Updated: Jan 30
These 4 Stocks Are Crashing: Here's What To Buy Instead
As 2023 begins, a “new year, new me” energy surrounds us all, you might be thinking about your goals for the next 12 months but it might also be a good idea to think beyond that and future proof your plans. Starting with your portfolio, future proofing can prevent being stuck in a situation where the company or the coin you’re investing in goes belly up and you’re stuck with nothing. While we can’t exactly predict the future, we still can make an educated guess about how our investments are going. Here are the 4 stocks that are probably not going to last into the future and 4 replacements for it:
This for That: Meta for Blink
Meta embraces «work from anywhere» ahead of return to office. (2018). https://www.hcamag.com/us/specialization/benefits/meta-embraces-work-from-anywhere-ahead-of-return-to-office/400130
While the world was expecting stocks for Meta to fly through the roof once they launched their Metaverse, it seems to have done the complete opposite. When the second quarter reports for Meta came out in October, revenue fell by 4%, causing stocks to decline 49% in earnings per share. While this project produced a whopping $1.4 billion in revenue, it pales in comparison to the $9.4 billion spent on it, dissappointing investors with its lackluster results. Experts are advising to keep it for long term investments, but it’s better to have a safety net in case Meta disastrously crumbles.
If you or someone you know owns an electric car, you’re probably familiar with Blink Charging. Blink has a strong market position with a growing network of EV charging locations. The board of directors is on a mission to help Blink with growth, including Mike Battaglia, the former Senior Vice President of Sales and Business stepping up to the role of CFO of the company. The company also became a marketer and distributor for the Zooter, a flywheel-based power boosting cost effective technology to enable fast electric charging anywhere.
This for That: Redfin for Zscaler
Redfin redefines real estate with Atlassian cloud. (2018). https://www.atlassian.com/customers/redfin
It’s no secret the housing market is pretty rough currently. Redfin’s gross margin hit 9.67%, a notable fall from the 19.4% ping from last quarter; the house and apartment finding app is a sure seller, as it seems as more of a trap value rather than a sensible investment. With Redfin firing 13% of its workforce, it could be an early warning sign that real estate app is walking a thin line. The subtle cracks in the towering skyscraper of Redfin may be a warning to sell all stocks related to real estate due to inflation, or there may be stark consequences.
Zscaler is a cloud based cyber security company that protects the users data. It, as well as Wolfspeed and Cloudflare, has been deemed by The Motley Fool as one of the tech stocks to buy. Although the stock is rather pricey, it is a worthwhile buy as its growth is showing no sign of stopping. While Zscaler failed to impress bulls, it seems the $122 price tag may be a deterrent for beginners. With Zscaler’s surprising growth in the current quarter, it may be worth the investment.
This for That: Fubo TV for Ginkgo Bioworks Holdings
FuboTV. (2021). https://www.fastly.com/es/customers/fubotv/
In the cut throat world of streaming services, it’s nearly impossible to stand out, and that was Fubo TV’s problem. $410 million in net losses is a stark comparison to the $271 million in net losses reported last year, making it tough to profit off of it as an asset. Fubo TV generated 200 million in revenue in quarter 2, which sounds impressive until you hear the company spent 219 million on sports content for the service. If they changed their business structure and adds in features like sports betting, it could be possible for the app to pull a 180 and become profitable again.
Ginkgo Bioworks is a stock that cost only $1.68, but even a price that low can back a mighty punch. The cell programming company has received a stamp of approval from ARK Invest CEO, Cathie Wood, and are currently teaming up with healthcare titan Bayer and cannabis producer Cronos Group. In the first 6 months of 2022 its revenue of $313 million was nearly triple the revenue of its last year period of $87.7 million. This year, it’s expected the company will bring in $425 million and $440 million in revenue, a 38% increase from the 313.8 million. While it is a little risky, it has potential to explode on Wall Street.
This for That: Carnival Cruises for Lovesac. Co
Carnival. (2022). https://www.carnivalcorp.com/media-center/media-library/logos/
In the aftermath of COVID, the travel industry took a hard plummet, now with the pandemic being in our past, some companies are struggling to keep their heads above water. Carnival Cruises third quarter revenue came in at $4.3 billion, meaning it’s a huge improvement from the $546 million earned in the prior year period. However, the humongous number of revenue made in Q3 pales in comparison to the $6.53 billion the company made in Q3 of 2019.
After selling about 20% of its fleet, the company hiked up costs and made the price more unappealing. The company reported an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $303 million that, when you take depreciation into consideratio, it raises to a spine chilling $581 million. Now the company is scrambling to find replacement ships while trying to pay off the mounting debt of $28.5 million.
The modern age couch, Lovesac Co is a dark horse in the investing world, with The Motley Fool claiming it to be one of the stocks that may double in 2023. The company reported a 45% year-over-year sales increase for the second quarter. The company's underdog story comes at a time when the home goods market is at a double digit decline. The company has a large enough supply to keep up with demand, as products are designed to last a long time.The company has also teamed up with Disney and Xbox to create awareness for the companies StealthTech audio, a revolutionary experience for gaming and watching movies. With Lovesac working with such large names in the business world and its dark horse rise to power, it makes sense this stock may be a worthy trade.