Could Money Leaving AMC Entertainment And GameStop Be Healthy For The Market? Jim Cramer Weighs In

If AMC Entertainment Holdings Inc AMC and GameStop Corp. GME continue to go down, a lot of the money that came into the market in June will disappear, Jim Cramer said Thursday on CNBC's "Squawk Box."

The Reddit traders or "memesters" have broadened the group of stocks they are targeting, Cramer noted.

Some of the runs in stocks have been so ridiculous that the government needs to come out and say "We're getting a little upset with the speculation," he said. 

If AMC Entertainment and GameStop continue to fall, the downward pressure on the market will continue to increase, but such would be a good thing for the markets, Cramer said. 

"That's the kind of downward pressure that may actually be like pruning a tree — it's going to grow back faster," Cramer told CNBC. If the money transitions into companies that are actually doing well, it will be healthy for the markets, he added.

Related Link: How Many In WallStreetBets Community See GameStop, AMC, Clover Health As 'Completely Different Plays'

Price Actions AMC Entertainment has traded as high as $72.62 and as low as $1.91 over a 52-week period. GameStop has traded as high as $483 and as low as $3.77 over a 52-week period.

At last check Thursday, AMC Entertainment was down 3.91% at $43.26, while GameStop was down 1.03% at $188.68.

Photo by samantha celera from Flickr.