Not every stock can be a winner. Many companies find themselves unable to forge a path to profitability. Other companies see their stocks rise to such high valuations that they have nowhere else to go but down. Either way, some stocks reach a point where investors should sell…
Not selling at the right time could lead to untold sums in losses and deep regrets. Investors in Blue Apron (NYSE:APRN), Snowflake (NYSE:SNOW), and Tilray (NASDAQ:TLRY) who want to avoid such a fate should consider unloading their stock in these three companies while they still can.
1. Blue Apron
One company on the path to leaving investors famished is Blue Apron. The consumer discretionary stock received a bit of a reprieve during the COVID-19 pandemic as ordering food for delivery suddenly became more popular. This took Blue Apron from the $2 per share range in mid-March to an intraday high of $28.84 just days later.
Unfortunately, this had the effect of feeding a recovery narrative unlikely to last, and Blue Apron stock steadily fell back. Today it trades in the $7 per share range.
Blue Apron stock has the same problem it has had since its 2017 IPO — the lack of a competitive moat. With food and recipes widely available, companies both large and small can produce mail-order food kits. Investors knew this from the beginning and sold off the stock. The one-for-15 reverse split instituted in June 2019 has brought only temporary relief.
For one, with the notable exception of the most recent quarter, Blue Apron loses money. Guidance points to negative earnings returning in the third quarter, and analysts forecast massive losses for this year as well as 2021.
The company also lacks an obvious path to profitability. With losses continuing and the stock price again falling, feasting on Blue Apron stock is a likely path to starvation.
With its lead in the data cloud, investors looked forward to Snowflake’s IPO. Even Warren Buffett’s Berkshire Hathaway took a position.
However, since the IPO hype, the stock has traded in a range. Moreover, despite its potential, Snowflake appears positioned to…
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