Choosing the right stocks can help you grow your wealth, but holding onto the wrong ones can be a costly mistake. Some stocks don’t just underperform—they can drain your portfolio and erase your hard-earned gains faster than you realize.
The reality is, many investors overlook the warning signs, and by the time you hear about the risks, it’s often too late. Some of these problematic stocks might even be popular names, regularly making headlines for all the wrong reasons.
We’ve put together a list of stocks that we believe you should consider selling or avoiding right now. If any of these are in your portfolio, it might be time to rethink your position before they start dragging you down.
ZoomInfo Technologies (ZI)
ZoomInfo Technologies (NASDAQ: ZI) is another stock that has struggled in 2024, with shares down 42% year-to-date. Despite the company’s long-term potential, analysts are cautious about its near-term outlook. More than half of those covering the stock have rated it as a “hold,” reflecting concerns about continued revenue headwinds.
Mizuho Securities recently flagged issues around downsells and renewals that could keep weighing on the stock in the short term. While there’s hope for a rebound in the longer term, ZoomInfo’s current challenges make it a potential candidate for tax-loss selling. Investors may want to consider exiting the stock before further declines.
Rivian Automotive (RIVN)
Rivian Automotive (NASDAQ: RIVN) has been a high-profile player in the electric vehicle space, but it’s also been one of 2024’s biggest underperformers. With shares down significantly this year, Rivian could see additional selling pressure as investors look to lock in tax losses.
While Rivian’s future in the EV market remains promising, the company is still in the early stages of growth and faces significant competition. The stock’s performance this year makes it a candidate for trimming before the year ends, especially if you’ve held it through its rough 2024 run.
Etsy (NASDAQ: ETSY)
Etsy (NASDAQ: ETSY) has been struggling with slowing revenue growth, a trend that’s becoming more evident across the e-commerce sector. In its most recent earnings report, Etsy posted another quarter of declining year-over-year gross merchandise sales (GMS), down 2.1% YOY. While revenue managed a modest 3.0% YOY increase, this growth was driven primarily by higher fees and advertising, not from expanding its core business. Net income took a hit, dropping 14% YOY, underscoring the challenges Etsy faces as its pandemic-driven growth continues to fade.
Despite hopes for a rebound, Etsy’s stock has been in a downward spiral, falling 32% year-to-date and more than 80% from its peak. The reality is that Etsy’s growth story may be over, and the market seems to be reflecting that sentiment. With revenue growth now dependent on price hikes rather than increased sales volume, the long-term outlook appears bleak.
Given these factors, it may be time to reconsider holding onto Etsy. The stock’s current trajectory suggests that further declines could be on the horizon, especially if revenue begins to decline YOY, as we’ve already seen with GMS. Selling now could be a prudent move to avoid deeper losses as the company continues to navigate a challenging environment.
