CNBC’s Jim Cramer on Friday warned investors that stocks of some of the most successful new companies during the pandemic continued to decline, and this may be just the beginning. not.
“If your stock doesn’t have dividend support and you don’t have a reasonable valuation on your earnings, then assuming you even have earnings, there are no floors in this market. In most cases it will be low.”Flirt“The host said.
“Don’t confuse the bottom with the great decline. They are not synonymous,” he added.
Friday’s stock price May Consumer Price Index It showed a higher inflation rate than expected.
StitchFix shares, which boomed during a pandemic as consumers moved to online shopping, were 18% on Friday after the company announced a layoff on Thursday and predicted a decline in earnings in the fourth quarter. It has fallen.
The company fell from its 52-week high of $ 64.52 about a year ago to a new 52-week low of $ 6.18 earlier in the day.
Another pandemic winner, DocuSign, then plummeted 24%. Missed the expectations of Wall Street About earnings and earnings for the latest quarter.
The company also hit a new 52-week low earlier in the day at $ 64.30, well below the 52-week high of $ 314.76 last August.
“These new stocks, built in the last three, four, or five years, were insanely expensive before the peak … maybe even before they were released, they were very, very, as their business deteriorated. Before they find any help, they may fall far away. “
He added that despite the DocuSign plunge, he still doesn’t think the stock is cheap enough to buy. When it comes to stitchfixes, he said, inventory will be out of control until the company’s core business stabilizes.
“We don’t care where these former market darlings were … we only care where they go,” he added.
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