- CNBC's Jim Cramer issued advice to Peloton shareholders on Friday after the company's "disastrous" first-quarter results.
- "I'd be a seller on the next bounce if you haven't sold it already," the "Mad Money" host said.
"Peloton stretched itself too far with this Precor acquisition and people are eager to go back to actual gyms rather than buying equipment at home. Worst of all, management seems uniquely clueless about these problems, talking about all sorts of levers they can pull to keep things under control," the "Mad Money" host said.
"But I don't want control, I want growth. That is now something that Peloton lacks, which is why I'd be a seller on the next bounce if you haven't sold it already," he said.
Peloton shares plunged 35% Friday and hit a 52-week low, as investors reacted the company's wider-than-expected loss in its fiscal first quarter and weakening sales growth. Peloton, which reported numbers after Thursday's market close, also cut its full-year outlook. On Friday, the company paused hiring across all departments, CNBC's Lauren Thomas reported.
Peloton's stock, which saw impressive gains early in the Covid pandemic, is now down 63% year to date. However, in a worrying sign, Cramer said, "I don't see many institutions trying to bottom fish."
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