Sell These Five Stocks Before the End of the Year

Published on: 12/10/18 1:23 PM

Tags: Latest News, Market, Stocks, Trade

Snap, Inc.

If you hold Snap (NYSE:SNAP) you probably often question your decision to hold the stock. Despite the hopes of tech market experts, the data does not support holding Snap. One of the few positives is that losses have been less than expected.

Since their March 2017 IPO, share prices have plummeted, in large part because of competition from Facebook brands Instagram and WhatsApp. Instagram struck the first blow by mimicking many of Snapchats most popular features. Now, WhatsApp is threatening to inflict a potential death blow to Snap with possible implementation of photo messaging.

General Electric

The once mighty GE (NYSE: GE) has fallen on hard times made worse by their inability to benefit from the resurgence in manufacturing in the United States. Since the departure of legendary CEO, Jack Welch, GE has had a run of mediocre leaders who struggled to adapt the company to a changing landscape.

Decisions such as slashing their quarterly dividend to one cent per share have not helped either. The good news for GE is that their earnings estimates are promising. The bad news is that their performance over the past several quarters do not make them the same reliable earnings machine they once were.

Netflix, Inc.

Down over 40% since early summer, Netflix (NYSE:NFLX) has experienced rapid growth fueled by heavy investment in content. The spending spree embarked upon in hopes of staying one step ahead of their competition has left them with a long term debt load that has increased by nearly $3.5 billion in the past year.

Netflix’s spending on content continues to rise. Spending on original content and licensing in 2018 has approached $8 billion. Their next challenge will be how to respond to the loss of all Disney titles when Disney launches their streaming service in 2019.

Roku, Inc.

An early adopter of streaming technology, Roku (NASDAQ:ROKU) has seen its stock price nearly cut in half since October 1st. This fall primarily due to Roku not meeting estimates and their inconsistency in not turning an annual profit. Analysts have long hoped and expected Roku to be more consistently profitable based on the steady growth of their user base.

For Q3, 2018 active accounts grew by 43%. This positive was largely overlooked by analysts when advertising revenue was reported to be $3 million below estimates. Because of Roku’s volatile history, the stock was punished.

Amazon, Inc.

The period between Black Friday and Christmas is the busiest for Amazon (NASDAQ:AMZN) so you might be surprised to see them on any end-of-year recommended sell lists. For those who see a bear market approaching, Amazon has the potential to be adversely affected.

Amazon has a long run of year to year growth that may be difficult to replicate. The stock may have found its top value as analysts struggle to see how they can project long term growth at 43%. This concern extends beyond the sales and advertising platform to their largest profit center, their cloud computing platform.

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