‘Don't Be a Hero' — Cramer Says Unprofitable Stocks May Have Even More Room to Fall

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“It’s an unforgiving time. We’re back to the dynamic that defined January through mid-June,” the “Mad Money” host said.

that the Federal Reserve's tightening cycle necessitates a shift in approach: out with the high-flying tech stocks that prioritized revenue growth over profitability, and in with more slower-growing — some might even say boring — companies that make money and return some of it to shareholders via buybacks and dividends.

"Wall Street ... loves the latter and loathes the former. And a lot of people still don't get it," Cramer said. While market sentiment improved from mid-June to mid-August, Cramer said's nearly 40% decline Thursday is evidence that money-losing companies are still out of style in the Wall Street fashion show.

"Okta's now a pariah, along with hundreds of other companies — especially the ubiquitous and, in some cases, ruinous software companies — that embraced the same strategy: pursuing revenue growth at the cost of profitability," Cramer said.

 

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