Cramer gives 'two cheers' to Zoom and Beyond Meat

Jim Cramer, of CNBC, applauded Friday for the quarterly results of Beyond Meat and Zoom Video, two titles on which he was skeptical, released Thursday as "beauty things".

Newly listed companies saw their shares rise to double-digit numbers after exceeding Wall Street expectations in their first earnings reports since their recent IPO. Zoom surged more than 18% and Beyond Meat catapulted nearly 40% during Friday's session.

"I want to congratulate Zoom and Beyond Meat," said the host of "Mad Money." "They may be too rich now, but they have enriched you if you stayed with them."

Since entering the Nasdaq in early May, Beyond Meat shares are now worth less than $ 139, nearly six times its original price. False meat, which produces plant-based hamburgers, posted sales of $ 40.2 million for the quarter, Wall Street expects less than $ 39 million, and increased gross profit margin. more than 1,000 basis points compared to the previous year.

Beyond meat has vegan burger competition in private companies Impossible and Nestle, but Beyond has potential deals in fast food chains, Cramer said. According to Beyond Meat's management, competitors in the vegan hamburger industry made mistakes and gave the company a head start, Cramer said.

"They are convinced that they are making a better hamburger and they believe that there is still plenty of room to grow because the meatless meat category still accounts for only 2% of household penetration," she said. he declared. "No wonder the stock has exploded higher."

Zoom's share price went from its IPO on April 36 to $ 94.05 at Friday's close. The videoconferencing company recorded a significant turnover in its first public report. The company has announced about 7,700 new customers and four contracts that will bring in more than $ 1 million a year, Cramer said.

Zoom faces competition from Cisco, but Cramer pointed out that he had received a positive rating from JP Morgan, saying the quarterly results "demonstrate our confidence in Zoom as our preferred stock, even with the valuation level. current."

With Zoom's share price surging by more than 161% and Beyond Meat's share by nearly 455% as its announcement is now public, the presenter said "these stocks are trading at high levels. absolute stratospheric … both could be easily endangered. "

In the case of these two IPOs, however, Wall Street has understood and everyone wins, he said.

"I warn you for months that the recent flood of IPOs is creating a scarcity of resources, especially after the agreement with Uber," Cramer said. "But some of these deals have really been fantastic for investors, and I would have liked to be more optimistic."

Disclosure: Cramer Charitable Trust owns shares of Cisco.