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

Cramer's 3 reasons why profitable tech stocks are losing popularity in the market

CNBC’s Jim Cramer on Monday cited three reasons tech firms, including those with strong balance sheets, are having trouble in the stock market.

The Mad Money host, who is filming the show this week from San Francisco, echoed his warning about loss-making companies from earlier this year, but acknowledged that even firms with strong financials feel out of place.

He gave three reasons why this might be so:

  1. The strong US dollar and the energy crisis in Europe are forcing companies to save on purchases. “Essential companies are making products their customers can live without in an increasingly tough global economy,” Cramer said.
  2. The Federal Reserve may want stocks to fall. The central bank needs inflation to come down by all means, which means the market could get even uglier, Cramer said.
  3. Individual performances of the company could not be enough. “I think Adobe is a great company, but its business is slowing down,” he said.

Cramer added that a decision has yet to be made on whether tech will remain subdued or if it is an opportunity to buy the fall.

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

Jim Cramer evaluates the health of tech stocks

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