CNBC’s Jim Cramer on Wednesday revisited some of the highly anticipated IPOs of 2020.
In reassessing his stances on the IPOs, or initial public offerings, the former hedge fund manager made fresh calls on the stocks after months of trading.
“It’s hard not to chase these red-hot IPOs right out of the gate,” the “Mad Money” host said, “but as we saw from the class of 2020, and from Coinbase today, you’ll often get a better price if you’re patient enough to let them pull back a few days, few weeks or even months later.”
Below is a round-up of his recommendations on almost a dozen of newly public stocks, and their Wednesday closing prices.
- nCino, $70.02: “You have got my blessing to dip into it right here, but there’s no rush and I wouldn’t put on a serious position until it retreated to the mid-$60s.”
- Snowflake, $229.14: “I’d love to get more bullish on Snowflake, but it’s out of step with this market— so why not wait for it to pull back … to just 50 times sales, which will put the stock at $190 where I would buy.”
- JFrog, $51.96: “The valuation’s a lot more reasonable at these levels, but again there’s no rush with these software stocks. I’d like it even more below $43, or 20 times sales, which is roughly in line with last month’s lows.”
- American Well, $17.23: “As the great reopening trade’s gone into full swing, well this thing’s lost more than two-thirds of its value. Even down here, even at $17, I’d stay away from Amwell because it’s too much of a lockdown stock.”
- GoodRx, $37.67: “You’ve got my blessing to speculate in this one now that it’s been knocked down to the high-$30s. Any pullback from here I am saying it’s a buying opportunity.”
- Asana, $33.42: “This one’s been a real rollercoaster, but I didn’t like the fundamentals last year and, you know what, I still don’t. Can’t justify paying nearly 18 times sales for a company with a 38% growth rate.”
- Lemonade, $88.60: “I love Lemonade, the company … but they’re losing tons of money and the stock sells for nearly 50 times sales … Can’t justify paying more than $75 for this $89 stock.”
- Unity Software, $101.12: “Maybe my biggest miss from the class of 2020 was Unity Software … At this point, though, you know what, I’d rather own the newly public Roblox, which is profitable, unlike Unity, and trades at a substantial discount.”
- Palantir, $23.70: “I think it’s too much of a black box to get a real read on the business, so be careful. I’d feel a lot more confident if it pulls back below $20.”
- DoorDash, $143.65: “I’m not really interested in DoorDash here. It’s a lockdown stock with too many competitors.”
- Airbnb, $176.43: “Airbnb will soon be hit with a big lockup expiration, meaning lots of insider selling. The stock’s currently at $175; I’d start nibbling if it came down below $157 and then back up the truck if you can get it closer to $117.”
