Jim Cramer warns investors still betting on high-growth tech stocks: ‘I don’t think it’s going to work’

CNBC’s Jim Cramer on Thursday cautioned investors that buying the dip on high-growth tech stocks is a losing strategy in today’s turbulent market.

“The era of beat and raise and buy no matter what … is over for the formerly high-flying growth stocks. There’s still plenty of other stocks out there, but if you’re still betting on these bouncing back … I don’t think it’s going to work,” the “Mad Money” host said.

Growth stocks are particularly susceptible to inflation, Cramer said, because it hits the value of future earnings.

“You may think these companies are the greatest things since sliced bread, but the pros know not to pay as much for unprofitable sliced bread when there’s an inflation spiral,” the host added.

Cramer said falls in shares of Okta and Snowflake — whose chief executives were both on “Mad Money” Wednesday evening — signified the last straw for investors who purchase beaten-up high growth tech stocks and try to cash in later.

Both stocks dropped on Thursday after reporting fourth-quarter earnings the day before. Okta shares were down 8.06% while Snowflake plummeted 15.37%.

“Given that there are so many momentum camp followers and so many ETFs centered on the [cloud and cybersecurity] businesses that are covered by [Snowflake and Okta], these two names did literally bring down the proverbial houses” of dip buyers and high-growth stock chasers, Cramer said.

The host added that he believes many such buyers have already exited the market.

“The momentum is gone, the charts are broken. … They’ve lost too much money,” he said.