The stock market doesnt care about social justice: Jim Cramer says investors are backing potential winners from protests

CNBC

• Stocks shrugged off mass protests to close higher on Monday because investors expect some companies to benefit, Jim Cramer said on “Mad Money” on Monday.
• “The stock market doesn’t care about social justice,” Cramer said. “Investors are simply trying to make money, and that’s why they’re crowding into the stay-at-home economy stocks.”
• The demonstrations could spark a second wave of coronavirus cases, and businesses might close or delay recalling their workforces if local protests turn violent, Cramer continued.
• “From this stock market’s perspective, everything that happened this weekend means the stay-at-home economy will last longer than we thought,” he said. “Right or wrong, thoughtless or cerebral, it’s worth exploiting.”
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The US stock market brushed off nationwide protests to close higher on Monday because investors are betting some companies will benefit, “Mad Money” host Jim Cramer said during his Monday show.

“The stock market doesn’t care about social justice,” he said. “Investors are simply trying to make money, and that’s why they’re crowding into the stay-at-home economy stocks.”

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The mass demonstrations, sparked by George Floyd’s death in Minneapolis last month, threaten to fuel a “huge second wave of infections, far earlier than people thought,” Cramer warned. In places where protests turn violent, businesses might also shut down or keep their workers off site for longer, he added.

As a result, more people could be spending more time at home, boosting companies such as Amazon, Facebook, and Zoom Video Communications, Cramer argued.

“From this stock market’s perspective, everything that happened this weekend means the stay-at-home economy will last longer than we thought,” he said. “Right or wrong, thoughtless or cerebral, it’s worth exploiting.”

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However, Cramer cautioned that investing in stay-at-home winners isn’t guaranteed money. “Buyers are oblivious to the risk of purchasing stocks that have run and run and then run some more,” he said.

For example, Zoom stock has roughly tripled since the start of this year, driving up the video-conferencing group’s market capitalization to about $58 billion – more than 90 times its $622 million in revenue last financial year, and more than 2,600 times its $22 million in net income.