"How do you go from $2 to $22 in nine months?" the "Mad Money" host wondered on Wednesday. "Simple: this rally is all about the rise of these insanely popular battle-royale games like Fortnite and PlayerUnknown's Battlegrounds."
Thanks to either stellar planning or sheer luck, Turtle Beach happened to release the first Xbox-compatible wireless headset in 2017 just as the battle-royale craze was kicking off. Gamers who wanted to communicate with their fellow players flocked to Turtle Beach's products, sending the company's revenue through the roof.
"That's how you get a 1000-percent rally," Cramer said. "It just so happens that Turtle Beach makes the most popular headset that's used with the most popular video game around at the moment."
But Cramer wasn't sure the hype could last. He reminded investors of when shares of Turtle Beach almost reached the $90 level in 2013 before collapsing and ending up in the single digits.
"This is a boom and bust story. … If you own this one, here's what I think you should do: you should ring the register," Cramer said, recommending Logitech instead. "I get that people want something close to a pure play on Fortnite – which I think, by the way, is peaking – but I can't recommend a company that makes headphones after its stock has run from a buck and change to $22."