Uber's lockup expiration could 'hobble the entire market' even more than Beyond Meat, Cramer warns
, which means that those shares will be authorized for trading on public markets. That's in addition to other initial public offerings in the queue.
"When you have billions of dollars of stock entering the market without a natural home, you better believe the averages will come under pressure," Cramer said. "These lockup expirations and IPOs [are] going to take their toll, unless a flood of new money comes into the stock market. I hope we can absorb them without too much pain, but hope is not part of the equation."expired on Tuesday, and the stock tumbled more than 22% during the session.
Beyond Meat would have seen an even larger fall had the company not reported a strong quarter the previous day, Cramer said. "The market's being flooded with new shares of Beyond Meat and the supply overwhelmed the demand," the "Mad Money" host said. "I think it could have further to fall because even here it seems overvalued to me."
Cramer said he's "concerned" because lockups will also expire for many other businesses that made their market debuts in the first half of 2019.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jim Cramer says performances of these luxury brand names show the 'consumer's in great shape'Cramer looks at some of the top names in the consumer discretionary sector, which includes a host of nonessential goods and services such as motor homes, cruises, snowmobiles and timeshares.
Read more »
Jim Cramer breaks down what's driving the stock market's rally toward all-time highs'Without strong demand, the averages never would have made it this far,' 'Mad Money' host Jim Cramer says.
Read more »
JEDI contract means a lot more for Microsoft than for Amazon, Jim Cramer says'The Pentagon's basically saying that Microsoft's cloud platform is just as good as Amazon's, or at least close enough for government work,' 'Mad Money' host Jim Cramer says.
Read more »
Jim Cramer: 5 reasons why cyclical stocks are showing resilience and may go higher'Normally these stocks get hammered in the wake of a shortfall, yet this quarter they're more likely to rally,' Jim Cramer says.
Read more »
Beyond Meat just fell more than 20% after lockup expiration — Jim Cramer and other experts weigh inThe shares tanked on Tuesday after the company warned of competitors entering the alternative meat space and a lockup period expired. The stock also failed to get a boost from a 250% increase in revenue and a turn to profitability.
Read more »
Shares of Shopify drop on surprise loss, but Cramer says you'll regret sellingShares of Canadian e-commerce company Shopify dropped after reporting a surprise loss on earnings.
Read more »