Did you miss "Mad Money" on CNBC? If so, here are some of Jim Cramer's top takeaways.
Shares of Roku (ROKU) - Get Roku, Inc. Class A Report have been on fire since their IPO earlier this week, rising 68% on Thursday and another 13% today. Is the company still a buy now that the much-anticipated unicorn has been released?
Not so fast, Cramer cautioned viewers. There's a lot to like at Roku, including strong sales, expanding gross margins and, after this week, a strong balance sheet. But there are also reasons for concern.
While none of Roku's competitors are focused solely on TV streaming like Roku is, the company does still have a growing number of sizable foes, including Apple (AAPL) - Get Apple Inc. (AAPL) Report , Alphabet (GOOGL) - Get Alphabet Inc. Class A Report and Amazon, along with a host of smaller streaming services.
But most concerning for Cramer was Roku's lack of a path to profits. The company isn't losing a ton of money, he said, but they also haven't made much progress since 2015. With the insider-selling lock-up release looming in just a few months, Cramer said he'd take a pass on Roku for the time being.
Cramer and the AAP team think it's a good idea to lock in some gains ahead of Pepsico's earnings next week. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
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At the time of publication, Cramer's Action Alerts PLUS had a position in PEP, AAPL.