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Morning Bell With Jim Cramer: How to Trade Uber Stock

Jim Cramer shares stock-market news including how to trade Uber and Rocket Cos. after earnings and SEC chief Gary Gensler's testimony.

Stocks are mixed as the U.S. economy added fewer than expected new jobs last month, the Labor Department said Friday, underscoring the uneven nature of the economic recovery despite trillions in spending and record-low interest rates.

TheStreet's Katherine Ross and Cramer are talking about how to trade Uber and Rocket Cos. after earnings and expectations from SEC chief Gary Gensler's testimony.

Uber: Buy Or Sell?

Uber  (UBER) - Get Uber Technologies Inc. Report reported a decline in revenue for the first quarter and missed analysts' expectations. Earnings topped estimates. Uber indicated it would pay drivers more to get cars back in service as the economy rebounds.

Cramer said the secret to Uber is autonomous driving because drivers would eventually cost too much. "What I didn't realize is it would cost too much now, which then makes Uber not cheap. A lot of us took it for granted that Uber wouldn't be expensive, it is. Uber can't make it up with delivery because the desire to go out is insane," he said.

Rocket Companies.: Buy Or Sell?

Some analysts cut their price targets on Rocket Companies  (RKT) - Get Rocket Companies Inc. Class A Report after the mortgage-loan operator missed Wall Street's earnings expectations.

Cramer said he thinks Rocket stock is overdone. "Rocket said some things that you never want to hear like margin compression and have lower gross margins in order to wipe out others," said Cramer.

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But Cramer added this is a market opportunity and he likes the stock right here right now.

SEC Chief Gensler's Testimony

In a hearing focused on the frenzied trading of GameStop  (GME) - Get GameStop Corporation Report stock, the new U.S. Securities and Exchange Commission chairman Gary Gensler suggested more disclosure is needed.

Gensler also said new rules may be needed for brokerage apps that turn stock trading into a game or contest, a method called gamification.

Cramer said Gensler wanted everyone to know what's going on. "They may not block payment for order flow but people need to understand that they may not get the best price for it. They might regulate how short selling goes," Cramer added.

None of the stocks mentioned in this article are key holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer adds or removes stocks from his portfolio? Learn more now.