Mad Money

Cramer: Suddenly growth stocks are in fashion

Wall Street changes on a nickel: Cramer

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

Wasn't it yesterday that the Street wanted nothing to do with high multiple growth stocks?

Jim Cramer is pretty sure it was.

Yet, on Thursday,. Ironically, follows the same formula that Wall Street has rejected for months. "It has explosive sales growth and seeks to dominate its category no matter the cost," Cramer said. Even with $11.5 billion in fiscal 2013 revenue, the company posted a net loss of $8 million.

Cramer realizes it might have been excitement about the forthcoming Alibaba IPO that drove enthusiasm for, or it may just be the general allure of China's e-commerce industry.

But in this case, the reasons pale as compared to the price action. Demand was significant with shares gaining 10 percent on their first day of trade.

Amenic181 | iStock / 360 | Getty Images

"The appetite for the deal says to me there's been a sea-change in IPOs," Cramer said. "For the last two months, this market has spat at initial public offerings for the simple reason that they've consistently lost you money. So when JD roared out of the gate today, it totally changed the widely held impression that when you buy the stock of a pure growth company, you're doomed."

And through the session, the interest in growth extended to many other stocks, too, with and other software-as-a-service stocks catching a bid immediately thereafter.

"In turn, investors started buying other high growth stocks, such as Yelp, Google and Zillow."

By the close, Cramer said it appeared that "growth had come back in fashion on Wall Street."

Read more from Mad Money with Jim Cramer
Cramer: How stupid can this market be?
Cramer's 'miraculous' growth companies
Niche stocks you shouldn't overlook

However, that doesn't mean growth stocks have gotten the all-clear. Hardly.

Fashion is notoriously fickle, and it's no different with the Wall Street fashion show. What's in one day is out the next.

And as popular as growth was on Thursday, it could be akin to a polyester three-piece suit on Friday—very much out. "Didn't I tell you this market was crazy?!!"

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