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CNBC’s Jim Cramer on Tuesday warned traders to not spend money on Sweetgreen, saying the inventory is unlikely to carry out effectively in an inflationary surroundings.
“It is a bear market, not a bull market. … In a bear market, you don’t stick your neck out to choose at hated shares,” he stated.
“Proper now, Wall Road loves earnings, money move, dividends. Sweetgreen’s received none of this stuff. You are combating the [Federal Reserve] and the tape when you attempt to backside fish on this one, and that is a recipe for portfolio destruction,” the “Mad Cash” host added.
Cramer did not mince phrases when laying out why he believes the corporate’s inventory is uninvestable. He reminded viewers the corporate’s dear salads are unlikely to promote in an inflationary surroundings.
The potential for a recession or a brand new Covid-19 variant additionally makes him cautious of the inventory, he added.
“Sweetgreen’s an unprofitable progress story. …. I advised you to keep away from this inventory when it got here public. Advised you once more to keep away from it in December, when it was buying and selling at $33. Nothing that is occurred within the final six months has made me change my thoughts,” Cramer stated.
Shares of Sweetgreen fell 2.3% to $11.86 on Tuesday.
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