Whole Foods Market, Inc. (NASDAQ:WFM) has two strong pulls on the stock right now, with the buying side more exuberant currently, on account of the impressive earnings report from the retailer of the natural and organic foods. However, the longevity and sustainability of the demand pull is questionable. Fast Money traders on CNBC discussed the strategy and the caution with which the stock should be approached.
Guy Adami explained the short interest in Whole Foods Market, Inc. (NASDAQ:WFM), but at the same time he was hopeful for the stock price during the upcoming quarter.
“Shorts have been trying to lean in to this thing since it washed out in early May. It has been trying to break $35 literally for the last 5 or 6 months unsuccessfully […] I think that this quarter could squeeze the shorts. I think it gets to $45 at least,” said Adami.
On the other hand, Dan Nathan was appreciative of the efforts that Whole Foods Market, Inc. (NASDAQ:WFM) has been carrying out in connection with its online presence, although it is still not close to being the largest online retailer of the world, but the move has shown a positive sign in the company’s earnings report.
“Yeah, it has been good and we see it in New York actually. They trucks and vans all over the place, and similarly they have been remodeling some old stores and I think competition came in and it came in really hard. I am actually with Guy, the stock rallied 10% in this report, it is up $2.5 right now. I am not sure you chase it right here, but if you were to buy it at $42.5 and you use $40 as a hard stop, that is probably a very good way to chase it because at some point this thing will have to fill in that gap from early May,” said Nathan.
Whole Foods Market, Inc. (NASDAQ:WFM) is currently up nearly 10% for the day, and is trading at $43.82.
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