May 7, 2025
Smart investors know that knowing when to sell is just as important as knowing what to buy.
While most financial media focuses on stocks to purchase, we look for companies facing serious problems that might make them worth selling. These aren’t just stocks that are temporarily underperforming – they’re businesses facing real challenges with their operations, finances, or that are simply overvalued.
We don’t make recommendations based on short-term price movements or news headlines. Each company on this list has been carefully analyzed using multiple factors that often predict significant price drops.
Good portfolio management means both buying and selling at the right time. Often, the best decision is to move your money away from troubled positions before problems show up in the stock price.
Current Sell Candidates:
Opendoor Technologies (OPEN)
Opendoor Technologies faces a serious combination of housing market problems that directly threaten its core business. The company’s shares dropped 25% in April as housing data showed a worsening environment for its home-buying operations, with mortgage applications down 6% year-over-year and pending home sales declining 2.8%. Record high housing costs – with the median U.S. monthly payment reaching an all-time high of $2,870 due to high prices and interest rates – have created an increasingly difficult market for Opendoor to profitably buy, renovate, and sell homes.
The basic problem for Opendoor is that its business model depends on both liquidity and predictability in housing markets – two factors that have significantly worsened. While the company showed some progress in Q4 with 25% year-over-year revenue growth and improving efficiency, these gains are likely to be overwhelmed by broader market forces. Recent Redfin data shows that while housing inventory is finally increasing (new listings up 6.1% and total homes for sale up 13.7%), this is happening alongside reduced buyer demand – a potentially dangerous combination for a company that profits from the spread between purchase and sale prices.
At $0.74 per share, down from a 52-week high of $3.09 and approaching its low of $0.72, Opendoor has seen its market value collapse to just $543 million despite generating billions in historical revenue. The stock’s thin 8.40% profit margin provides almost no protection against housing price declines, while high daily trading volume (42.7 million shares) indicates ongoing institutional selling. With consumer concerns about broader economic impacts from tariffs further reducing housing demand, Opendoor appears caught in a downward spiral where market conditions are worsening faster than its internal improvements can offset. For investors still holding positions, the combination of a fundamentally challenged business model and worsening housing market suggests immediate reconsideration.
Tilray Brands (TLRY)
Tilray Brands shows all the signs of a company running out of options as it faces deteriorating results across multiple business lines. The cannabis producer’s 26% April decline followed a disappointing fiscal third-quarter report showing a 1% year-over-year revenue drop to $186 million, alongside a swing from an $885,000 adjusted profit to a $2.9 million loss. Most concerning was management’s decision to cut full-year revenue guidance from $950 million-$1 billion down to $850-$900 million – a reduction that suggests the company’s challenges are getting worse rather than stabilizing.
With the stock now trading at just $0.46, down from already low levels and well into penny stock territory, Tilray has resorted to financial engineering to try to maintain its listing status. The company has proposed a reverse stock split at a ratio between 1-to-10 and 1-to-20, to be voted on at a special shareholder meeting on June 10. This extreme measure rarely fixes underlying business problems and often precedes further declines as it signals management’s lack of real solutions to fundamental challenges.
Tilray’s attempt to diversify through craft brewery acquisitions appears increasingly misguided as beer consumption hit a four-decade low in 2024 according to the Brewers Association. This strategy of expanding into a separate declining industry offers little hope of offsetting cannabis market weakness. With a market value now down to just $459 million despite billions in historical investments, and no catalyst on the horizon absent federal cannabis legalization (which isn’t imminent), Tilray presents a classic value trap. The stock’s ongoing volume decline (trading well below daily averages) suggests remaining institutional holders may be quietly exiting positions, potentially creating a narrowing window for retail investors to do the same before a potential final collapse.
FuboTV (FUBO)
FuboTV’s 17.75% single-day drop following its first-quarter earnings report reveals a growing threat to its business model. While revenue grew modestly by 3.5% to $416.3 million and losses narrowed to $0.02 per share (beating expectations), these surface improvements hide a much more concerning trend: rapidly declining subscriber numbers. North American paid subscribers fell from 1.676 million to 1.47 million in just one quarter, while international customers declined from 362,000 to 354,000. Most alarming is that these declines represent year-over-year drops of 2.7% and 11% respectively, indicating this isn’t just seasonal fluctuation but a structural decline in the company’s customer base.
Management’s forward guidance suggests this negative trend is accelerating rather than stabilizing. The company expects to end the current quarter with fewer than 1.3 million North American subscribers and no more than 335,000 international customers – projections that suggest double-digit revenue declines across both segments. This accelerating customer exodus signals a fundamental problem for streaming television services priced similarly to conventional cable, a challenge that appears to be industry-wide rather than specific to Fubo.
The pending merger with Disney’s Hulu, announced in January, is unlikely to solve these core challenges. Hulu’s own live TV streaming service has stagnated over the past year, suggesting the problem isn’t brand recognition but rather the fundamental value of cable-like streaming services in an era of proliferating stand-alone sports and entertainment options. Trading at $2.41, down from its 52-week high of $6.45 with extremely high volume (45.3 million shares vs. 19 million average), FUBO shows clear signs of institutional abandonment. With very thin 10.12% profit margins providing minimal protection against subscriber losses, no dividend support, and a business model increasingly at odds with consumer preferences, FuboTV represents a classic case where even significant declines may be just the beginning of further deterioration.
Bottom Line
This week’s featured companies share a common thread – they represent business models facing fundamental shifts in consumer behavior and market dynamics that appear increasingly insurmountable. FuboTV faces accelerating subscriber losses as consumers reject cable-like streaming services, Tilray’s cannabis ventures and brewery acquisitions are both struggling in declining markets, and Opendoor confronts a housing environment where its core profit model is increasingly untenable. In each case, management teams are running out of viable options, resorting to financial engineering or mergers that fail to address underlying structural challenges. For investors still holding these positions, the window for orderly exits may be narrowing as institutional selling accelerates.