For this week, I see these three stocks as vulnerable investments in the near term. Here’s why I think these are three stocks to avoid this week…
- Blink Charging tumbled 15% on the week. The operator of charging stations for electric vehicles had a huge rally last month along with other EV-related investments. Gravity kicked in this time for the volatile stock.
- Nikola took an even bigger hit than Blink Charging, with its weekly plunge of 32%. A big change in terms with its high-profile partner and its post-IPO lockup expiration rocked the shares.
- Jumia cratered 15% for the week. The African e-commerce specialist was another stock that had a strong November bleed into a wave of selling last week.
The three stocks averaged a nearly 21% decline for the week. They all suffered double-digit percentage losses, a sharp contrast to the S&P 500’s comparable gain of 1.7% for the week.
For this week, I see Blink Charging, Stitch Fix (NASDAQ:SFIX), and Booking Holdings (NASDAQ:BKNG) as vulnerable investments in the near term. Here’s why I think these are three stocks to avoid this week.
I’m back to the Blink Charging well this week. The stock may have tumbled nearly 15% on an otherwise buoyant trading week, but the stock remains one of the more irrationally overpriced investments out there.
Electric vehicles will continue to grow in popularity, but this doesn’t mean that Blink Charging will be a leader in pay-to-charge parking kiosks. Despite all of the speculative buzz this is still a company with just $4.5 million in trailing revenue, and no near-term shot at turning a profit. Blink Charging hasn’t earned the $773 million market cap it commands heading into the new trading week.
Blink Charging knows how to craft promising press releases detailing its plans to consolidate in big cities, but this market will ultimately be commoditized. No matter how big you think the market may be for premium charging in the future I can guarantee you’re either overplaying Blink Charging’s competitive strengths here or overestimating the number of car owners that will be paying a lot to charge an eco-friendly automobile.
The pandemic hasn’t been kind to Stitch Fix, and understandably so. With so many retailers going out of business no one wants to pay full price for clothing. With folks spending more time at home they don’t need as many stylist-coordinated outfits as they used to before.
The bullish argument for Stitch Fix is that it…
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