There's Nothing Stopping Former ‘Market Darlings' From Going Lower, Jim Cramer Warns

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“If you find yourself asking, how low can it go? The answer is almost always lower,” the “Mad Money” host said.

The company reached a new 52-week low of $6.18 earlier in the day, down from its 52-week high of $64.52 reached roughly a year earlier.missed Wall Street expectationsThe firm also reached a new 52-week low earlier in the day at $64.30, far below its 52-week high of $314.76 reached last August.

"These newer stocks, the ones that were coined in the last three, four, five years, they've been insanely expensive before the peak … maybe even before they came public, so as their business deteriorates, they can fall very, very far before they find any kind of support," Cramer said. He added that despite DocuSign's hard fall, he still doesn't think the stock is cheap enough to be a buy. As for Stitch Fix, the stock is untouchable until the company's core business stabilizes, he said.

"We don't care where these former market darlings have been. … We only care where they're going," he added.Disclaimer

 

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