On CNBC’s “Mad Money,” Jim Cramer said some of the fast-growing cloud stocks seemed “ready to roar.”
Analyzing charts based on technical analysis by Tim Collins, Cramer said ServiceNow Inc (NYSE: NOW) and Snowflake Inc (NYSE: SNOW) seemed to be “primed for a breakout,”
He added that this makes sense because these companies were labor-saving and could continue to work even if other technology companies start feeling the pressure due to accelerating inflation. America’s annual inflation rate edged up to a 13-year high of 5.4% in September, from 5.3% in the previous month, higher than market expectations of 5.3%.
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Cramer said Collins believes Snowflake could rally to as much as $360 by Thanksgiving and breach $400 by yearend, provided the Nasdaq Composite does not “totally fall apart.”
Cramer said Collins is more bullish on ServiceNow than Snowflake. He expects the stock to reach $750, while mentioning it has a resistance level around $680, which is close to its record closing of $681.10 on September 3. The “Mad Money” host added that it could take Snowflake a few tries before it breaches that level.
However, Cramer said if the stock breaks down below $610, Collins would “back away until it sinks to the mid $500s.”
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