2 Stocks I’m Avoiding for the Next Bull Market
I write a lot about stocks that are on my radar or that come to my attention. It’s easy to talk about stocks you want to buy or add to because as a long-term investor, it’s in our nature to be bullish. But so many of us struggle to see the bearish side of things. We’ve all made investing mistakes in our lives: you just need to make sure that the stocks you pick correctly outperform your mistakes.
So which stocks should you avoid even in a bull market? It’s hard to choose, especially since I have a tech focus for my portfolio. Here are two stocks I decided that I want no part of for the next bull market.
Instacart (NASDAQ: CART)
Call me crazy, but I’ve never bought into the trend of getting someone to do your shopping for you. I mean I understand that it saves time for people who simply just do not have any to spare. But really? Paying people to do your grocery shopping for you?
Maybe I’m in the minority here but I don’t really want other people touching my groceries. It’s not just that though. The business itself seems like it relies on a lot of moving parts and if it’s really up to grocery delivery, I’d much rather just invest in a company like Uber (NYSE: UBER). The stock itself is trading at a reasonable valuation with a price-to-sales ratio of just 2.40. But where’s the growth going to come from? The company is already having difficulty growing its revenues and its first earnings call was nothing to call home about it. In fact, CART might even appear to be a better short right now. I could be missing the thesis altogether here, but I’d rather be wrong about that and tie my money to better investments.
Pinterest (NASDAQ: PINS)
I will preface this by saying that I haven’t really used Pinterest as much as I should. But maybe that is a part of the bear thesis here: why should I be using it? As someone who works on the internet quite a bit, I have never been tempted to even look at a Pinterest board. Granted, I might not be the target demographic but that’s already a limitation on the total addressable market.
I understand the allure of Pinterest but I just don’t know if it can stand the test of time like other social media platforms. It’s done well on the past couple of earnings calls but I think that’s just because the stock has fallen to the point where there is very little downside. Pinterest could overhaul its entire platform and become one of the hottest new apps and I still wouldn’t have any interest in using it. For myself, that’s a major reason to be bearish on the stock and because of that, Pinterest is one stock I do not plan on adding anytime soon.