As we officially enter the final week of the year, and head into 2021, these three stocks seem pretty vulnerable right now…
I took a look at three stocks to avoid last week, predicting that Airbnb (NASDAQ:ABNB), Moderna (NASDAQ:MRNA), and Cintas (NASDAQ:CTAS) as vulnerable investments were going to have a challenging week. I fell short of the mark.
- Airbnb slipped 2% for the week. After back-to-back week of market-thumping gains the next-gen hospitality player proved mortal.
- Shares of Moderna plunged 12% during the holiday-shortened trading week. Moderna’s vaccine was finally approved, giving investors that “sell on the news” moment. It probably didn’t help that some of the COVID-19 vaccine recipients for both approved solutions have come down with allergic reactions.
- Cintas investors experienced a nearly 5% dip. The workforce identity specialist failed to impress the market despite posting better-than-expected quarterly results.
The three stocks averaged a 6% decline, with all three entires losing to the market. The S&P 500 surrendered just 0.2% of its value in that time. For this week, I see Nikola (NASDAQ:NKLA), Airbnb, Lemonade (NYSE:LMND), and Chuy’s (NASDAQ:CHUY) as vulnerable investments in the near term. Here’s why I think these are three stocks to avoid this week.
It’s been four weeks since Nikola last graced this list of stocks to avoid, and it continues to plummet. Nearly everything that can go wrong for Nikola this year has gone south for the aspiring maker of big-ticket electric vehicles.
Its founder-CEO stepped down under a cloud of fraud allegations. Deals that helped propel the shares higher this summer have come undone. The stock that traded as high as $93.99 six months ago has been whittled down to $13.75. I normally don’t like to pick on a stock after it’s been hammered this far down, but we’re also heading into the final trading week of 2020. A lot of folks still…
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