts will continue to downgrade its stock.
"We don't talk about it enough, but globalization has wiped out our steel industry," Cramer said, noting that Chinese "dumping" will continue to depress steel prices.
Cramer answers viewers' questions in a daily segment with TheStreetTV. Send your questions to him on his Facebook (FB) - Get Report page, or on Twitter (TWTR) - Get Report . Send questions to him @JimCramer with the hashtag #CramerQ.
At the time of publication, Cramer's Action Alerts PLUS had a long position in AGN, FB, PYPL, TWTR and WWAV.