Fed Chairman Jerome Powell has said it, and Wall Street isn't going to like it. The Federal Reserve has decided not to cut interest rates, citing discouraging developments in the fight against inflation. Therefore, now is a good time to consider avoiding selling Nasdaq stocks as long-term interest rates rise.
The Nasdaq closed in a sea of red on Tuesday, ending the worst month of the year for the stock market. Many had expected such an outcome following reports of hot inflation and a job market. Additionally, there are investors in show-me mode for the generative AI stocks that led the market to big gains last year. Therefore, it's best to err on the side of caution and sell your Nasdaq shares to avoid the possibility of further shareholder value loss in the future.
Beyond Meat (BYND)
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beyond meat (NASDAQ:bind) runs a plant-based meat company that is losing support from both customers and investors. After a brief period of demand due to diet fads, demand has declined and stagnated for several years. Despite the efforts of those in the plant-based industry, their efforts have not borne fruit. Only 15% of U.S. households purchased plant-based products last year, but that will increase by 19% in 2022, according to the report.
BYND was once the gold standard in the plant-based meat market, but it's no longer what it once was. The company has faced many obstacles this year, and sales are definitely negative, making it a very worrying earnings metric. With year-over-year sales and net profit margins of -18% and -98%, respectively, it's not hard to see why the company's stock price fell 50% last year. It fell 18% in the last month alone. BYND stock is likely to fall another 10%, according to analysts at Tipranks. Additionally, BYND stock's minimum price target indicates an additional 50% decline from current levels.
Nano Dimension (NNDM)
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nano dimension (NASDAQ:NNDM) is an Israel-based 3D printing company looking to bring its disruptive solutions to multiple industries. Today it's a penny stock, but it once traded at prices that surprised even the biggest market leaders. NNDM stock was traded on the Nasdaq in March 2016 and reached an all-time high of $88.90 on March 22nd. In contrast, he can now buy NNDM stock for just $2.45 at the time of writing. This is 97% cheaper than the full stock price. -Highest value.
NNDM has grown at a healthy pace over the years, with a five-year revenue growth rate of 155%. However, the company's stock price did not follow suit, with NNDM's stock price falling more than 66% during the same period. Growth rate has slowed recently and NNDM is trying to position itself as an AI player to maintain shareholder investment.
The 3D printing market has great potential, but we are still in the nascent stages of understanding how this technology will develop. But that's not what the market wants, and it won't happen anytime soon.
Canopy Growth (CGC)
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canopy growth (NASDAQ:CGC) is a pioneer in the cannabis sector, which has witnessed a significant increase in prices in recent times. Reports that marijuana has been reclassified as a less dangerous drug in the United States led to a significant rise in CGC stock and related stocks. As a result, CGC stock's valuation has significantly inflated, trading at more than 4.66 times estimated sales. Wall Street predicts a worrying downside of 67%, based on the average forecast for a “moderate sell” rating.
The current rally is based on pure speculation surrounding the legalization of marijuana at the federal level. CGC has little else to offer investors, with revenue and bottom line estimates over the past several quarters largely missing. Losses have ballooned, with free cash flow coming in at negative $71.8 million on a 12-month basis. Additionally, the company recently sold its headquarters and placed key business segments under creditor protection. Need I say more?
On the date of publication, Muslim Farooq did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are subject to InvestorPlace.com Publishing Guidelines.
