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These stocks stuck in limbo: Jim Cramer

(Click for video linked to a searchable transcript of this Mad Money segment)

Jim Cramer is convinced that the market has no idea what to do with these stocks.

"They're in limbo," said Cramer. "And I think you should use any prolonged bounce to sell, because limbo is no place to be."

The "Mad Money" host was talking about hard to value, high growth stocks.

He says sentiment largely shifted in the market back in February, when Salesforce.com reported earnings.

Viorika Prikhodko | E+ | Getty Images

"Until that time, growth oriented money managers were conditioned to buy more stock when these companies beat on the top line and raised revenue guidance. However, Salesforce.com did precisely that in the last week of February, yet it all turned."

That is, the pattern broke, with investors no longer willing to assign Salesforce an even higher valuation.

"Meanwhile, Amazon had been rallying endlessly on the same playbook, an increase in revenues generating an increase in market cap. But that, too, waned, right along with Salesforce."

Cramer says ever since the market lost Salesforce.com and Amazon, the two bellwethers of high-multiple growth, it couldn't figure out how to properly value the group, broadly.

Therefore, since that time the path of least resistance has been lower, even though the long-term prospects of these companies appear unchanged.

Cramer says the price action in Shutterstock captures the mood of the market perfectly. "Shutterstock is an excellent company, with a terrific business that's been growing at an astounding 40 percent clip."

Until February shares had marched steadily higher since October 2012.

However, as of late February shares took a sharp turn lower. Again, that's the period when the market decided it didn't want growth—it wanted earnings. And since that time, shares of Shutterstock have declined to $67 today from about $100.

"That says to me, with the average stock selling for 17 times earnings, the market has no idea what to do with Shutterstock, which, even at current levels, still sells for 67 times earnings."

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Cramer thinks the lesson is clear.

"When the market doesn't know what to do with a stock, that stock gets sold down, and down, and down." And currently the market doesn't know what to do with high-multiple growth stocks with relatively limited earnings.

"You can put every high-flier through this ringer. Who knows what to pay for them if the market no longer cares about revenue growth? The only answer is less," Cramer said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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