EquipmentShare.com Inc. (NASDAQ:EQPT) was among Jim Cramer’s stock calls on Mad Money, as he highlighted worthy space players and reviewed several of this year’s IPOs. Cramer highlighted what sets the company apart, as he stated:
As we witnessed the largest IPO in history today, I want to remind you that SpaceX is not the only newly public company we’re really dealing with here. There are nearly a dozen recent IPOs that I’ve recommended just this year alone, and tonight, I want to walk you through them, kind of do a little follow-up, see how they’re doing now. Back at the end of January, for instance, I highlighted EquipmentShare.com, which is an equipment rental company with its own sophisticated software platform.
What sets this company apart, though, is that they’ve come up with a capital-light business model. They buy new equipment, sell it to institutional investors, and then lease it back from those investors before renting it out to their own customers. Yeah, it’s the same way many retailers handle real estate. The stock had a nice start to it. I was cautiously optimistic when I recommended it. Well, turns out that was too bullish. EquipmentShare has now fallen from just under $30, where I covered it, to just under $20. Now, in fairness, I recommended this one right before the wind of the war, and I think that that really got it.
It caused a big spike in both oil and interest rates. Still, even with war, Cramer fave, United Rentals, still managed to rally 20% over that same period. It was a bad call by me. For what it’s worth, EquipmentShare reported a strong beat and raise quarter a month ago, where management talked about seeing an unprecedented level of demand. So I’m inclined to stick with it. This is the kind of stock that does indeed get cheaper as it goes lower, and it’s gone a lot lower. Then again, the lockup on insider selling expires on July 22nd, and that’s likely to give you another pullback.
Photo by jason briscoe on Unsplash
EquipmentShare.com Inc. (NASDAQ:EQPT) provides a digital platform for construction equipment rentals and sales, as well as industrial tools and site management services. The company offers machinery parts, maintenance, and safety products.
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