Carvana has been on a hot streak. The stock is up about 7 percent this week, 70 percent in 2019 and 160 percent year-over-year.
Still, the online used-car platform is roughly $17 off of its all-time high in September after slipping with the rest of the market in the fourth quarter. Cramer said it was crushed without a specific reason.
The host acknowledged that he mistakenly recommended buying Carvana’s weakness in October—the stock eventually touched $28 prior to Christmas. Carvana has since recovered, without big news, much of those losses and caught a spark despite disappointing quarter results two weeks ago to close shy of $56 Thursday, he said.
“When Carvana was reporting great numbers in the fourth quarter and its stock was going down, it was a fabulous buying opportunity,” Cramer said. “Now, though, we keep getting what I’d consider to be bad news … [in a] scathing research report, a disappointing quarter, [but] the stock keeps going higher. At these levels, you know what I say [sell].
Get Cramer’s full insight here
The post We need better earnings before recommending this stock appeared first on USNewsRank.