Stock Market Today With Jim Cramer: Buy Canopy Growth

Stocks traded mixed Wednesday on confidence that lawmakers in Washington were closer to reaching a stimulus agreement.

Wall Street also awaited the latest policy decision from the Federal Reserve.

TheStreet’s Katherine Ross discussed breaking news in the stock market. Cramer spoke about the merger of cannabis giants Aphria and Tilray, Wish’s stock market debut and why a stimulus deal means more cash in the stock market.

Canopy Growth: Buy Or Sell?

Cannabis giants Aphria  (APHA) – Get Report and Tilray  (TLRY) – Get Report on Wednesday revealed plans to join forces in an all-stock deal that will create the world’s biggest marijuana production and distribution company. The merger will create a new powerhouse in the pot industry, with an equity value of about C$4.8 billion ($3.8 billion).

Cramer said Aphria’s Irwin Simon is a good operator. “Canopy  (CGC) – Get Report is the one with the big money and the great management. And Canopy is down today. Let’s buy the company that has the liquid, that has the candy, the company [Canopy] has the best balance sheet.”

Wish IPO

Wish parent ContextLogic priced its IPO at $24 a share late Tuesday, according to published reports. The mobile online shopping company is the latest to join in a series of hot IPOs to come to market this month.

Cramer said some of these IPOs are just absurd. “Snowflake  (SNOW) – Get Report is one of the greatest companies in the world and Frank Slootman maybe one of the best CEOs on earth. But that’s not what cost them 100 points [drop]. It lost 100 points from where it was on an $11 million share lockup expiration. That’s because the stock was up so much from the ridiculous way that it became public, you knew that people are going to lose money on it. I’d buy some Snowflake now which is currently at $92 billion [in market cap]. But I don’t like situations where you’re down a 100 bucks.”

Markets On Wednesday

The Dow fell 55 points, or 0.18%, to 30,143, the S&P 500 gained 0.12% and the Nasdaq was up 0.37%.

Cramer said people need to understand that the market has been up in part because we did expect a stimulus bill. “There is a wall of cash that will be coming into the stock market because if everybody gets $600, not everybody needs the $600 and so they’re going to buy stocks. I think this money is going to Robinhood.”

None of these are a key holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.