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Jim Cramer on ThredUp: “I Don’t Feel Comfortable Recommending This One”

ThredUp Inc. (NASDAQ:TDUP) is one of the stocks on Jim Cramer’s radar. Cramer noted that the company loses money and is not expected to be profitable for the next couple of years, as he remarked:

“Next up, also in late October, Jeff in California asked about ThredUp, which is an online consignment store and one of the world’s largest resale platforms for apparel, shoes, and accessories. This one came public during the pandemic year of bull market in early 2021, but its stock plunged 98% from its 2021 highs to its lows 13 months ago. Similar trajectory to the RealReal. Now, it seems these stocks are hot again, at least the ones that are left. ThredUp’s rallied over 300% in the past year.

Stock started running late last year just after the election, which makes me think people were betting on it as a tariff play. The tariffs make new stuff more expensive, which makes resale products more enticing. ThredUp’s certainly moving in the right direction. After a down year in 2024, revenue’s growing again, and they’re on track to put up 19% growth this year. Their EBITDA’s turned positive, too. That said, the company’s still overall losing money, and it’s not expected to become profitable till 2028. Given its $928 million market capitalization, I don’t feel comfortable recommending this one, as it’s never turned a profit since coming public.”

ThredUp Inc. (NASDAQ:TDUP) runs an online resale platform that allows consumers to buy and sell secondhand clothing, shoes, and accessories.

While we acknowledge the risk and potential of TDUP 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 TDUP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

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  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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