Cramer Says These Cloud Stocks Are Ready To Rally

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 NOW and Snowflake Inc 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%.

See Also: 4 Top Cloud Stock Picks For The Second Half Of 2021

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.”