CNBC’s Jim Cramer was behind the Southeast Asian giant Grab on Monday, though he advised investors to wait for lower price levels as Wall Street’s appetite for SPAC transactions disappears.
Grab, an app that offers transportation, food delivery, hotel reservations and other services, is to merge with Altimeter Growth for $ 39.6 billion, in the world’s largest up-to-date verification offer.
“I don’t like the price now, but if you’re expecting a weakness and it probably will, you have my permission to buy something,” said the “Crazy Money” host.
Cramer said the stock will be more attractive below $ 11.50, about 20 percent lower.
“The thing about Grab … is a great company, but it’s also completely outdated with the Wall Street fashion show,” he added. “It’s a fast-growing digital game at a time when money managers want smoke stocks.”
Smokestack refers to companies in more cyclical market sectors such as energy and industry.
Grab will display on the Nasdaq with the GRAB marker when the transaction ends with Altimeter, a special purpose purchasing company. The stock, currently under the symbol of AGC, was last traded at $ 14.01 on Monday, 4.4% higher than on Friday.
Altimeter Growth is led by venture capitalist Brad Gerstner, who also got behind Snowflake and Roblox. Cramer pointed out that the company had agreed to a three-year lockout of its shares.
Grab reported adjusted net revenues of $ 1.6 billion in 2020, surpassing its pre-pandemic performance. The company projects an annualized growth of 42% by 2023, according to a file.
Grab 16th place on last year’s CNBC Disruptor 50 list in 2020.