2 Overhyped Stocks to Sell Right Now
Movie theater operator AMC Entertainment (NYSE: AMC) and cryptocurrency exchange Coinbase (NASDAQ: COIN) are super popular right now, ranking among the top-100 widely held stocks on the Robinhood trading platform. But do these overhyped companies deserve their lofty valuations?
The short answer is no. Let's dig deeper into why both stocks could burn holes in your portfolio over the long run.
While the U.S. COVID-19 vaccine rollout will encourage more Americans to return to theatres, AMC shareholders are still in big trouble. The company's massive debt load will pressure its bottom line, as potential future cash flow may go to creditors and interest expenses. To make matters worse, AMC is at the losing end of the film industry's transition to streaming.
Source Fool.com
