While it’s not dominating the news cycle like it did during the meme stock craze of 2021, the Reddit (NYSE:RDDT) message board r/WallStreetBets is still going strong. The sub-Reddit is still a main gathering place for retail investors to discuss, debate and dissect stocks and share ideas. Many of the comments, memes, and videos posted to the site are extremely funny, as is a lot of the chatter and back-and-forth.
While WallStreetBets is best known for executing short squeezes on troubled stocks of companies such as GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC), the current talk on the message board tends to focus on a lot of bad investments that should be avoided. Much of the discussion tends to be about recent earnings reports and layoffs at companies, as well as the short and long-term outlooks for certain stocks. As always, much of the thinking on the site runs counter to conventional wisdom and viewpoints on Wall Street.
Here are three stocks to sell that even r/WallStreetBets won’t touch.
Boeing CO. (BA)
A quick scroll on WallStreetBets reveals plenty of jokes, memes and funny videos trolling aircraft manufacturer Boeing Co. (NYSE:BA) over its quality control and safety issues. One video labeled “Boeing’s quality control process” shows a junky airplane being welded together and then pushed down a dirt runway off a man-made jump. Joking aside, the folks on WallStreetBets don’t seem overly fond of BA stock right now or think it would be a wise decision to buy shares at current levels.
Because of its safety issues, Boeing stock is down nearly 30% this year and trading nearly 50% lower than where it was five years ago. The drop in share price has led some analysts to recommend that investors buy BA stock on current weakness. Many analysts point out that Boeing remains part of a global duopoly in commercial aircraft manufacturing along with Airbus SE (EPA:AIR) of France. But the WallStreetBets crowd is having none of it. One post on the Reddit site reads: “Boeing: Not only can’t they land. They can’t take off!”
Peloton Interactive (PTON)
Another stock getting lampooned and criticized on WallStreetBets is Peloton Interactive (NASDAQ:PTON). The maker of internet connected fitness bikes and treadmills saw its stock soar during the Covid-19 pandemic when we were all locked down at home. But not today. PTON stock has fallen 97% from a peak reached at the end of 2020. The company’s shares now trade as a penny stock, having plunged 25% already in 2024. Despite the stock’s drop, nobody on WallStreetBets seems to want to buy the dip.
In a post titled “Peloton smelling a bit fishy,” one Redditor calls out the company for burning through $200 million a quarter, its CEO quitting, and undertaking a new round of layoffs. “I’m expecting them to announce a dilution event in the near future,” reads the post concerning Peloton. It ends with the author stating that they’ve taken out a three-month put position against PTON stock at a strike price of $2. The stock at $2 would be more than 50% lower than where it’s currently trading.
Intel (INTC)
Another stock being raked over the coals on WallStreetBets is microchip and semiconductor company Intel (NASDAQ:INTC), whose stock is the worst performer in the S&P 500 index this year despite the fact that chip stocks, as a whole, are booming right now. One post showing a chart of INTC stock, which has fallen 37% year to date, reads simply: “Record chip stocks run and meanwhile, Intel…” The company’s share price has been torpedoed by poor earnings and an expensive pivot to becoming a chip foundry.
Another separate post entitled “INTC outlook and market cap vs assets” asks the question: “Why is foundry for Intel so important, despite only being a minor part of the company?” Comments that follow the post are littered with phrases such as “…there’s still a lot of downside risk” and “…you wont see a profit until 2027.” While opinions are a bit mixed concerning INTC stock, the general sentiment on the message board appears to be one of negativity and frustration with the chipmaker and its stock.
On the date of publication, Joel Baglole did not have (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.
