Jim Cramer's Lightning Round: Virgin Galactic and Sprint

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Jim Cramer did a lightning round Friday over on TheStreet Live With Jim Cramer and Katherine Ross.

He took a look at the stocks of Sprint  (S) - Get SENTINELONE, INC. Report and Virgin Galactic  (SPCE) - Get Virgin Galactic Report.

Why Sprint?

Sprint and T-Mobile have amended terms of their merger.

Under the new deal, T-Mobile’s  (TMUS) - Get T-Mobile US, Inc. Report parent company, Deutsche Telekom would hold 43% of the new company, with Softbank--which is the controlling holder of Sprint--holding 24%.

However, the exchange ratio for common shareholders will remain the same -- 9.75 shares of Sprint for a single T-Mobile share.

Softbank’s exchange ratio will be 11 Sprint shares for each T-Mobile share.

The changes are due to Softbank giving Deutsche Telekom a slightly higher ownership stake due to Sprint’s financials declining in the two years since the merger was announced.

The companies plan to close the merger by April 1.

Why Virgin Galactic?

Virgin Galactic has had quite the run-up in the past few days. 

It's up nearly 20% in the past 50 days. 

And in the past three months, it's up a whopping 350%. 

However, analysts are watching the stock with caution.

In fact, Analysts at Morgan Stanley pumped the brakes in a note Thursday.

The firm has an overweight rating on the stock, with a $22 price target that represents a potential 41% downside from the stock’s closing price Wednesday of $37.35. Virgin Galactic shares were rising 9.5% to $40.80 in trading.

Morgan Stanley believes that now would be a good time for the space tourism company to raise capital after the shares have soared over the past 12 weeks

So, what does Cramer think about these two stocks? Watch the video above to find out. 

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