As Jim Cramer headed to San Francisco's Dreamforce conference this week, he kept hearing about these fantastic "billion-dollar unicorn" companies that are disrupting technology industry and waiting in the initial public offering wings. And while they may have sexy products and sky-high valuations, these unicorns scare the heck out of him.
"I am more afraid of being hit by a speeding fastball of money being tossed at a start-up than I am of anything the Giants can throw at the mound," the "Mad Money" host said.
Cramer sees the same investors over and over again screaming hot, hot, hot over these prospective public companies. But he wondered, hot to whom?
So while Cramer may not be a technology expert to determine the winners or losers at Dreamforce, he does know one thing that many do not know at the conference.
"I know the stock market, and I can tell you that this stock market is uniquely inhospitable to pretty much every single unicorn out there with only a couple of exceptions," Cramer said. (Tweet This)
Venture capitalists can talk their face off about addressable markets and destruction of competition, but Cramer questioned if they know anything about the stock market or the kind of shareholder demand that ultimately controls the profits that these companies make. There just isn't enough money coming in from the sidelines for the unicorns to be able to buy these deals.