Based on his list, Cramer said among the “red hots” trading more than 30 times sales estimates for next year include BigCommerce, Snowflake, Datadog and Shopify. He cited his inclination to own some of the stocks and overlook valuation worries due to their great sales growth.
Zoom could pull back sharply, Cramer warns
Cramer said Zoom shares, which have risen more than 700% this year, exemplifies the relationship between current price and potential.
“Sure, it trades at 52 times next year’s sales, but it’s also got a nearly 300% growth rate for 2020. How do you value a company that’s taking over the world?” Cramer said.
However, the Mad Money host reminded investors that Zoom could pull back sharply once a vaccine to prevent COVID-19 infection is already available.
News about vaccine availability would prompt governments to open economies and allow face-to-face activities. That means companies will likely require their employees to return to their offices and back on video conferencing activities.
