CNBC’s Jim Cramer on Tuesday warned investors against investing in Sweetgreensays stocks are unlikely to perform well in an inflationary environment.
“This is a bear market, not a bull market. … In a bear market, you don’t stick your neck out to pick hateful stocks,” he say.
“Wall Street loves earnings, cash flow, dividends right now. Sweetgreen doesn’t have these. You’re fighting with [Federal Reserve] and the tape if you try to bottom fish in this and that’s the recipe for portfolio destruction,”Crazy money” added the presenter.
Cramer did not decline when he gave reasons why he believes the company’s stock is not investable. He reminds viewers that the company’s expensive salads are unlikely to sell in an inflationary environment.
The possibility of a recession or a new Covid-19 variant, he added, also makes him wary of stocks.
“Sweetgreen is an unprofitable growth story.… I told you to avoid this stock when it goes public. Told you to avoid it in December, when it was trading. at $33. Nothing has happened in the last six months that has changed me,” Cramer said.
Shares of Sweetgreen fell 2.3% to $11.86 on Tuesday.
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