Investors can expect fast-growing technology stocks to be sold as the fund’s release money to participate in the wave of new IPOs, Jim Cramer of CNBC said on Wednesday. Among the companies to be listed this year are the Lyft and Uber, the Airbnb hospitality platforms, the Palantir Computer Intelligence company, and the WeWork workplace.
The Dow Jones Industrial Average lost more than 32 points during the session, the S & P 500 lost 0.46% and the NASDAQ, a technology giant, lost 0.63%.Behind the scenes, Mr. Cramer said Lyft management measures the importance of possible shareholders across the nation. As we approach the Lyft IPO on Friday, fund managers determine how much of their capital is allocated to them. The transportation platform should offer more than 30 million shares in a range of $70 to $72, an increase from $ 62 to $ 68, he said.
Most of the funds that receive the first loan with Lyft do not have much money in their hands, he said. To get more equity for Lyft, they are withdrawing money from other stocks they own, such as Facebook, Workday, or Alphabet, he added.
“As the Lyft deal will yield a lot more money for these financial managers, they are frantic to raise money and care less about how much they trade those stocks,” Cramer said. “So the sale will be blind and cruel, as was the case this morning, and the price becomes irrelevant if you try to raise money for a hot transaction.”
After the IPO, Cramer said the larger funds could decide to carry even more shares in the opening. During the IPO season, Cramer said he was short in the short term and wanted to raise funds for his charity, ActionAlertPlus.com.