CNBC's Jim Cramer warns investors to be careful about the market next week.
With multiple companies going public in the coming days, there could be new reasons for volatile trading.
"When we get a spate of IPOs, it's usually a bad sign for the rest of the market," the Mad Money host said Friday, "because money managers don't have all that new money, so they're coming." I have to sell stocks that are similar to these stocks to buy something. "
After an already packed year of IPOs in 2019, Wall Street brought more than 110 companies public in 2020, up 5% year over year, Cramer said.
"Given that September is a bad month for the market," he said, "I urge you to be prepared when these deals begin to flow."
Below is a summary of Cramer's reactions to the upcoming IPOs:
Snowflake: "This thing is getting too hot unless you can get a part of the actual deal, which would be fantastic," he said. "Otherwise it could be too expensive."
Unity software: "Not profitable yet."
JFrog: "This is one of the most lucrative corners of the cloud-based software space."
Sumo logic: "I'm not familiar with this one, but what's important here is that you now have four cloud deals coming next week and that is causing some portfolio managers to sell current cloud holdings (because) they have room for that have to make new ones. "
I'm fine: "With Teledoc's merger with Livongo, the digital health coach, Amwell could be the only publicly traded pure telemedicine game to hit the market. That means it's still far from profitable."
GoodRx: "At a time when people are very careful about their health and bank accounts, GoodRx seems like a winner. Again, it all depends on price – you don't want to buy anything that's too hot."
Palantir (direct listing): "Palantir is a fast growing company so it could work, although recent reports indicate that early interest was not as strong as the company or anyone else expected it to be."
Asana (direct listing): "Asana has had an excellent growth rate – 82% last fiscal year, few have – but it's also been a consistent money loser. I think it will be a good test case for market values."