December 10, 2025
When it comes to investing, knowing when to sell is just as important as knowing what to buy. While most financial coverage focuses on buying opportunities, our research team has identified several companies facing significant challenges that investors should consider selling.
These stocks aren’t simply underperforming the market temporarily – they’re facing fundamental business problems, weakening financials, or carrying valuations that don’t match their current reality.
Our analysis isn’t based on short-term price movements or headline reactions. Each company has been thoroughly evaluated using multiple indicators that historically precede major stock declines.
Here are three stocks showing critical warning signs that demand your immediate attention:
Symbotic (SYM)
Symbotic shows how even companies with actual revenue and genuine technology can destroy shareholder value through poorly timed capital raises following massive stock price appreciation, with shares collapsing 25% for the week after disclosing plans to sell 6.5 million Class A shares alongside an additional 3.5 million shares offered by Softbank-controlled entities.
The robotics warehouse automation company reported mixed fourth-quarter results:
- Revenue of $618 million, up from $565 million in prior-year period
- Posted $19 million net loss
- Guided for first-quarter fiscal 2026 revenue between $610 million and $630 million
- Demonstrates actual operational traction yet insufficient profitability
The timing of the capital raise appears designed to capitalize on the stock’s approximately 160% year-to-date gain even after the recent plunge, with management recognizing that current valuations may represent a temporary window to extract cash from optimistic investors.
The company ended the fourth quarter with $1.24 billion in cash and cash equivalents, raising questions about why additional capital is necessary:
- Beyond opportunistic exploitation of elevated stock prices
- Or funding requirements related to CFO acknowledging expected “realignment of deployment” during fiscal 2026
- As Symbotic rolls out next-generation storage structure
This deployment disruption threatens near-term revenue generation precisely when the company most needs to demonstrate its ability to scale profitably. The near-doubling of deferred revenue that produced considerable free cash flow during fiscal 2025 appears largely attributable to the Walmart deal signed earlier this year, concentrating significant revenue risk with a single customer.
Trading at around $60 per share with a market cap approaching $7 billion despite an 18.07% gross margin and persistent losses, Symbotic carries a valuation that assumes its robotic warehouse technology will achieve dominant market position.
The stock’s 52-week range of $16.32 to $87.88 demonstrates the extreme volatility characterizing a company still proving its business model.
Oklo (OKLO)
Oklo shows how pre-revenue companies with stratospheric valuations resort to massive dilution to fund operations, with shares plummeting over 6% following disclosure of a $1.5 billion at-the-market equity offering that allows the nuclear energy company to sell shares at its discretion over time.
The offering triggered immediate concerns about substantial dilution:
- SEC filings caution investors they “may experience immediate and substantial dilution in the net tangible book value”
- Small modular reactor developer carries market cap of approximately $16 billion
- Despite generating zero revenue and posting 0.00% gross margin
- Reflects pure speculation play on nuclear technology that may never achieve commercial viability
The stock’s 400% surge over the past year created the valuation that now enables this capital raise, yet the offering’s magnitude relative to current market cap signals management’s recognition that far more capital will be required before the company approaches commercialization.
The at-the-market offering structure allows Oklo to continuously sell shares into rallies over extended periods:
- Rather than conducting single dilutive event
- Creates persistent overhang as investors recognize each uptick may trigger additional share sales
- Prevents sustained appreciation while methodically transferring wealth from existing shareholders
The company’s 52-week range of $17.14 to $193.84 reveals the speculative mania that temporarily drove valuations to levels completely disconnected from operational reality, with recent decline to around $105 per share representing only partial correction.
Major obstacles confronting Oklo extend well beyond technology perfection and regulatory approval:
- Company will require additional capital raises “well into the future” to fund reactor construction
- Creates scenario where early investors face continuous dilution
- Company repeatedly returns to capital markets throughout multi-year commercialization journey
- May ultimately fail despite consuming billions in investor capital
CoreWeave (CRWV)
CoreWeave shows the dangerous illusion of growth-at-any-cost business models, with the cloud computing provider burning through approximately $2 billion quarterly on data center capital expenditures while generating just $1.4 billion in third-quarter revenue, creating an unsustainable dynamic where the company spends far more building capacity than it earns from operations.
The AI-focused infrastructure provider has taken investors on a brutal roller coaster:
- Since late March IPO, spiked to nearly 360% gains by June
- Collapsed roughly 60% from those highs
- Those who bought at peak nursing devastating losses
- Even IPO participants up around 80% face growing questions about profitability
The company’s free cash flow of negative $8 billion over trailing twelve months against just $4.3 billion in revenue reveals a fundamentally broken economic equation where CoreWeave destroys cash at nearly twice the rate it generates sales.
The core problem extends beyond typical scaling inefficiencies:
- Graphics processing units for AI training have relatively short lifespans (one to five years)
- Forces continuous replacement cycles
- Prevents company from ever amortizing massive capital investments over meaningful timeframes
Management’s argument that building capacity now will eventually allow CoreWeave to “flip the profitability switch” ignores fundamental differences:
- Hyperscalers like Google Cloud or Azure own integrated software ecosystems
- CoreWeave operates as pure infrastructure play competing primarily on price
- Clients like Meta rent capacity specifically because it costs less than building own infrastructure
- CoreWeave must maintain pricing below customers’ internal cost structures
- Permanently caps margins below levels necessary for profitability
Trading at around $86 per share with a market cap of approximately $43 billion despite posting a 49.23% gross margin that still produces massive operating losses, CoreWeave carries a valuation demanding faith that the company can somehow escape the fundamental economics plaguing its business model.
The dilemma admits no easy solutions: raising prices risks losing customers, while slowing capacity expansion would miss the current AI demand window, yet continuing guarantees continued cash destruction.
The stock’s 52-week range of $33.52 to $187.00 illustrates the extreme volatility inherent in this speculative infrastructure play.