Stock Market Today With Jim Cramer: Rocket Was a Dumb Short

Jim Cramer discusses the latest stock market news including the drop in Zoom Video, the short-selling of Rocket Companies, and markets on Wednesday.
Author:
Publish date:

Stocks were mixed after Treasury yields spiked and the U.S. private sector added jobs in February at a weaker-than-expected pace.

TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about Zoom Video, the short-selling of Rocket Companies and markets on Wednesday.

Zoom Video: Buy Or Sell?

Shares of Zoom Video  (ZM) - Get Report dropped a day after ARK Invest's Cathie Wood bought more than 250,000 shares of the videoconferencing platform, valued at $95 million.

Cramer said Zoom was good, they gave investors a good path. "Zoom which is now down 220 points from its high, is a company investors don't think is worth $100 billion anymore. So, Zoom has been turned around because we are in an unforgiving market that just doesn't like certain stocks, but it may not last for too long."

Rocket Companies: Buy Or Sell?

Shares of Rocket Companies  (RKT) - Get Report dropped Wednesday after the mortgage lender found itself in the midst of a short squeeze potentially fueled by investors who are part of Reddit's subreddit WallStreetBets.

Cramer said he wondered why traders did not buy puts on Rocket stock instead of shorting it. "It was just a way to limit your risk. It was a dumb short because the company is doing well and reported its best dividend."

Markets on Wednesday

Cramer said investors are throwing away anything that had done well this time, last year and embracing a whole group of stocks that did terribly. "If you have a portfolio made up of growth stocks, you'll have everything going wrong. And everything going right, if you have a portfolio that is made up of industrials."

None of these are key holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.