Jim Cramer on e.l.f.: “I Think We Have to Wait Till it Comes Down”

e.l.f. Beauty, Inc. (NYSE:ELF) is one of the stocks Jim Cramer weighed in on. Noting its recent surge in value, a caller inquired about the stock but voiced concern about potential risks related to China and asked whether it is too late to buy in. In response, Cramer said:

“I would not worry about the China scare because it’s what I call baked into the stock. What I would worry about is the parabolic move we had today. I mean, ELF is up nine. I think we have to wait till it comes down. I’m thrilled you’re in the club, but I know if I were in the club right now and we owned ELF, I would say trim, don’t buy. That’s just a parabolic move, and that signals that it’s up too much.”

Why e.l.f. Beauty, Inc. (ELF) Surged On Thursday

e.l.f. Beauty, Inc. (NYSE:ELF) develops and markets cosmetics and skincare products under brands such as e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare.

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.