CNBC’s Jim Cramer got the Southeast Asian giant Grab behind Monday, though he advised investors to expect lower price levels as Wall Street’s appetite for SPAC bids dwindles.
Grab, an app that offers transportation, food delivery, hotel reservations and other services, will merge with Altimeter Growth for $ 39.6 billion in the world’s largest blank check offering to date.
“I don’t love the price right now, but if you expect a little weakness and there probably will be, you have my permission to buy,” the Mad Money host said.
Cramer said the shares would be more attractive below $ 11.50, about 20 percent less.
“What happens with Grab … is a great company, but it’s also totally out of fashion with the Wall Street fashion show,” he added. “It’s a fast-growing digital game at a time when money managers want stocks of smokers.”
Smokestack refers to companies in more cyclical sectors of the market such as energy and industrial.
Grab will be shown on the Nasdaq with the GRAB ticker when the bid closes with Altimeter, a special purpose acquisition company. The shares, currently under the symbol AGC, were last traded at $ 14.01 on Monday, up 4.4% from Friday.
Altimeter Growth is run by venture capitalist Brad Gerstner, who also got behind Snowflake and Roblox. Cramer stressed that the company agreed to a three-year closure of its shares.
Grab reported $ 1.6 billion in adjusted net income in 2020, surpassing its pre-pandemic performance. According to a dossier, the company projects an annualized growth of 42% until 2023.
Take number 16 on last year’s CNBC Disruptor 50 list in 2020.