3 Stocks I'd Avoid at All Costs
There is never a shortage of high-quality stocks to buy, but there's also an argument to be made that there's never a shortage of investments not to buy. Ambarella (NASDAQ: AMBA), Freshpet (NASDAQ: FRPT), and Funko (NASDAQ: FNKO) are three names that I think investors should be careful with in sizing up their next stock purchases.
All three have recently hit new highs, but their near-term prospects aren't as rosy as their stock charts suggest. I'm staying away from shares of these three companies, and I feel you should do the same. Let's go over the reasons why I think Ambarella, Freshpet, and Funko are stocks to avoid.
Chip stocks can be cyclical beasts, and there was a time when Ambarella seemed to be bucking the trend. The provider of low-power, high-def video compression and image processing solutions was in the guts of the hottest wearable cameras, drones, security gear, and automotive sensors. If there was a hot trend involving tiny cameras, Ambarella was there, cranking out heady growth and margins you don't typically see in the cutthroat chip business.
Source Fool.com
