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Stock Market Today With Jim Cramer: Don't Buy Zoom Stock

Jim Cramer discusses the latest stock market news including Uber, the market reaction to Zoom's earnings and the latest on the coronavirus aid package.

Stocks traded higher Tuesday as Wall Street came off its best monthly performance since April.

The Dow Jones Industrial Average rose 259 points, or 0.88%, to 29,897, the S&P 500 gained 1.35% and the Nasdaq was up 1.48%.

TheStreet's Katherine Ross discussed breaking news in the stock market. Cramer spoke about Uber, the market reaction to Zoom's earnings and the latest on the coronavirus aid package.

Uber: Buy Or Sell?

Uber  (UBER) - Get Uber Technologies, Inc. Report shares rose on Tuesday after the ride-hailing and food-delivery giant closed its acquisition of food-delivery service Postmates. The two companies have begun integrating their U.S. operations, Uber said.

Cramer said Uber is holding serious meetings to figure out what do restaurant owners want. "Doordash and Uber are anxious to keep businesses alive. So I'm looking at them. I need Facebook to get on board too. I've been pressuring the Treasury Secretary that he should do it. These restaurants are in many ways the lifeblood of cities and people have to recognize that without help and business interruptions they're sure as finished.

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Zoom: Buy Or Sell?

Shares of Zoom  (ZM) - Get Zoom Video Communications, Inc. Class A Report fell sharply Tuesday, as analysts expressed concern about valuation despite the video-conferencing company releasing a strong earnings report.

Cramer said Zoom, much like Facebook  (FB) - Get Meta Platforms Inc. Class A Report when it first started out, didn't get the marquee clients it needs to have. "Zoom needs to start winning over. Zoom has a lot of businesses, a lot of companies use it but it needs to make a compelling case [for itself]. The marketplace is saying no because it feels post the pandemic they will not have this kind of valuation. This is not a stock for when America opens again."

Stimulus Package

There are media reports that suggest that a bipartisan group of senators was ready to unveil a $900 billion coronavirus relief package.

Cramer said the stimulus package needed to happen. "Secretary Mnuchin wants to do something. The Cares Act was his. Anybody who is close to him knows that this is a man who is trying so hard to make it so that small business does well. People don't realize that's where his heart is. He is going to nail this right at the end."

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