Fitbit took a major beating on Tuesday, down almost 9 percent. However, unlike many investors, Jim Cramer refuses to jump ship.
"Put simply, Fitbit is not down because of anything the company said about the business, which is healthy and growing," the "Mad Money" host said.
Rather than focus on Fitbit's stellar earnings beat, investors sold the stock with the news of a secondary offering that would put an additional 14 million shares from insiders and 7 million from the company itself into the market. Cramer thinks this could help to reduce the large number of short sellers that have existed in the stock since it came public in June.
Fitbit CEO confirmed in an interview with CNBC on Tuesday morning that the company is spending aggressively on research and development in order to meet the requests of individual customers. Cramer found this important, because this spending will set Fitbit apart from the fad of GoPro.