The stock market is being flooded with new initial public offerings and many of the best performers in the 2019 class aren't worth chasing at current levels, CNBC's Jim Cramer said Thursday.
"Given the big jumps in stocks like Zoom and Pinterest, and those weak numbers and forecast from Intel tonight, I'm starting to worry that this IPO cycle – especially the tech portion – may be reaching irrational exuberance territory," the "Mad Money" host said.
Cramer likes to see stock prices run higher, but the deluge of frothy IPOs is not a good sign in his eyes.
"The stock market's all about supply and demand. When you flood it with new supply, that puts real pressure on the averages," he said. "Every time we get another one of these deals that's engineered to be red hot, money managers need to sell something else to raise cash if they want to participate."
Cramer said his fear is that the deals will become less rewarding, leaving investors burned and turning against stocks as an asset class. He's even more fearful of that than low earnings, the U.S.-China trade war, or a hawkish Federal Reserve.
Get his full insight here
Stocks picks are locked in, and the clock is ticking after the close of CNBC's 2019 Stock Draft Thursday afternoon. Jim Cramer weighed in on which celebrity stock-pickers he's betting on to win, and offered tips for at-home investors to play along.
CNBC's main competition rolls from Thursday's close until the end of January 2020 and centers around long-term gains. But Jim Cramer suggested that at-home competitors playing the secondary, month-long contest should forget about diversification and dividends for the sake of the short-term game.
"If you're looking for a four-week trade it will be different from a four-year investment," he said.
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Cramer noted that Align Technology, which manufactures orthodontics products including 3D digital scanners and clear aligners, has been facing stiff competition in the space.
But CEO Joe Hogan shrugged of the notion, telling the host its product line is a matter of demand: some people would prefer clear aligners over affixing braces to their teeth.
"We're only 10% penetrated in that market, Jim, with 12 million customers overall," he said. "Secondly, we see with digital orthodontics an overall customer base of 300 million patients out there. So we see an incredible demand equation."
Watch the discussion here
Centene CEO Michael Neidorff said American government leaders need to move away from politics and start working on policies to improve health care for residents.
Some firms are making moves to address the complex issue.
"There are a small group of us, large companies … that are working together to try and help people understand how to access care, what makes for quality care, and what we're contributing to better health care," Neidorff said.
Catch the full interview here
Chipotle Mexican Grill is back and better than ever, Cramer said.
The restaurant chain's "surprising" move to name Brian Niccol as CEO could materialize as the "best" executive hire of last year, he said. Cramer said the company is now playing offense after grappling with a host of food safety issues over the years.
Niccol departed Taco Bell — a Yum! Brands property — in February 2018 for Chipotle. He's been lauded by investors for leading the company through its best year since 2013. Cramer also tipped his hat to CFO Jack Hartung, who he called the company's "stalwart."
"I mean, Chipotle just reported [a] quarter with 9.9% same-store sales growth. That's amazing," the host said. "It's incredible, given the prolonged downturn caused by these same health care concerns, as well as a perceived decline in quality and cleanliness."
Cramer breaks down how Niccol turned Chipotle around in seven steps here
In Cramer's lightning round, the "Mad Money" host zips through is responses to callers' stock picks in rapid speed.
Sarepta Therapeutics Inc.: "I like this company. They do really are kind of concentrated on one drug, so to speak, and I don't like one-drug companies. So even though I think the drug is great, [don't buy]."
Blackstone Group LP: "I'm going to have to take a pass at these levels."
DexCom Inc.: "I like Dexcom, I like Tandem. They both are down a lot. There's been a series of raids. People keep articulating the fact that these companies aren't doing that well, that is untrue. I don't know why they're raiding them. I do think that Dexcom … is doing very well."