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Stock Market Today With Jim Cramer: Buy Snowflake Stock

Jim Cramer discusses the latest stock market news including Snowflake and Splunk earnings and the latest stats from the jobs report released today.

Stocks rose Thursday as the number of Americans filing for first-time unemployment benefits pointed to a gradual recovery in the labor market and investors focused on movement on a potential stimulus bill that has been deadlocked in Congress for months.

TheStreet's Katherine Ross discussed breaking news in the stock market. Cramer spoke about Snowflake and Splunk earnings and the latest stats from the jobs report released today.

Snowflake: Buy Or Sell?

Shares of Snowflake  (SNOW) - Get Snowflake, Inc. Class A Report jumped on Thursday, rising to their highest level since the company began trading in September, a day after the cloud-data platform provider posted stronger-than-expected third-quarter sales that sparked analyst price-target upgrades.

Cramer said we were hoping Snowflake would goof under $200. "In retrospect, that was way too greedy. The lowest it went is $208. It's selling at 100 times sales which is very difficult to swallow. I don't know how you can not hire them [Snowflake]. You want to have the algorithms that they have. The only companies that seem to know more about their customers are Alphabet  (GOOGL) - Get Alphabet Inc. Class A Report and Facebook  (FB) - Get Meta Platforms Inc. Class A Report because they are really algorithmically built."

Splunk: Buy Or Sell?

Splunk  (SPLK) - Get Splunk Inc. Report shares dropped after the company reported third-quarter results that missed analyst estimates. The San Francisco data-analysis-software company reported a wider-than-expected third-quarter loss.

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TheStreet Recommends

Cramer said Splunk had trouble closing some deals. "I think they will close those deals. I don't think it will ever be viewed the same way which is a shame. They highlighted deals with Herbal Life and New Skin. They are some multi-level marketing companies and I tend not to like those. At the same time when their stock is down 25%, you have to ask yourself what happens if they close those seven deals. I'm not averse to buying the company but there are so many companies that are doing well. Why do I have to buy the one that's not doing well."

Jobs Report

Jobless claims were lower than expected last week as companies ramped up hiring ahead of the critical holiday shopping season even as Covid-19 cases and hospitalizations continued to surge. 

Cramer said we'll get the real number tomorrow with the non-farm payrolls. "What's going to happen now are evictions but you can't evict anyone right now. When we get to evictions a lot of people are just going to sell their apartments that are underneath the renters. You almost have to. The property is worth more than the people. Others will say if you don't pay rent we'll just get rid of you. It will be very ugly. There will be landlords who are stretched to limits with the banks."

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