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.
FuboTV (NYSE: FUBO) Mounting Challenges Undermine Growth Potential
FuboTV, a sports-focused streaming platform, continues to face significant challenges that make it a stock to avoid. While the company has managed to narrow its losses, reporting a Q3 net loss of $0.17 per share compared to $0.29 a year ago, its overall fundamentals remain weak.
Revenue growth is slowing, increasing just 20.3% year-over-year in Q3—a sharp drop from its growth rate in 2023. Subscriber growth has also faltered, reflecting an inability to maintain momentum. Meanwhile, FuboTV remains unprofitable and heavily reliant on maintaining its niche position in a highly competitive streaming market.
The company faces increasing pressure from both new and established competitors. Netflix’s entry into sports streaming with live events like boxing and plans for pro football games could pose a significant threat if expanded. Additionally, FuboTV is embroiled in a legal battle to block the launch of Venu, a potential competitor backed by Disney, Fox, and Warner Bros Discovery.
Even if FuboTV wins the legal fight, the fact that its profitability depends on staving off competitors highlights the fragility of its business model. For investors, this is a clear signal to stay away. With slowing growth, rising competition, and uncertain profitability, FuboTV is too risky to hold in your portfolio right now.
Chegg (NYSE: CHGG) Struggling to Stay Relevant in the AI Era
Chegg, once a go-to online learning platform for students, is facing severe headwinds as generative AI technologies like ChatGPT reshape the educational landscape. With tools that can solve problems, write essays, and even pass professional exams, AI has made Chegg’s subscription model increasingly obsolete.
The company’s financial performance reflects this disruption. In Q3 2024, revenue declined 13% year-over-year to $136.6 million, and subscribers dropped 13% to 3.8 million. Chegg also reported a net loss of $2.05 per share, a dramatic decline from the $0.16 loss a year ago.
While Chegg has introduced AI-supported services in an attempt to stay relevant, these initiatives have yet to demonstrate meaningful traction. Competing directly with free or low-cost AI tools is a monumental challenge, and the company’s dwindling subscriber base underscores its struggle to adapt.
With revenue and subscriber losses piling up, and no clear path to recovery, Chegg is a risky bet. Until the company proves its AI-driven strategy can deliver results, investors would be wise to steer clear. For now, Chegg belongs on your sell or avoid list.
QuantumScape (NYSE: QS) Pre-Revenue Challenges and Mounting Risks Make This a Stock to Avoid
QuantumScape, a developer of solid-state lithium-metal batteries, has struggled to deliver on its early promise. Despite its innovative technology, the company remains pre-revenue and faces significant hurdles in commercializing its products. After soaring to a high of $131.67 shortly after its SPAC debut in 2020, the stock now trades at around $5—a staggering 96% decline.
While QuantumScape’s QSE-5 batteries boast impressive energy density and rapid charging capabilities, mass production is still years away. The company expects to begin commercialization in 2026, and analysts forecast continued losses totaling nearly $1.5 billion through 2026, with minimal revenue of just $7 million by the end of that period.
Compounding these issues, QuantumScape faces stiff competition from better-capitalized automakers like Toyota and emerging start-ups such as Blue Solutions. The company’s reliance on secondary offerings to fund operations has already led to significant shareholder dilution, with outstanding shares rising nearly 50% since its IPO.
Despite backing from Volkswagen, which has co-developed its technology for over a decade, QuantumScape insiders have been net sellers of the stock over the past year. This insider activity, combined with mounting delays and rising costs, casts doubt on the company’s ability to deliver sustainable growth.
While its solid-state battery technology is promising, QuantumScape remains a high-risk bet with little near-term upside. For now, this stock is best avoided until it demonstrates clear progress toward commercialization and profitability.