Jim Cramer’s 3 reasons why profitable tech stocks are getting hit

Cramer's 3 Reasons Why Profitable Tech Stocks Are Appreciating in the Market

CNBC’s Jim Cramer on Monday offered three reasons why tech companies, including those with strong balance sheets, are struggling in the stock market.

The “”Crazy money“The presenter, who is filming from San Francisco this week, reiterated his warning against companies that have lost money since the start of the year but acknowledged that even financially strong companies can feel hot.

He gives three reasons why that might be the case:

  1. The strong US dollar and European energy crisis are making companies more frugal in their purchases. “Companies are essentially creating products that their customers can live without in an increasingly difficult global economy,” Cramer said.
  2. The Federal Reserve may want stocks to fall. The central bank needs inflation to come down by any means necessary, which means markets could get worse, Cramer said.
  3. The company’s individual performances may have been missing. “I happened to think AdobeIt’s a great company, but its business is slowing down,” he said.

Cramer added that the jury is still out on whether the technology will continue to be crushed or if this is an opportunity for acquisition.

“However, has the sell-off gone too far or is this simply a protracted nightmare that won’t end soon? I mean, that’s the question,” he said.

Jim Cramer takes on the status of tech stocks

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