3 Stocks to Avoid This Week

I’ve been picking stocks to avoid every week, singling out names with a lot to prove in the coming days. My three stocks to avoid last week were on the move…

— up 6%, down 1%, and down 4% — averaging out to a 0.3% increase.

The S&P 500 rose 1.6% for the week, so I was the relative winner on my bearish calls. This week I see Digital World Acquisition Corp. (NASDAQ:DWAC)Pinterest (NYSE:PINS), and PetMed Express (NASDAQ:PETS) as vulnerable investments in the near term. Here’s why I think these are three stocks to avoid this week.

Digital World Acquisition

One of last week’s biggest winners was Digital World Acquisition. The SPAC — or special purpose acquisition company — closed below last month’s IPO price of $10 a share on Wednesday afternoon. It exploded higher in the final two trading days after announcing that it would be joining forces with Donald Trump’s new media company venture. Trump Media & Technology Group said it plans to launch a new social networking platform called Truth Social in the coming months.

Singling out Digital World Acquisition as a stock to avoid isn’t political commentary. We don’t do that here. If anything, polarizing media empires sometimes carve out thin but dedicated and passionate followers. The problem is that the stock more than quadrupled on Thursday, only to double on Friday. The stock soared a…

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