GameStop (GME) - Get Report  shares are down nearly 12% Monday after the company missed on third-quarter earnings and revenue estimates.
"GameStop has a problem," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment. Many of this year's hottest games, including Star Wars Battlefront, Call of Duty Black Ops 3 and Assassin's Creed Syndicate, were all released after the quarter had ended. 


GameStop GME data by YCharts

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This caused the company to fall short of Wall Street's expectations, he said. It's noteworthy that despite the miss the company did not lower its full-year guidance, perhaps implying it plans to make up for its lower-than-expected third quarter with a strong fourth quarter. 

Investors should keep an eye on the stock because bullish investors may start buying, squeezing the big short interest out of the name, Cramer said. 

Elsewhere in the market, Cramer highlighted the rebound in shares of Chipotle Mexican Grill (CMG) - Get Report -- a stock he covered in greater detail earlier during "Mad Money."

He was also disappointed with the price action in shares of Action Alerts PLUS holding Allergan (AGN) - Get Report , which is down 2.5% despite official confirmation the company will merge with Pfizer (PFE) - Get Report .

At the time of publication, Cramer's Action Alerts PLUS had no a long position in AGN.