Cramer Says Sell Peloton “If You Haven’t Sold It” On Next Stock Uptrend


Business News

A monitor shows the signage of Peloton Interactive Inc. during the company’s initial public offering (IPO) across from the Nasdaq MarketSite in New York, the United States, on Thursday, September 26, 2019.

Michael Nagel | Bloomberg | Getty Images

CNBC’s Jim Cramer said Friday he believes Peloton shareholders should be on the lookout for an off-ramp after the sports equipment maker’s “disastrous” quarterly results a day before.

“Peloton has gone too far with this Precor acquisition and people are eager to go back to real gyms instead of buying equipment at home. Worst of all, management clearly has no clue about these issues and all sorts of things Lever speaks that you can pull to keep it. ” Things under control, “said the Mad Money presenter.

“But I don’t want control, I want growth. That’s something Peloton lacks now, so I’d be a seller on the next rebound if you haven’t already sold it,” he said.

Peloton shares plunged 35% on Friday, hitting a 52-week low as investors reacted to the company’s unexpectedly heavy first-quarter loss and slowing sales growth. Peloton, which released numbers after the market closed on Thursday, also lowered its outlook for the full year. On Friday, the company stopped hiring people in all departments, CNBC’s Lauren Thomas reported.

Peloton’s stock, which saw impressive gains at the start of the Covid pandemic, is down 63% year-to-date. As a disturbing sign, however, Cramer said, “I don’t see many institutions trying to catch demersal fish.”

Source Link

Leave a Reply