More Squawk From Jim Cramer: Square (SQ) Stock Debuts, 'Dorsey Pulled It Off'

Square (SQ) stock made its market debut on the New York Stock Exchange this morning, and Jim Cramer thinks that Square and Match Group (MTCH) are both 'relative bargains.'
By Rachel Graf ,

NEW YORK (TheStreet) -- Square (SQ) - Get Report stock is soaring 50.89% to $13.58 in its market debut on the New York Stock Exchange this morning, after being priced at $9 per share on Wednesday evening. The stock's projected offering ranged between $11 and $13.

Square is a financial services, merchant services aggregator and mobile payment company based in San Francisco.

"What they did was give you a bargain to attract you," TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning. "Later on, they might release some stock as the lockup ends."

He thinks that Square and Match Group (MTCH), the dating sites owner which debuted on the Nasdaq today, are "relative bargains." Square was priced below competitors such as PayPal (PYPL), Cramer added.

However, all of the 120 unicorns, or private companies with valuations above $1 billion, except Airbnb are valued too high, sources have told Cramer. Square had been valued at nearly $3 billion. 

"This is 'game over' for the 120 unicorns," Cramer noted. "I think that [Salesforce.com CEO] Marc Benioff last night pronounced the death of the unicorns on Mad Money."

That being said, Square strived for profitability, and reported 49% sales growth so far this year, compared to last year, Cramer added.

"At least Dorsey is willing to bite the bullet," he said, noting that he loves Square at its current price. "Listen to me, private equity firms," Cramer added. "Dorsey pulled it off."

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

Loading ...