Newspapers and retail stores, including Blockbuster, Circuit City, Bed, Bath and Beyond, and Sears are among the most famous casualties of tech changes in the last 20 years. Other firms that have fallen on hard times due to new technologies include Nokia (NYSE:NOK), GameStop (NYSE:GME) and many movie theater owners. Now, with the popularity of streaming and the sector itself becoming an extremely competitive, low-margin business, we may see conventional TV and streaming companies struggle going forward. Companies in another very competitive, low-margin sector—the electric vehicle space—are also likely to face tough times. With that said, here are three stocks to sell before Christmas.
DISH Networks (DISH)
Satellite TV operator DISH Networks (NASDAQ:DISH) is one of the conventional TV companies rapidly losing customers due to the streaming revolution, and it seems that the firm’s “Plan B” isn’t working too well either.
The company shed 64,000 net subscribers from its satellite and Sling streaming TV unit. Dish’s newer business, its wireless phone endeavor, fared much worse, shedding 225,000 customers. Overall, the company reported a per-share loss of 26 cents, and, to make matters even more problematic, it has more than $20 billion of debt.
Dish is slated to combine with another satellite TV player, EchoStar (NASDAQ:SATS), by Dec. 31. But with EchoStar losing broadband customers in Q3 and reporting a 17% decline in its Q3 sales versus the same period a year earlier, the deal probably won’t offer any relief for the owners of DISH stock.
DISH tumbled 33% on Nov. 6, but I believe it will fall significantly further by Dec. 25.
Lucid (LCID)
Luxury electric vehicle maker Lucid (NASDAQ:LCID) has trouble generating vehicle demand. The automaker delivered only 1,457 EVs last quarter, changing little from the 1,404 sedans it provided customers in Q2.
The company instituted rather sharp price cuts on Nov. 6—another indication that Lucid is still having trouble enticing customers to buy its vehicles. Specifically, it slashed the cost of its Air Touring vehicle from $95,000 to $87,500 and cut the price of the Air Pure AWD from $82,400 to $74,900.
Continuing Tesla (NASDAQ:TSLA) price cuts, elevated interest rates, and rapidly rising demand for BMW (OTC:BMWYY) and Mercedes EVs are also all likely undermining Lucid’s performance.
As of Nov. 6, LCID stock had tumbled 15% in the previous month and 33% in the last three months. But given the company’s demand issues and signs that those problems will get worse before they get better, the shares have much further to fall.
Paramount Global (PARA)
Locked in a bitter battle with other streaming companies and suffering from falling profits due to cord-cutting, Paramount Global (NASDAQ:PARA) stock tumbled 22% in the month that ended Nov. 6.
The company’s earnings per share from continued operations, excluding some items, fell from 39 cents to 30 cents last quarter during the same period a year earlier. Meanwhile, its top line only inched up 3% year-over-year last quarter.
On Nov. 6, Bank of America carried out a double downgrade of PARA to “underperform” from “buy” and slashed its price target from $32 to $9.
The bank cited tough competition in the streaming sector and Paramount’s inability to sell assets despite its efforts to do so as reasons for the downgrade.
Given the downgrade, Paramount’s uninspiring Q3 results and continued tough competition in the streaming sector, PARA is a stock to sell before Christmas.
On the date of publication, Larry Ramer 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.
