2 Hot Stocks to Avoid at All Costs
Investing seems easy when almost everything is going up. It's been hard to lose money in the stock market over the past year as stocks rebounded from the pandemic crash last March. Growth stocks have done particularly well, as investors have been willing to pay ever-increasing prices for growth in a world of ultra-low interest rates and pandemic uncertainty.
Nothing lasts forever in the market, and this won't either. Not every fast-growing company is truly worth dozens of times annual sales, especially if there are no profits to speak of. All it takes to derail a growth stock is a crack in the story.
Shares of ridesharing leader Uber (NYSE: UBER) and social media company Snap (NYSE: SNAP) are trading near their all-time highs after rallying over the past year. Neither company is even close to turning a profit, and any shift in market sentiment could send both stocks tumbling.
Source Fool.com
