CNBC's Jim Cramer issued a warning to investors on Thursday about another IPO that he believes is overhyped.
The "Mad Money" host, who earlier this week called Peloton "a way to hang your towels up," blasted the soon-to-be new stock before it opened on the Nasdaq for its first day of trading as a public company.
"It's not a flash in the pan, but it's not something people should be so excited about, because this is how people get hurt," Cramer said on "Squawk Box" on Thursday.
"This is the kind of thing that will be exciting for today, tomorrow. And then I think we're going to look back and say, 'What were we thinking?'" he predicted.
On Wednesday evening, Peloton priced its initial public offering at $29 per share, the high end of the expected range. The IPO raised $1.16 billion, valuing the company at $8.1 billion.
The stock opened at $27 per share. It closed at $25.76.
In an earlier interview on "Squawk Box," Peloton Interactive co-founder and CEO John Foley said it could have been priced even higher. "We think we generally left something on the table in terms of pricing," he said. "I feel like we weren't greedy."
Cramer sees it differently. "People get very excited about a stock like this. They shouldn't be. I wish this thing were priced at like $22, $23 and went higher," he said.
Peloton describing itself as more than a high-end bike and treadmill maker is dubious, Cramer suggested.
Foley said Peloton is a media company, in addition to an exercise machine, technology and subscription company. "To the extent that we stream close to 1,000 hours of live television programming around the world every month, it's hard not to say we're a media company as well," he said. "I mean, this is original programming. We have thousands of classes on demand and we have almost 1,000 live classes every month."
"It's great they can portray all these things," said Cramer. But at the end of the day, he argued, "It's a company that's an exercycle."
"My wife has it. She regularly hangs laundry on it, which is terrific because I don't want the laundry in my closet," said Cramer, in a twist on Monday's "hang your towels up" hyperbole.
However, on a serious note, he said, "I just don't want people to lose money."
Peloton was not immediately available to respond to CNBC's request for comment on Cramer's remarks.