Jim Cramer Thinks This Stock, Which Has Lost Over 50% Value In One Year, Is 'Too Controversial, Too Crazy'

In a recent episode of “Mad Money,” host Jim Cramer has deemed the stock of Herbalife Nutrition Ltd HLF as excessively controversial and unpredictable, in light of a 50% plunge in its value over the past year.

What Happened: During the lightning round of his show on Friday, Cramer addressed a viewer’s inquiry about Herbalife. As per CNBC on Tuesday, Cramer’s candid evaluation was, “No growth. Don't want to touch it. Too controversial, too crazy. Let's move on.”

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This statement follows a substantial decrease in the value of Herbalife’s stock. The stock has shed over half its value in the past year, leading to heightened scrutiny and investor apprehension.

Why It Matters: The sharp decline in the value of Herbalife has not been without reason. The company’s most significant challenge was its multi-level marketer (MLM) business model, as per BofA Securities. In 2023, analyst Anna Lizzu initiated coverage of Herbalife Nutrition with an Underperform rating and a price target of $14, reflecting the skepticism surrounding the company’s business model.

Price Action: Herbalife closed 4.85% lower on Monday at 7.06, as per Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari