A dry IPO market may be exacerbated by the collapse of Silicon Valley Bank, and that signals two things that are "very positive for the stock market," CNBC's Jim Cramer said on Monday.
First, existing companies that are entrenched in their industries will no longer be challenged by nimble new players, Cramer said, as they run out of cash and cannot easily raise more money.
Second, because there is no new competition for existing companies, that also means there will be no new competition for their stocks, Cramer said.
"The incumbents are winning, and that means their earnings could be better than anyone thinks," Cramer said.
Take McDonald's, for example. The company's stock hit a new high on Monday, in part because of layoffs.
If you lay people off in pretty much any industry, and your sales are good, your company stock will go higher, Cramer said.
"McDonald's is the ultimate example of the incumbent winning," Cramer said.
The phenomenon is evident in a host of industries. Other established names that may see a benefit for their stocks include Amazon, Alphabet or Meta Platforms, according to Cramer.
"Bottom line? When there's no new competitors, no new stock and no new money, to the incumbent goes the spoils," Cramer said.
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