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Stop Trading!

Monday, 14 May 2007 | 3:26 PM ET

Starbucks and Whole Foods may be trendy on Main Street, but they seem to be falling out of favor on Wall Street, Cramer pointed out today on Stop Trading!. Both stocks are “very overvalued with a slowing growth rate,” he said, and that’s why they’re dropping in price.

Stop Trading!
Mad Money host Jim Cramer discusses his stock picks of the day with CNBC's Erin Burnett

“It is not anything they’re doing wrong, it’s just they’re not doing everything as right as they used to,” Cramer told Erin Burnett, but she wanted to know about those analysts who are predicting SBUX will make it to $42. That’s just wishful thinking, Cramer said. “I can’t give them the benefit of the doubt until they start putting some better quarters together.”

In technology, eBay launched a joint venture with Wal-Mart that will put Skype-certified hardware in the retail giant’s stores. Finally, eBay is putting some of the money it raised in share buybacks toward building the business, Cramer said, calling Skype an “undermarketed brand.”

“I think that eBay is going to be the next leader, after Amazon, in the online space,” Cramer said. He thinks the stock is about to jump. Cramer reiterated his favorable call on Wal-Mart, whose stock has persevered despite recent negativity.

Charles Schwab reported that its clients’ assets are up 17%, but at the same time actual trades are down 12%. Cramer blamed this on high interest rates. Investors are sitting on the sidelines, he said, waiting to make their move.

Questions? Comments? madmoney@cnbc.com

  Price   Change %Change
AMZN
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EBAY
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SBUX
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SCHW
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WMT
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