With Nasdaq stocks to sell, speculative stocks in fast-growing industries like artificial intelligence, crypto mining, and electric vehicles may be what first comes to mind.
However, while there are stocks in these industries well worth pressing the “sell” button on, it’s important to note the Nasdaq Exchange, while associated strongly with growth stocks and tech stocks, has listings for a wide variety of stocks.
According to Finviz, over 4000 stocks are Nasdaq-listed. The Nasdaq is also the world’s second-largest stock exchange by market cap, second only to the New York Stock Exchange.
As such, the list of Nasdaq stocks runs the gamut, from mega-cap to micro-cap, from new school to old school, and from speculative growth to deep value.
As we’ll see below, alongside some questionable AI, crypto, and electric vehicle plays trading on the Nasdaq exchange, there are quite a few Nasdaq stocks to sell that fit into this other, wider category.
eXp World Holdings (EXPI)
eXp World Holdings (NASDAQ:EXPI) is a real estate services company. The company is both a real estate brokerage firm and a provider of technology/lead generation services to real estate agents.
EXPI stock took a dive when the pandemic-era housing boom cooled down in 2022, but shares have held up reasonably well in the past year. Expectations run high that lower interest rates will spur a housing market comeback, either this year or next year.
Earnings forecasts for eXp World Holdings call for earnings to soar from 24 to 44 cents per share between 2024 and 2025, presumably because of a rate-cut rebound.
However, with the Federal Reserve still “monitoring the situation” with interest rates, you may not want to wager that this earnings recovery for EXPI will take shape so quickly, especially as shares trade at a pricey 30.6 times this 2025 forecast.
Robinhood Markets (HOOD)
Some of the Nasdaq stocks to sell are stocks favorited by retail traders using platforms like Robinhood Markets’ (NASDAQ:HOOD) brokerage firm, but HOOD itself is also on this list.
Since late November, shares in the company have more than doubled in price.
This rebound in retail market speculation, especially in areas like crypto, can be attributed to the increase in demand boosting Robinhood’s fiscal results. For instance, for Q4 2023, the company positively surprised investors, by reporting positive earnings for the period.
Yet while an end to “crypto winter” (ironically, taking shape near the start of astronomical winter in the northern hemisphere) has been a boon for Robinhood and for HOOD stock, this may prove fleeting.
Shares now trade at a rich 77.7 times forward earnings. Any sort of slowdown in crypto/stock trading activity could spark big disappointment, and a big reversal for this stock.
Lucid Group (LCID)
Shares in many electric vehicle manufacturers trade on the Nasdaq, but among the larger Nasdaq electric vehicle stocks, Lucid Group (NASDAQ:LCID) is the one most deserving of a sell rating.
Although I’m bearish on Rivian Automotive (NASDAQ:RIVN), and suggest that “watch and wait” is the best move with Tesla (NASDAQ:TSLA), LCID stock has the greatest downside risk.
Largely, because the company is caught in a dilution spiral. The company has for years struggled to increase production, find demand for its existing production capacity, and move toward becoming profitable.
Based on the electric vehicle maker’s latest quarterly results, things are getting worse, not better. With this, Lucid will likely keep raising capital through the sale of new shares to its majority owner, Saudi Arabia’s Public Investment Fund.
Barring material improvements to Lucid’s operating performance, this has, and will continue to, place heavy pressure on LCID shares.
Riot Platforms (RIOT)
Bitcoin (BTC-USD) has been booming since the start of the year.
Presumably, that would be good news for Bitcoin mining companies like Riot Platforms (NASDAQ:RIOT), but there’s a good reason RIOT has zigzagged rather than surged in price during this time frame.
While first sparked by the launch of Bitcoin ETFs, the continued wave has been sustained by the upcoming Bitcoin halving event.
While the halving may or may not provide a continued boost for BTC prices, the halving, which will reduce mining rewards by 50%, is a major challenge for crypto mining companies.
Despite Riot’s ambitious expansion plans (which may outweigh the impact of halving), there is high uncertainty over future results. Sell side forecasts for 2025 earnings range widely. If you want to profit from mainstream adoption of crypto, consider buying BTC itself. Additionally, think about selling RIOT stock, which is one of the Nasdaq stocks to sell here.
Roku (ROKU)
Over the past month, investors have bailed on Roku (NASDAQ:ROKU) shares.
While some of this has had to do with the mixed reaction among analysts and investors about the streaming TV company’s latest fiscal results, some recent merger news has been the main culprit.
Following Walmart’s (NYSE:WMT) announced acquisition of smart TV maker Vizio (NYSE:VZIO), concerns run high about the impact of this deal on ROKU stock.
The retailing giant may achieve significant cost and growth synergies from this deal at Roku’s expense, as Guggenheim Securities’ Michael Morris has argued.
Roku is already operating in the red. The company is anticipated to stay unprofitable until at least next year. As the Walmart/Vizio tie-up could further delay (or even prevent) Roku’s efforts to become consistently profitable, it may be time to pull the plug on ROKU shares.
Symbotic (SYM)
Among AI stocks, Symbotic (NASDAQ:SYM) is one of the top Nasdaq stocks to sell.
Since the AI boom kicked off early last year, shares in this warehouse automation technology company have soared alongside the trend, rising from the low teens to (at one point) prices over $60 per share.
However, SYM stock has started to pull back. As Thomas Yeung and InvestorPlace earnings reported on Feb. 5, the market reacted negatively to Symbotic’s mixed guidance issued in its latest quarterly earnings release.
Slowing growth could continue to be troublesome for shares. With a triple-digit forward multiple, shares could correct 50% or even more, and still be considered richly priced.
That’s not to say that this will happen, but as this factor harms SYM’s risk/return proposition, consider it best to sell/stay away.
Wendy’s (WEN)
Wendy’s (NASDAQ:WEN) has made headlines recently, and not in a good way. Last month reports surfaced that the fast-food chain had plans to use surge pricing at its locations starting next year.
However, following backlash, the company quickly clarified its plans to use digital menu boards, stressing that it does not intend to implement surge pricing.
This may be good news for fans of the Baconator and the Frosty. However, for WEN stock investors, this news may be little more than cold comfort.
Why? Despite the company addressing surge pricing fears (which could have been detrimental to store traffic), a myriad of other issues could keep shares under pressure, making this another Nasdaq stock to sell.
As a Seeking Alpha commentator recently argued, these include declining same-store sales, too much leverage on its balance sheet, and a rich valuation despite these challenges.
On the date of publication, Thomas Niel held Bitcoin. He did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Artificial Intelligence, Consumer Discretionary, Retail, E-Commerce, Automotive, Electric Vehicles, Financial, Fintech, Real Estate, Restaurant, Software, Communications, Media, Streaming, Technology
