The red-hot software stocks of yesteryear are well off their highs, but it remains too early to call a bottom in the cloud plays, CNBC's Jim Cramer said Monday.
"There's been a lot of damage done, but given how much the stocks had run going into this sell-off, many of them could still experience a lot more downside before they start looking enticing," the "In a list of 75 tech stocks, Cramer noted that on average they are down 37% from the highs. Despite the decline, their valuations remain elevated when compared to corporate outlooks.
Meanwhile, bond yields have steadily risen, making tech shares and their future earning potential less attractive. The yield on the benchmark"Without a major decline in interest rates, I think the cloud cohort will continue to struggle, and there's no hurry to do any buying until we get to lower levels for most, if not all, of these stocks," Cramer said.Some software stocks, however, are nearing levels that are enticing.
Cramer got the market wrong all the way 2 week ago he recommended AMD at top , it was nice to warn us at top but not now after the event and big drop in the tech stocks to warn us , stop manipulate the market .
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