Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.

2024-02-24 11:30

2 Stocks I’m Never Buying Again

Once you’ve taken a significant loss or been disappointed for several quarters, that stock and company will stay tarnished forever.

Perhaps it’s for a good reason too. If the stock price has fallen by that much it indicates that the company is just not performing at a high level. Generally speaking, you don’t want those companies in your portfolio anyway. Here are 2 stocks I’ve recently said that I will never buy again.

Rivian ($9.04|6.10%)

My apologies to everyone who has read my articles, but I was wrong. Wrong for now anyway as Rivian has disappointed shareholders yet again this quarter. Not only is the company still losing more than $40,000 per vehicle made, but it is also forecasted to deliver fewer vehicles than expected for the rest of 2024. I once believed this company could challenge Tesla ($168.29|-1.11%) but am now having some serious second thoughts. At this point, you have to wonder if any automaker will ever be able to compete with Tesla.

So am I really done with Rivian forever? The stock is trading at an all-time low and the company has a lot of work to regain the confidence of shareholders. Rivian needs the upcoming unveiling of the R2 EV to win over investors. The R2 is anticipated to be the vehicle that challenges Tesla’s Model Y at a much more affordable price point. Even still, it is not expected to be delivered until at least 2026. For now, I’m done with Rivian. I’ll be watching closely to see how the company performs over the next few quarters, but in my mind, the stock is un-buyable until the R2 hits the road.

Fiverr (NYSE: FVRR)

Remember this stock during the pandemic? It was one of the hottest on the market. Since then, the stock has fallen by nearly 30% over the past five years and by nearly 50% over the past 52 weeks. So what happened? Well, the gig economy just isn’t as popular when people aren’t stuck inside their homes. People also started going back into the office which caused a lot of side hustles to end.

Personally, I’ve used Fiverr as a writer. Do I like it? Sure, it is a great place to connect and build a network of clients. Sooner or later, most sellers want to move off the platform as they realize Fiverr takes 20% off each order. For freelancers, 20% is a lot of income to lose. In the most recent quarter, Fiverr saw a decline in active buyers and has been forced to try and make more money off of their sellers. Trying to take more off of each order from sellers is not going to end well for this company, and so far, it hasn’t ended well for the stock. I owned it for a while during the pandemic, but boy am I glad I sold it. Never again with Fiverr.