Jim Cramer on lululemon: “I Think it has Fallen Too Far”

lululemon athletica inc. (NASDAQ:LULU) is one of the stocks Jim Cramer shed light on. A caller who bought the stock at around $334 in early June asked if they should hold and recover losses or sell the position entirely. Cramer replied:

“Well, I think it has fallen too far. It’s down 50%. I think that Calvin McDonald is a person of great wisdom, and I do think that you can catch a bounce. I don’t want to say more than that because I think the prices are too expensive and it’s not differentiated enough, and I felt that way when my favorite Costco came in hard against Lulu.”

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lululemon athletica inc. (NASDAQ:LULU) designs and sells athletic apparel, footwear, and accessories for yoga, running, training, and related activities under the lululemon brand. When a caller inquired about the stock during the September 17 episode, Cramer responded:

“I tell you, I stopped liking them when I saw that they sued Costco for a really good product that Costco had. No, I’m not… Look, I think the American people want bargains. I would rather see you own Gap, which is going to be turning around this Athleta. That’s where I would go.”

While we acknowledge the risk and potential of LULU 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 LULU 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.