Cramer: Stay away from GoDaddy, Etsy

Investors should not buy into the hype of GoDaddy's initial public offering, CNBC's Jim Cramer said Wednesday.

"I think it's telling that it's not making money," Cramer said on "Squawk on the Street." That's code for 'what the heck are they doing?'"

Cramer made his remarks ahead of the Internet domain registrar's IPO. GoDaddy priced its IPO at $20 per share, above the estimated range of $17 to $19. Its opening trade came in at $26.15 per share.

The company went public on a day in which U.S. equities kicked off the year's second quarter down nearly 1 percent. The Dow Jones industrial average shed about 130 points in the first hour of trading.

Click here to see where the markets are trading now.

Cramer added investors should also steer clear of Etsy's IPO. The e-commerce company was scheduled to launch its pre-IPO roadshow on Wednesday. On Tuesday, it priced its shares at $14 to $16.

"I was looking through Etsy," Cramer said. "They are selling 16 million shares. I find this deal quizzical [because] the CEO, Chad Dickerson, in a town hall two years ago, said the company's been profitable since 2009. The problem is the prospectus shows operating losses since then."

Read More The IPO business: an anemic Q1, a cloudy Q2

Go Daddy CEO Blake Irving and NASCAR driver Danica Patrick at GoDaddy's IPO at the NYSE, April 1, 2015.
Brendan McDermid | Reuters
Go Daddy CEO Blake Irving and NASCAR driver Danica Patrick at GoDaddy's IPO at the NYSE, April 1, 2015.