Market Recap With Jim Cramer and TheStreet: Salesforce, Zoom, Workhorse and AMC

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TheStreet’s Jim Cramer says that if you’re a meme trader, right now, the world is your oyster. 

“AMC Entertainment’s  (AMC) – Get Report chief executive Adam Aron, for one, is a man with an oyster. He can grow into his market cap and refinance his debt, and the next thing you know he has a real growth company,” Cramer wrote Tuesday on Real Money. “What’s crucial is that after this genius equity sale, he finds another savior. And another. With each one, the story grows stronger.” 

Cramer also wrote about how Aron set the stage for Ryan Cohen to make GameStop  (GME) – Get Report into completely new company. “He, too, can do a deal with a money manager to become a different company entirely,” Cramer said.

Here are the top 10 videos this past week:

Avoiding Meme Stock FOMO: Experts Tips, Advice

Investing FOMO is always going to take place — whether at the top or at the bottom — when there are huge moves in a stock. This is definitely the case with some of the meme stocks. So how can investors avoid it?

Jeff Marks, senior portfolio at Action Alerts PLUS, and Chris Versace, Real Money contributor, explain how they avoid investing FOMO.

“You have to focus on the fundamentals and you have to understand why the stock is going up — purely on speculative behavior or based on true fundamental news,” said Marks. 

Versace added, “One of the things that I try to do is to really understand the history of what’s going on — the history of how the stock is traded in the past, the catalysts that allowed it to either peak out or crater, and the valuations they tend to peak out or bottom out at.” 

Why This Analyst Is Picking Salesforce Over Zoom

Still feeling that Zoom  (ZM) – Get Report burnout? The company posted earnings, with TheStreet’s Martin Baccardax writing that Zoom’s non-GAAP earnings for the three months ending in April were pegged at $1.32 per share, a five-fold increase from the same period last year as revenues surged 191% to $956.2 million as its customer base of companies with more than 10 employers rose 87% to just under 500,000.

“Zoom hasn’t been a name I’ve been focused on because it trades at such a high price-to-sales multiple and, if you look at the growth numbers, Zoom just delivered. They will grow into that figure but I think it will take a lot more time,” said Jeff Marks.

“When it comes to the big, high-multiple software stocks that I’ve been interested in and the one we currently own at Actions Alerts PLUS, that’s going to be Salesforce  (CRM) – Get Report,” Marks noted. 

What This Expert Wants to See From the Federal Reserve

Real Money contributor Stephen “Sarge” Guilfoyle discussed the Federal Reserve in his morning Market Recon column.

“I think it’s certainly time to pull back on the asset purchase program and get out of the $13.75 billion corporate debt. End that program — they don’t need your help anymore. But the housing market also doesn’t need their help anymore. So the Federal Reserve can pull back on the $40 billion worth of mortgage-backed securities all the way to $0,” Guilfoyle said. 

Investing In a Reopening Economy

Amid the reopening of the U.S. economy, inflation concerns are part of the equation for investors looking to trade on this new market trend.

“Real Money’s Real Talk: Investing in a Reopening Economy” webinar assembled some of Real Money’s most experienced columnists to discuss their favorite stocks for a post-pandemic, rebounding economy.

Chris Versace, the co-manager of Trifecta Stocks and Stocks Under $10, and Ed Ponsi, managing director of Barchetta Capital Management, point out the obvious signs of inflation and their picks for stocks that can take advantage of this trend, including those in the financial sector. 

Check out more insights and investment ideas from our other Real Money contributors.

What This Analyst Likes About Etsy’s Depop Acquisition

Etsy  (ETSY) – Get Report, which has seen a boom in business from the pandemic, is buying Depop for $1.63 billion. “We are simply thrilled to be adding Depop — what we believe to be the resale home for Gen Z consumers — to the Etsy family. Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe in the significant potential to further scale,” said CEO Josh Silverman.

“I like what CEO Josh Silverman had to say on the strategic rationale of the deal. Etsy has a great playbook of creating value and they’ve had plenty of success with past acquisitions, and I think this deal fits their playbook exactly,” said Jeff Marks.

“You have to remember that the Etsy stock was one of the best performers in the S&P last year and it’s come significantly off its highs regardless of a huge influx of handmade mask sales during the pandemic. But I like the deal so it would be worth taking a closer look at investing in,” Marks added.  

Sell BlackBerry? Watch This Portfolio Manager Explain His Game

Real Money‘s Chris Versace and Action Alerts PLUS senior portfolio analyst Jeff Marks joined TheStreet Live to talk about BlackBerry  (BB) – Get Report

The stock is no AMC, but it is a favorite of the Reddit meme stock crowd. So what does Versace think of BlackBerry at these levels?

“Earlier in the year, Blackberry was one of those meme stocks, along with AMC and Gamestop, and it shot the lights up when it was up near $25 which is where we unloaded it in the Stocks Under $10 portfolio and bought it back as it came back to Earth. We own it here and I like it for the long-term given the confluence of cybersecurity,” said Versace. 

Musk, Tesla and the SEC: Advice From a Former Trader

The SEC sent correspondence to Tesla  (TSLA) – Get Report about Elon Musk’s tweets, according to a new report. The correspondence to Tesla in 2019 and 2020 from the SEC said Musk’s tweets about solar roof production and the stock price hadn’t been reviewed by company lawyers as had been agreed in a $40 million settlement between the company and agency in 2018, The Wall Street Journal reported. 

Under that court-approved settlement, Musk and Tesla each paid $20 million to resolve regulatory charges arising from an earlier Musk tweet that the company was on the verge of being taken private.

So, what does Real Money’s Stephen Guilfoyle think about Tesla? “I think Tesla is in a little bit of trouble, to be honest with you,” he says. 

Why This Trader Got Out of Workhorse and Into AMC

Workhorse  (WKHS) – Get Report has picked up steam in the market as a meme stock. In fact, TheStreet Live’s co-host Stephen Guilfoyle discussed why he sold out of Workhorse for a new position in AMC  (AMC) – Get Report.

“Workhorse was popular in opening hours, but I don’t think it’s a good company and I don’t think they’ll make money. I really used it as a trading vehicle. I bought it earlier this morning and as soon as it started to give up some of those gains, I made my way out of it,” Guilfoyle said

The Digital Transformation: Young Investors and Cryptocurrency

Will young investors start to just invest in companies that have cryptocurrency on their corporate balance sheet?

Research analyst with Action Alerts PLUS Zev Fima doesn’t think that when it comes to the equities side of investing, young investors are only targeting companies with cryptocurrency on the balance sheet. But, he does think there is a draw to a cryptocurrency — part of it is the idea of getting fast money. 

Curious about what else Jim Cramer and his team at Action Alerts PLUS are watching in the markets? Watch Cramer’s exclusive members-only Daily Rundown show on Action Alerts PLUS following TheStreet Live.

What Is SafeMoon and Is It a Safe Bet?

The latest Dogecoin craze has fueled interest in many other new cryptocurrencies and SafeMoon is one of the largest. 

SafeMoon is a BEP-20 token launched on the Binance Smart Chain (BSC) ecosystem on March 8, 2021, and has quickly risen to be Binance’s third-largest token by market capitalization.

TheStreet’s Crypto Reporter Luke Conway notes in a recent article that “SafeMoon currently ranks 202 on coinmarketcap with a market capitalization of $2.9 billion and a circulating supply of 585 trillion tokens.”

Salesforce is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells CRM? Learn more now

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