Jim Kramer of CNBC warns that investors need to be cautious about how they approach the market next week.
With several companies set to go public in the coming days, there may be new reasons for volatile trade.
“When we get a flood of initial public offerings, it’s usually a bad sign for the rest of the market,” the Crazy Money host said Friday, “because money managers don’t have all that new money, so they have to sell farms. who are like these stocks to make a purchase. “
After already packing 201
“Given that September tends to be a bad month for the market,” he said, “I urge you to be prepared as these deals start to flow.”
The following is an overview of Cramer’s reactions to upcoming initial public offerings:
Snowflake“This thing is going to be too hot unless you can get a piece of the actual deal that would be fantastic,” he said. “Otherwise it could be too expensive.”
Unity Software: “It’s not profitable yet.”
JFrog: “This is one of the most lucrative corners of the cloud-based software space.”
Sumo Logic: “I’m not familiar with this, but the important thing here is that you already have four cloud deals coming up next week, and that makes some portfolio managers sell current cloud holdings. [because] they must make room for the new. “
Amuel: “Given that the merger of Teledoc with Livongo, a digital healthcare coach, Amwell could enter the market directly as the only publicly traded pure telemedicine game. However, it is still far from profitable.”
GoodRx: “At a time when people pay a lot of attention to their health and bank accounts, GoodRx seems to be a winner. But again, it all depends on the price – you don’t want to buy something that comes too hot.”
Palantir (direct list): “Palantir is a fast-growing business, so it can just work, although recent reports show that early interest was not as strong as the company or anyone else expected.”
Asana (direct list): “Asana has a great growth rate – 82% in the last fiscal year, very few have it – but it is also a constant loser of money. I think it will be a good test of what this market values. “