e.l.f. Beauty, Inc. (ELF): “Right Now, They Don’t Like It,” Says Jim Cramer

We recently published 9 Stocks Jim Cramer Discussed As He Mentioned Trump & Intel’s CEO. e.l.f. Beauty, Inc. (NYSE:ELF) is one of the stocks Jim Cramer recently discussed.

e.l.f. Beauty, Inc. (NYSE:ELF) is a budget cosmetics firm whose shares have lost 5% year-to-date. It is part of the struggling cosmetics sector, which has suffered amidst high inflation. However, e.l.f. Beauty, Inc. (NYSE:ELF)’s shares would be lower had it not been for a 16.8% jump in August. The shares rose after the firm’s second-quarter earnings beat analyst estimates and added to the gains after a Morgan Stanley upgrade. Cramer discussed short seller sentiment surrounding e.l.f. Beauty, Inc. (NYSE:ELF):

“In retail we call it football, that means the price can be fungible, we don’t know what it’s going to actually be. Right now people are saying Elf Beauty may have to do some discount. I’ve got Tarang Amin on, he’s been a remarkable performer. Long term, short term it has not, been down 21. I want to hear what he to say. They are doing a big launch for Sephora, for one of their divisions. But right now, they don’t like it. And it could change because the shorts do panic if there’s a good story. But right now they don’t like it.”

e.l.f. Beauty, Inc. (ELF): "Right Now, They Don't Like It," Says Jim Cramer

Photo by Charisse Kenion on Unsplash

Previously, Cramer discussed e.l.f. Beauty, Inc. (NYSE:ELF) before its earnings:

“After we close, we get two more companies that I like very much, and I bet they’ll give us good numbers. That’s Dutch Bros and e.l.f. Beauty. These two renegades, young companies that have disrupted the coffee and cosmetic business, wow, they got a lot of room to grow and take share, and that’s exactly what they’re going to do. Again, good stocks.”

While we acknowledge the risk and potential of ELF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ELF and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.