Cramer: We’re in a loopy market the place low-volume shares truly make sense
CNBC’s Jim Cramer called the market “crazy” on Monday because investors would ordinarily not benefit from chasing soaring stocks like Zoom and Snowflake, which trade at an off-the-chart multiple for sale.
Cramer said Zoom Video Communications, which trades at about 50 times its revenue, and cloud company Snowflake, which trades at about 100 times its revenue, are now worth owning. He advised people to buy and invest in stocks on the assumption that the coronavirus pandemic won’t go away anytime soon.
Cramer contrasted Zoom’s video conferencing business with the tough ride in the oil industry as people don’t drive that much.
“Zoom is doing three times what it did three months ago. And I know it’s 50 times the sales. But at the same time, I don’t want growth by cutting and hopefully more oil per rig. But I want growth that pure and pure is dominating, “he said.
Cramer referred to Dr. Scott Gottlieb on Monday, who said the “hardest part” of the coronavirus outbreak in the US is probably still ahead of us. “There’s really no stopping here,” said the former FDA chief, because treatments and a possible Covid-19 vaccine will not be available for a while.
In a comment during his morning appearance on Squawk on the Street, Cramer said, “Do I really want to be in a world where I think Covid will end and we will start driving like crazy and oil gets.” Go up? I am not buying it. I’m not buying this world any better than ever. “
According to the Johns Hopkins University, the number of confirmed coronavirus cases worldwide was over 40 million as of Monday, given the flare-ups in the US and Europe.
After adjusting for population, Europe reported new cases of 187 infections per million people daily, based on an average of seven days, compared to the United States of 162 per million.
Across the country, coronavirus cases grew 5% or more in 38 states on Friday. This comes from a CNBC analysis of the data compiled by Johns Hopkins, which uses a weekly average to smooth the coverage. The nation is seeing an average of around 55,000 new cases each day, up more than 16% compared to a week ago.