Cramer says the stock could bounce on a technical basis, but he points to Dollar Tree (DLTR) and Dollar General (DG) , the latter of which was upgraded twice on Monday because of its bid to merge with Family Dollar (FDO) . Cramer says Walmart is left out of the bottom and the top, so he does not want to own the stock until he sees some strategy that indicates the company has figured out how to operate dollar stores and high-end stores. He needs momentum in order to own a retailer, and Walmart does not have it in his opinion.
The next question asks about Yelp (YELP) . The stock was at $60 and went to $70. The company reported a very good quarter and rose to $75, but then dropped into the $60 range again and some investors felt the company was not expanding its local listings quickly enough. Cramer disagreed with this and thinks Yelp has gone for gross margins. The company made money, and Cramer believes in CEO Jeremy Stoppelman. Cramer suggests investors buy the volatile stock when it drops $2 or $3.