December 1, 2023

CNBC’s Jim Cramer said Wednesday that GameStop and AMC Entertainment’s shares are in the buy range, but warned investors who got deeper into the shares to protect profits from a big run.

“I’m not against [buying] GameStop or AMC on these levels. GameStop is currently downstairs where I told you to call the box office in January, “the Mad Money host said.

GameStop stock rose 0.85% to $ 302.56 on Wednesday, and AMC closed the session at $ 49.34, 10.37% less than Tuesday.

“When you’ve ridden her up from much lower levels, take a little off the table,” said Cramer. “These stories could always be tarnished.”

The struggling companies’ stocks have soared on the Reddit-fueled retail market. GameStop has soared more than 1,500% so far in 2021. AMC has rallied more than 2,200% as of Wednesday.

GameStop, which reported better-than-expected results for its post-market first quarter, declined about 7% in expanded trading. The company also announced on Wednesday that it has hired former Amazon e-commerce manager Matt Furlong as its new CEO.

“These companies now have a chance to reinvent themselves because higher stock prices have allowed them to raise capital,” said Cramer.

AMC has used the momentum to issue new shares and raise capital, and GameStop announced on Wednesday that it is considering selling 5 million shares.