Jim Cramer on how 9 ‘pandemic plays’ that rallied Monday will perform going forward

CNBC’s Jim Cramer on Monday said that some of the pandemic-era winners that rallied on Monday will be able to hold onto their recovery while others will flounder.

“When you see all the so-called pandemic plays roaring, without any kind of upsurge in Covid, you’ve got to take them on a case-by-case basis,” the “Mad Money” host said. “Some of these will be one-and-done moves, but I think the higher-quality names have overshot their downside and can bounce for more than one day before they run out of steam,” he added.

The tech-heavy Nasdaq Composite gained 1.9% on Monday following news that Tesla CEO Elon Musk purchased a 9.2% passive stake in Twitter. The Dow Jones Industrial Average rose 0.3%, and the S&P 500 advanced 0.8%, both increasing for the second consecutive session.

To illustrate his point, Cramer selected nine companies that rallied on Monday and offered his thoughts on each one. 

Here is his analysis of each company:

Peloton

“With [CEO Barry] McCarthy at the helm, I am bullish on Peloton. Even if this quarter is weak, I think it’s worth owning as a long-term bargain,” Cramer said.

Zoom 

Zoom “simply must do something besides being a well-managed video conferencing company. … If they remain as they are, then I say count me out,” Cramer said.

DocuSign

Cramer said he also believes DocuSign needs to make a change in order to perform well post-pandemic. “With Covid receding, more deals will now be done face-to-face,” he said, adding he believes the stock will continue falling.

Roku

“Unless Elon Musk takes a huge position here, I’m betting [Monday’s rally] will be a one-day move,” Cramer said.

DoorDash

“I actually have high hopes for this company long term. … But because it’s losing money, I can’t recommend the stock,” Cramer said.

Shopify

The company “works longer term“ but needs to grow into its market cap in order to succeed, Cramer said.

Etsy

Cramer said he believes Etsy stock should be priced higher than it currently is.

PayPal

“This one’s a loser and will remain a loser,” Cramer said, adding that PayPal’s growth is decelerating.

AMD

The stock is “not ridiculously cheap but … AMD is one of the best semiconductor names, a very enterprise-oriented business at a time when enterprise is the strongest of any of the customer cohorts,” Cramer said.

Disclosure: Cramer’s Charitable Trust owns shares of PayPal and AMD.