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Stockchase Opinions

Jim Cramer - Mad MoneyJFrog Ltd.FROGBUYOct 06, 2021

He's surprised it's down 50% this year. It's a good company.
N/A

Stock price when the opinion was issued

$77.74

As of Jun 12, 2026. Market Open.

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SELL

Too expensive. Would sell at current valuation. 

BUY ON WEAKNESS
2020 IPOs cost too much, and now are worth buying that they are out of style and cheaper. IT debuted in September at $64, now at $52. The valuation is a lot more reasonable now. There's no rush to buy these software stocks. Buy this at $43 or 20x sales (not earnings).
DON'T BUY

They didn't blow away their numbers. You have to when expectations are so high (this is a speculative stock). Even Adobe blew away numbers last night, but sold off today.

PARTIAL BUY
They IPO'd in September. Their lock-up ends in March. A terrific company. Buy some now, then buy more in March's lock-up expiration.
COMMENT
Has suffered a recent downtown, and is caught in the current height of tech stock selling. Is a very good company.
COMMENT
What he calls one of 15 Red Hot stocks: unstoppable growth stocks with a sky-high valuation (30-100x sales, not earnings) Thank of them as a software developer software developer. Recently it went public. The stock has tripled YTD, because it's a textbook Covid play. The bar is set pretty high, priced at 44x next year's sales.
BUY ON WEAKNESS

IPO'd today. Likes it. It was priced at $44, opened at $71, pulled back to $51 and closed at $64.79. FROG is a cloud platform for development operations (dev ops) which means it allows engineers to collaborate between departments within a company. They bridge between the development and operation teams. FROG customers include Facebook, Spotify, Google, Netflix, Cisco, Oracle and Dell. It boasted 65% revenue growth in 2019 and 50% the first half of this year, based on recurring subscription revenue for its services. First half this year came within $500K to break even, so debt is lowering. He expects them to be profitable in 2021. Has a lot going for it, but its valuation is already at nosebleed levels. A great stock, but too high already.