Huawei CEO Ren Zhengfei laid out plans to bring more efficiencies to the organization. This included simplifying the reporting structure, cutting down on surplus staff, axing...Technologyread more
The bond market has entered a financial twilight zone, and at this point, there doesn't seem to be a smooth way out.Market Insiderread more
China has used both monetary and fiscal measures to lift economic activity as its trade war with the U.S. looks set to intensify in the coming months.China Economyread more
President Donald Trump said on Twitter he was postponing a scheduled meeting with Denmark's prime minister because of her lack of interest in discussing a possible sale of...World Politicsread more
"I think (rate cuts) will help, but whether they're going to be sufficient to counter the negative trade pressures and global growth slowdown and impact is debatable," one...Central Banksread more
Chinese overseas investment growth will likely slow or even decline in the next few years as risks around the world increase, according to new research by Moody's Investors...China Economyread more
The two countries want to smash the civil aerospace duopoly enjoyed by Airbus and Boeing.Aerospace & Defenseread more
Alibaba held a board meeting before its latest quarterly earnings release last week, during which the board decided to postpone the Hong Kong listing, Reuters reported.Technologyread more
Federal Reserve Chairman Jerome Powell is set to deliver his annual speech on Friday at the Jackson Hole, Wyoming symposium, where he's expected to provide more clarity on the...Asia Marketsread more
U.S. and Asian investors poured $3.7 billion into U.K. tech start-ups in the first seven months of 2019, research shows.Technologyread more
After Elon Musk touts Tesla solar on Twitter, Walmart sues the electric vehicle and clean energy company over store rooftop panels that ignited.Technologyread more
Fitbit came public as one of the hottest IPOs of the year on Thursday, immediately surging through the roof ,up 50 percent from its $20 initial price. And you know what? Jim Cramer thinks it could still go a lot higher.
"Even after this monster move higher, I think that Fitbit is still worth buying," the "Mad Money" host said. (Tweet This)
Fitbit is the No. 1 maker of connected wristbands that track health and fitness with approximately 85 percent market share in the U.S. Its products range from a $60 entry level wristband to track steps, distance traveled and calories burned to a full-blown smartwatch for $250.
So, why does Cramer love Fitbit? It all comes down to growth.
So far, its sales and earnings have been astronomical. It posted 175 percent revenue growth last year and grew its user base by 158 percent. The numbers were even higher for the first quarter of 2015, with revenue growth that more than doubled and gross margins up 50 percent.
What is best about Fitbit to Cramer though is that this company is all about growth that is actually profitable. The company has been cash-flow positive since 2013 and had positive earnings in 2014.
From the perspective of a new IPO, this is hugely important.
"The fact that Fitbit is profitable means we can actually value its shares versus other publicly traded companies based on simple price-to-earnings-multiple arithmetic," Cramer added.
And even after the incredible run that Fitbit had this week, Cramer still considers it to be one of the cheapest high-growth stocks he has ever seen. Ultimately, he thinks Fitbit's numbers will be much higher given the rate of acceleration that investors saw in the first quarter.
But what about the potential worries? Such as the one that the Apple Watch will eat into Fitbit's market share. This is a valid concern, as all of Fitbit's financials are from before the Apple Watch hit the market. Thus, the new competition could eat away at its fabulous growth.
Read more from Mad Money with Jim Cramer
Cramer Remix: Before strolling with Johnnie Walker
Cramer: Secret to unlock biotech riches
Cramer: Skepticism triggered the rally
Cramer is not worried, as Apple and Fitbit are geared toward two different types of customers. Fitbit's products range from $60 to $250, while the cheapest Apple Watch costs $350. It is an apples-to-Fitbit comparison here.
"I think there is room for many players here, and I also think all of these competitive worries are already baked into Fitbit's share price and then some," Cramer said.
So while there are risks out there for this hot new stock, Cramer thinks that the risks are far outweighed by the rewards. This is a real company with real earnings, and after doing the math, it's still a bargain for Cramer.