CNBC’s Jim Cramer warned investors against investing in Sweetgreen on Tuesday, saying the stock is 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 hated stocks,” he said.
“Right now, Wall Street likes profits, cash flow, dividends. Sweetgreen has none of these things. You fight the [Federal Reserve] and the tape if you try to fish in this one, and that’s a recipe for destruction of your portfolio,” added the “Mad Money” host.
Cramer didn’t mince words when he explained why he believes the company’s stock is not investable. He reminded 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 also makes him wary of the stock, he added.
“Sweetgreen is an unprofitable growth story. … I told you to avoid this stock when it went public. I told you again to avoid it in December, when it traded at $33. Mind you,” Cramer said.
Shares of Sweetgreen fell 2.3% to $11.86 on Tuesday.
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