Cramer suggests that weight loss drugs could negatively impact the stock prices in the food and beverage industry.
- On Monday, CNBC's Jim Cramer advised investors to exercise caution when investing in snack food and beverage stocks, as weight loss drugs have recently gained traction on Wall Street.
- "Avoid investing in these food and beverage stocks as one of them will eventually confess to being harmed by GLP-1s, which will cause the entire group's stocks to plummet," he stated.
On Monday, CNBC's Jim Cramer advised investors to exercise caution when investing in certain food and beverage stocks, as there is a growing interest in companies that produce GLP-1s, weight loss, and diabetes drugs like Mounjaro and Zepbound.
"Avoid investing in these food and beverage stocks as one of them will eventually confess to being harmed by GLP-1s, which will cause the entire group's stocks to plummet," he stated.
Sales for food and beverage companies may be weaker due to various factors, including GLP-1s, according to industry experts. However, some in the industry argue that GLP-1s are not negatively impacting sales or consumer behavior.
Cramer stated that the snack business is struggling, but attributed the decline to a consumer with less disposable income. He also mentioned that liquor companies are experiencing declines, which could be due to high prices or consumers opting for cannabis products.
Cramer acknowledged that accurately forecasting the impact of these drugs on food markets is challenging, but he maintained that they will undoubtedly alter the market.
Although we cannot determine the full impact of GLP-1s compared to other factors, it is clear that these drugs had some effect.
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