Is Roblox stock set to withstand the reopening? Or will there be some turbulence as people can start to return to normal?
"The IPOs and SPACs keep on coming, but there is one recent issue that caught Cramer's attention, online gaming platform Roblox, which came public via a direct listing, to much fanfare and excitement," wrote TheStreet's Scott Rutt in his Mad Money recap. "Cramer said Roblox is a turbocharged growth stock that surged during the pandemic. The company allows players, most of which are age 13 or younger, to create their own 3D worlds and share them with friends. The platform boasts 32 million daily active users which have provided Roblox with 82% revenue growth."
"As with any new issue, Cramer said a great story is only as great as its valuation. In the case of Roblox, shares currently trade at 17 times booking, which is expensive, but not out of line with other high-flying tech names. The Roblox story could get a little choppy depending on how soon, and how quickly, the economy reopens, but even so, he recommended starting a position. Cramer advised not paying more than 20 times bookings," Rutt continued.
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