All over the map.
That's the only way to describe the swings and the twists and turns of this market after the cathartic crash and burn of the Nasdaq that has led to an acceptance and what seems to me to be a different breed of investor.
We had a long run of people, particularly young people buying what I call the Big Five, Snowflake (SNOW) , Unity Software (U) , DoorDash (DASH) , Airbnb (ABNB) , and C3.Ai (AI) , five companies that came public pretty much at the same time that all resonated with those who believed that stocks only went up.
And they did. For a time.
But then we had the great Tech Implosion, the one that cratered all of FAANG as well as Microsoft (MSFT) , Nvidia (NVDA) , AMD (AMD) , and Salesforce (CRM) , the most visible of those that collapsed.
Now the latter are mounting a comeback but it's all fits and starts.
The former? The Big Five? I think that they are struggling because no one is quite sure what they are worth and the big sell-off was about trying to figure out what growth is worth and is it worth any amount simply because the concept is solid.
The rebellion against concept investing I think is not done but it will be if we get twice the GDP growth than we have had. I think people will pay up far more for a Boeing (BA) or a Union Pacific (UNP) than they will a DoorDash or a Unity. Will they continue to pay up for Tesla (TSLA) which will then allow for many of the ev SPACs to re-ignite? I think yes if ARK (ARKK) keeps catching a bid and gets more inflows. Otherwise it could be trapped by its old high.
The one wild card: GameStop (GME) . If GameStop keeps going higher there is a likelihood that there can be others of a similar ilk if only because I do not believe GameStop is the only game in town. Think about it. If it is true that Ryan Cohen is "sui generis" then I am could be wrong. But why should he be the only anointed soul out there? Why can't the Reddit Wall Street Bets people run more than just this one now that they see their power?
If you get enough GameStops going than I think any valuation is possible for anything.
Right now the air is still coming out of the high price to sales stocks.
But I suspect the GameStop people are flexing muscles for the next stock and it is more likely than not going to be one of the Big Five.
One other wild card: Roblox (RBLX) . It has a feel of the Reddit Bets love affair with Palantir (PLTR) , stoked by ARKK.
Both Palantir and Roblox have many similar characteristics: loved by their users, mystique and a strong brand name.
Roblox, GameStop, Big Five, Palantir, all in play post the Nasdaq collapse, and far more "interesting" than FAANG and company to the young investors soon to be armed with $1400 from the federal government.
(MSFT, NVDA, AMD, CRM, BA, and UNP are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)
