Why Jim Cramer thinks owning Sweetgreen stock is ‘a recipe for portfolio destruction’

CNBC’s Jim Cramer on Tuesday warned investors not to invest in SweetgreenHaving said that the stock is unlikely to perform well in an inflationary environment.

“It’s a bear market, not a bull market. … In a bear market, you don’t stick your neck out to pick up the stocks you hate,” They said.

“Right now, Wall Street likes earnings, cash flow, dividends. Sweetgreen’s got none of that. You’re fighting [Federal Reserve] And tape if you try to fish this down, and it’s a recipe for portfolio destruction.mad Money” added the host.

Cramer didn’t mince words, stating that he believes the company’s stock is not investable. He reminded the audience that the company’s expensive salads are unlikely to sell in an inflationary environment.

He added that the prospect of a recession or a new Covid-19 variant also cautions him against the stock.

“SweetGreen is an unprofitable growth story. …. I told you to avoid this stock when it went public. I told you to avoid it again in December, when it was trading at $33. In the past. Nothing has happened in six months to change my mind,” Kramer said.

Shares of Sweetgreen fell 2.3% to $11.86 on Tuesday.

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