XPEV - Dream Crushers: 3 Sorry Stocks to Sell Before Your Wallet Goes Empty
2024-05-27 14:33:39 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market is a rollercoaster of highs and lows, where fortunes are made and lost in the blink of an eye. This makes the case for the top sorry stocks to sell before your wallet goes empty in 2024.
While the allure of quick gains can be enticing, it’s important to remember that investments may not pan out. Some are destined for greatness, while others are ticking time bombs waiting to explore and leave your portfolios destitute. Dwindling revenues, escalating debts, declining profits, or questionable long-term growth prospects burden these struggling companies. It’s crucial to promptly identify and divest from these vulnerable investments to prevent significant financial loss.
Now, let’s unpack the top three sorry stocks to sell before they crush your profit dreams in 2024 and beyond!
Stocks to Sell: Peloton Interactive (PTON)
Peloton Interactive (NASDAQ: PTON ) is undoubtedly one of the top sorry stocks to sell. Once hailed as a pandemic darling, the company’s disappointing financial results and questionable long-term growth prospects make it a strong sell in 2024.
Peloton Interactive has seen its fortunes take a nosedive as the global economy has returned to normalcy since the pandemic. Their stock plummeted from its all-time highs in early 2021, driven by slowing sales growth, mounting losses, and a tarnished brand image. The company’s high-priced exercise equipment and subscription services have lost their appeal as gyms reopen and people can venture outdoors. Recent woes include a massive recall of 2 million Peloton bikes in the United States for faulty seats .
Additionally, investors are also concerned about its failed attempt to sell itself. Their high debt levels and cash burn rate create further concerns about its long-term viability. It’s time to hop off the Peloton bandwagon before it crashes and burns in 2024.
Lucid Group (LCID)
Lucid Group (NASDAQ: LCID ), an electric vehicle (EV) manufacturer in the United States, had once been touted as a potential “Tesla Killer.” However, that couldn’t be further from the truth as the company battles many challenges in 2024.
The company once touted to be a Tesla competitor saw its promise during more favorable economic conditions. However, higher interest rates, inflation, and softening EV demand have curtailed these plans.
Moreover, recent struggles include missed production targets, ongoing operating losses, and a dwindling cash reserve. It will be increasingly hard to overcome these challenges, especially as EV leaders like Tesla cut prices and ramp up production. Their financial outlook is uncertain, with analysts predicting continued losses and a long road to profitability. If you’re holding Lucid stock, it’s time to pull the plug and cut your losses ASAP.
Xpeng (XPEV)
Xpeng (NYSE: XPEV ), a Chinese electric vehicle (EV) manufacturer, has seen its stock price plummet amid an EV slowdown in China. While sales are growing, competition is increasing, and investors are more focused on profitability for EV manufacturers.
First and foremost, the broader electric vehicle (EV) market is extremely saturated, and very few have succeeded. In this current economic environment, revenue and delivery growth are simply not enough. Wall Street has become more focused on vehicle gross margins and profitability, which few EV manufacturers have achieved.
Additionally, Xpeng’s operating losses have increased every year since its IPO during the pandemic. Their loss from operations hit -$1.53 billion in the 2023 fiscal year . The company is also up against geopolitical risks and economic uncertainties in China. Xpeng’s recent rosy Q2 delivery forecasts are insufficient, making it one of the top stocks to sell before the next leg lower in 2024.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.
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