I tested three stocks to avoid last week, and I foresaw it Flashing charge (NASDAQ: BLNK), DoorDash (NYSE: DASH), And GameStop (NYSE: GME) Going to be a challenging week. It went horribly wrong for me this time.
- Flashing charge dropped last week by 6%. The electric vehicle charging expert continues to be one of the biggest earners in the market since the beginning of last year, but a step back is working for my weekly column. What could go wrong with the other two re-elections?
- DoorDash climbed 3% during the week. The leading freight delivery app has reached a higher level, but in the week when the S&P 500 The index rose by 2% I am still ahead with the combined return of the first two elections. There’s no way I missed this week. right?
- GameStop jumped 83% – yes, 83% – during the short trading week. There was no substantial news about the stock, but given its huge short-term interest in the video game retailer, it is fair to say that another brief click has occurred.
The three stocks posted an average increase of 26.7%. Naturally e S&P 500The increase of 1.9% is not compatible with this type of running. I was wrong. This week, I understand American Airlines Group (NASDAQ: AAL), Tesla Motors (NASDAQ: TSLA), And GameStop as vulnerable investments in the near term. This is why I think these are three stocks to avoid this week.
American Airlines Group
We are at the heart of the profit season, and there are hundreds of companies reporting quarterly results. American Airlines is checking in on Thursday, and if you see the “Seat Belt” light on, it’s just because things are going to get bumpy as the stock continues on its downward trajectory. We know airlines are doing a normal period in the new normal state, and American Airlines in particular has been a mess.
Revenue is expected to fall 66% in the quarter ended last month. Analysts see a huge loss of $ 4.11 per share, but don’t be surprised if it gets worse. The red ink here was more than expected on Wall Street in the last two quarters. He burns about $ 30 million a day in his current state.
The market sees Americans returning to profitability by 2023, but what to get excited about now. Consumer travel will continue to deteriorate to the point of an epidemic that will crush the world. Business travel will take even longer than that – if it ever comes back.
Unlike the other two names on this list it is easy to see Tesla Motors winning the market this year. Her business is booming. It is difficult to find a more ambitious brand in the field of electric vehicles. However, when Tesla shares are so strong ahead of this week’s earnings report, it’s easier to see the stock breathing even if it leads to another strong report.
We already know how Tesla’s production and dedication went in the quarter. The stock has more than doubled since the third quarter results were announced three months ago. Much of the report’s success is already in stock. Tesla reports on Wednesday. It’s going to be a wild week.
With the type of run that GameStop did last year and so far in 2021 it is almost hard to forget that this is a company in a state of irreversible decline. Gamers have gone digital, and outside of the one-time browsers when a new console is released, GameStop stores will continue to suffer.
The holiday sales were a bit positive for the video game retailer in small boxes, but this was the handiwork of the big card and unfortunately for the PS5 sales at the low margin of GameStop. These gamers will not return. They know they can download games, and even disc-based purchases usually have a better price online. Sales have plummeted for three consecutive years, and there is no reason to expect the trend to reverse any time soon.
Why is the GameStop stock at an all-time high with its sales at a 12-year low? The answer is short – as in short. There are fewer GameStop shares sold less than there are outstanding shares. It does not take much to make shorts run to the hills, and closing these positions provokes a wave of buying. It’s dangerous to shorten GameStop here, but even more dangerous to hold the stock after huge profits it did not earn.
If you’re looking for safe stocks, you probably won’t find them on American Airlines, DoorDash or GameStop this week.