Stock Market Today With Jim Cramer: We Have Too Many IPOs

Stocks declined Wednesday as Wall Street again weighed the prospects for a coronavirus relief package.

The Dow fell 105 points, or 0.35%, to 30,068, the S&P 500 declined 0.57% and the tech-heavy Nasdaq was down 1.2%.

TheStreet’s Katherine Ross discussed breaking news in the stock market. Cramer spoke about DoorDash and other soon-to-be-launched IPOs, FireEye’s hack and the $600 stimulus check in the latest coronavirus aid package.

FireEye: Buy Or Sell?

Cybersecurity firm FireEye  (FEYE) – Get Report was hacked Tuesday with the intruders stealing tools that some of its security officials use to protect data. 

Cramer said he does not like this stock. “It’s old technology and nothing new. Now we have this happen. I like cloud-native companies including Crowdstrike  (CRWD) – Get Report, Okta  (OKTA) – Get Report, Zscaler  (ZS) – Get Report. In terms of just an aggregate, I like Palo Alto Networks  (PANW) – Get Report, its cloud business is growing incredibly fast. But I’m not a guy who wants just cybersecurity.”

Upcoming IPOs

Shares of DoorDash soared during their first day of trading Wednesday after the “gig” company completed one of the biggest initial public offerings of a busy year.

Cramer said it’s not good when a huge amount of supply hits the market. “We’ve got DoorDash  (DASH) – Get Report, Airbnb  (ABNB) – Get Report, and then Robinhood. They are just coming and coming. When they do that they eventually overwhelm the market as we remember from when Uber and Lyft overwhelmed the market. So, I’m watching that. I don’t think it’s going to happen yet. Well, I shouldn’t say Snowflake  (SNOW) – Get Report was big and then it missed. We have to be cognizant that people do run out of money, in the end, the supply doesn’t stop when they run out of money.”

Stimulus Package

Treasury Secretary Steven Mnuchin pitched the stimulus plan worth $600 per person to House Speaker Nancy Pelosi in a telephone call on Tuesday afternoon.

Cramer said that people need to be more plugged into public health. “We’ll supply money for you not to work, don’t feel like you have to work until the pandemic is beaten. Instead, it’s been a discreet hotch-potch. The fact is people need money right now. I think $600 per person is a very smart idea. It’s hard for the Democrats to say no to it.”

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