If you are an investor with an urge to make yourself look like a fool in trading after hours, then Jim Cramer says to look no further than what just happened with Chipotle.
Chipotle's stock had been under pressure after weaker than expected guidance last quarter. However, the stock ran up approximately 10 percent going into Tuesday's earnings, mainly because of rumors that the worst might finally be over.
But one minute after it reported on Tuesday, the quarter was immediately labeled a miss. As a result, the stock that closed at $674 on Tuesday plunged more than 50 points. The longs got rid of the stock, and the short sellers placed their bets against the once red-hot sock.
The stock then rode a roller coaster up and down as the company conference call ensued. Chipotle CEO Steve Ells kicked off the call by discussing the need to remove GMOs from all food and anything unnatural from tortillas. He also mentioned how the company is frantically trying to source pork from better treated hogs, and introduced its new online game called "Friend or Faux" where customers can earn free food in an online quiz.
The stock stayed low the whole time.