'If the combination's over 40, you've got a good one. If it's under 40, you've got a riskier one,' the 'Mad Money' host said.
CNBC's Jim Cramer recommended more than a dozen cloud stocks that investors can play in a recessionary environment.on Friday revealed a basket of cloud stocks that he recommends investors can play in this uncertain market environment." host insisted that investors expose their portfolios to software-as-a-service plays that can work in recessionary times using a "quick and dirty" trick called the Rule of 40.
"You add the company's revenue growth rate to its earnings before interest, taxes, depreciation and amortization margin," he said. "If the combination's over 40, you've got a good one. If it's under 40, you've got a riskier one."
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