Jim Cramer speaks about market rotation, KB Homes (KBH) – Get the report, AppLovin (APP) – Get the report and the markets.
Watch the full interview with Katherine Ross in the video below:
Let’s talk about rotation
“Rotations seem like huge mysteries when they occur. They seem so weird, hidden, even inexplicable,” wrote Cramer in his column on real money. “And then you look back and realize,” what the hell did I do when I was still buying industrial stocks at the top “or” why didn’t I switch back to companies that are definitely having super growth. ” How did this rotation fool me? ”
“Yeah, they’re so crazy. They really can sneak up on you. For example, look at the last two months’ worth of charts for Snowflake (SNOW) or DocuSign (DOCU) or CrowdStrike (CRWD). Look at Square’s (SQ), Tesla (TSLA), and PayPal (PYPL). Take a close look at Zscaler (Z). Do you know what you’re seeing? You’ll see a whole bunch of patterns that look almost exactly the same. See stocks that went on a horrific decline and that decline ended around May 12 of this year. Since then, these stocks have seen an almost uninterrupted run-up. It has been hot and, oddly enough, it is finally being talked about and being noticed now, “he continued. “What happened that day to make things so difficult? Was it something to do with the pandemic? Pre-opening, post-opening? An idiosyncratic winning number? Proclamation of the President? Covid variant? No.”
We turn our attention to AppLovin
“Investors looking for a fast-growing gaming stock should take a look at the recently released AppLovin (APP) – Get the report, Cramer told the audience. In fact, this is possibly the biggest little stock you’ve never heard of, “TheStreet’s Scott Rutt wrote in his round-up for Mad Money.” AppLovin debuted with little fanfare earlier this year. The company started out as a software development tool provider but soon evolved into in-house game development and now has a portfolio of over 200 titles, most of which are mobile games that you can play on the go. “
“Cramer said that AppLovin’s game portfolio would be impressive on its own, but the company also has a wealth of valuable data compiled from all of its customers who helped it achieve an average annual growth rate of 73% between 2018 and 2020. to reach. AppLovin predicts 80% growth in 2021, “Rutt wrote.
“AppLovin stocks trade for nine times sales, which seems expensive until you compare it to competitors like Roblox (RBLX) – Get a 16x Revenue Report and Unity Software (U) – Get the report on 24x sales with a slower growth rate, “he continued.” That’s why Cramer said AppLovin is a great company worth buying. “
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