Watch: Jim Cramer on AppLovin, KB Home, Market Rotations

Jim Cramer discusses market rotation, KB Homes (KBH) – Get the Knowledge Base Home Report, AppLovin (APP) – Get the Applovin Corp report. and markets.

Watch the full interview with Katherine Ross in the video below:

Let’s talk about rotation

“The rotations seem like a huge mystery when they happen. They seem so oblique, hidden, even inexplicable,” Cramer wrote in his Real money column. “And then you look back and you realize ‘what the hell was I doing always buying industrial stocks at the top’, or ‘why haven’t I come back to companies that are having great growth no matter what. is coming. “me!”

“Yes, they are so infuriating. They can really surprise you. For example, take a look at the charts for the past two months for Snowflake stocks (SNOW) or DocuSign (DOCU) or CrowdStrike (CRWD). Take a look at those in Square (SQ) , You’re here (TSLA) and PayPal (PYPL). Take a look at Zscaler (Z). Do you know what you are seeing? You will see a whole bunch of designs that look almost exactly the same. You will see stocks that had seen a terrible decline and that decline ended around May 12 of this year. Since then, these stocks have been on an almost uninterrupted rise. It was hot and, strangely, we are finally talking about it and we are noticing it right now, ”he continued. “What happened that day to make things so difficult?” Was it something related to the pandemic? Pre-opening, post-opening? A number of finicky gains? Presidential announcement? Covid variant? Nope.”

Turn our attention to AppLovin

“Investors looking for a fast-growing gaming stock should take a look at the recently public AppLovin (APP) – Get a report, Cramer told viewers. In fact, this might just be the best little stock you’ve never heard of, ”wrote The streets Scott Rutt in his Crazy money to summarize. AppLovin went public earlier this year with fanfare. The company started out as a provider of software development tools, but quickly evolved into in-house game development and now has a portfolio of over 200 titles, for most mobile games you can go green light on. “

Cramer said AppLovin’s game portfolio would be impressive on its own, but the company also has a wealth of valuable data that it compiles from all of its customers, which has helped it achieve a rate of 73% compound annual growth between 2018 and 2020. AppLovin predicts 80% growth in 2021, ”Rutt wrote.

“AppLovin’s shares are trading at nine times sales, which seems expensive until you compare it to competitors like Roblox (RBLX) – Get a report to 16 times sales and Unity Software (U) – Get a report at 24 times the sales with a lower growth rate, “he continued.” This is why Cramer said that AppLovin is a great company worth buying. “

Hear what Jim Cramer says only to members of his Action Alerts PLUS Investment Club in The daily recap for Thursday.

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