Not all stocks are created equal. Some make you money. Others slowly drain your portfolio until you’re left wondering what went wrong.
The worst part? These so-called “market darlings” are often hyped up by the media, making it easy to miss the red flags until it’s too late. That’s where we come in.
We’re calling out three stocks investors should think twice about holding right now.
Moderna (MRNA) – A Biotech Bet That’s Lost Its Edge
Moderna’s COVID-fueled glory days are long gone, but you wouldn’t know it from the way some investors are still holding onto hope. The company’s revenue has collapsed, and it’s now running at a massive loss. In Q4 2024, Moderna posted a brutal $1.1 billion net loss, compared to a $217 million profit a year earlier. Revenue plunged 66% year-over-year, and with COVID vaccine sales drying up, the company is scrambling for a new growth story.
The problem? It doesn’t have one—at least not yet. Moderna is pouring money into its mRNA pipeline, but none of its other programs have proven to be commercially viable. Adding to the uncertainty, a $590 million bird flu vaccine contract awarded by the Biden administration is now under federal review, throwing yet another wrench into its outlook.
With the stock already down 25% in 2025 and 68% over the past year, you’d think there would be value here. But until Moderna can prove it can generate meaningful revenue outside of COVID, there’s no compelling reason to stick around.
General Motors (GM) – Sliding Into Trouble
GM’s stock has been taking hits for months, and the worst may still be ahead. Shares are down 22% since November, and the technical signals are ugly—its 150-day moving average is rolling over, which typically means the stock is about to lose even more ground.
The biggest problem? The auto market isn’t what it used to be. Higher interest rates have slowed car sales, and now GM is facing a fresh round of uncertainty thanks to President Trump’s new 25% tariff on auto imports from Canada and Mexico. GM has major manufacturing operations in both countries, so these tariffs could squeeze margins and disrupt production at a time when the company can’t afford setbacks.
To make matters worse, insiders have been selling shares, which is never a good look when a stock is already struggling. If GM can’t hold key support levels, a drop to $42 looks likely. That’s a risk not worth taking.
Tesla (TSLA) – A Valuation That Makes No Sense
Tesla fanboys won’t want to hear it, but the stock is in trouble. It’s already down 30% this year and 42% from its all-time high, and the fundamentals aren’t improving. EV demand is cooling off, especially in China, where Tesla is locked in a brutal price war with domestic competitors. The company has slashed prices multiple times to stay competitive, and while that may boost sales in the short term, it’s killing margins.
Then there’s the valuation problem. Tesla trades at over 105 times earnings, which is absurd for a company facing slowing growth, intensifying competition, and declining profitability. Some investors are betting that Musk’s close ties to President Trump will help Tesla’s prospects, but there’s no actual evidence that it will move the needle in any meaningful way.
Tesla has already erased its election-related rally, and with the auto industry looking weaker overall, it’s hard to justify holding the stock at these levels. There are better places to put your money.
The Bottom Line
The market is ruthless, and stocks that once seemed unstoppable can turn into portfolio killers fast. Moderna, GM, and Tesla all have serious problems that aren’t going away anytime soon. If you’re still holding them, now might be the time to rethink your position before the next leg down.