Jim Cramer on IBM: “I Like It Very Much, But It’s Up On a Spike”

International Business Machines Corporation (NYSE:IBM) was among the stocks Jim Cramer highlighted on Mad Money as he noted that the market has an appetite for stocks. A caller asked whether the company can generate sufficient earnings growth to justify its current valuation, given that the stock trades at or above $300. Cramer commented:

Oh, okay… look, I think you raised a really interesting question. You said it was up, down, up, down. This stock is up about 80 points in like a week. I think we gotta give it a chance. I want it to come down before I can give it my seal of approval. And I like it very much, but it’s up on a spike, and you know, I don’t recommend a parabolic move… It’s hardly ever worked.

Credit: IBM

International Business Machines Corporation (NYSE:IBM) provides software, consulting, and cloud and on-site technology solutions, along with financing to help clients use its products. During the May 7 episode, a caller asked Cramer whether the company’s stock was a buy, sell, or hold. In response, the Mad Money host said:

I want you to buy IBM. I do not understand why it’s all the way down here. I thought the quarter was actually really good. I think it’s been caught up with this idea that it’s got some software that people don’t like. That’s nonsensical. I think that Arvind Krishna is doing a remarkable job. And yes, I’ll give you the quantum, I’ll throw that in for free.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Disclosure: None. Follow Insider Monkey on Google News.