CNBC’s Jim Cramer said Wednesday that shares of GameStop and AMC Entertainment are within buying range, but cautioned investors who got in on the stocks lower to protect profits from a big run.
“I’m not against [buying] GameStop or AMC at these levels. GameStop’s currently below where I told you to ring the register in January,” the “Mad Money” host said.
GameStop stock moved 0.85% higher on Wednesday to $302.56, and AMC ended the session at $49.34, down 10.37% from Tuesday’s close.
“If you’ve ridden them up from much lower levels, take a little off the table,” Cramer said. “These stories could always get dinged.”
Shares of the beleaguered companies have shot up as part of the Reddit-fueled retail trade. GameStop has skyrocketed more than 1,500% so far in 2021. AMC has rallied more than 2,200% through Wednesday.
GameStop, which reported better-than-expected results for its first quarter after the market close, was down about 7% in extended trading. The company also announced Wednesday it has hired former Amazon e-commerce executive Matt Furlong as its new CEO.
“These companies now have the ability to reinvent themselves because higher stock prices have allowed them to raise capital,” Cramer said.
AMC has used the momentum to issue new shares and raise capital, and GameStop said Wednesday it would consider selling 5 million shares.
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