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The auto industry is witnessing a shift in consumer shopping, with more and more people opting for buying used cars rather than paying for new cars. Cramer naturally wanted to guide investors in the right direction.
"If you want to see the big winner here, look no further than Carvana, the second-hand car dealer online," said the animator of "Mad Money." "This stock has dropped significantly from its recent highs, but understand it well: it has risen more than 500% from its lows a few days after it went public about 18 months ago, and it gave you a great gain of 185% 2018. "
The postulate of Carvana is simple. Rather than asking customers to physically visit car dealerships and spend their time looking for salespeople and filling in paperwork, the company publishes all relevant information on its website, allowing people to do research, to obtain financing or to buy a car online. Once they've bought their vehicle, they can pick up their car in a Carvana "vending machine", an automated garage that simplifies the caring process.
The title, however, has worked a great deal, and even if it's not yet expensive, investors should not spend their hard-earned money to invest in the stock if they have not made it. 39, money to lose, said Cramer.
"I would only buy Carvana for speculative purposes because the title is a real wild trader," he said. "You have to be ready to build your position gradually downhill if it continues to fall."
"Even after its proximity[ly] Down 25% from recent highs, the stock remains hot, hot, hot. So, yes, you have the blessing to buy it here, but do not be too aggressive and do not buy everything at the same level, "he added.
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