If you’re wondering what stocks to sell this quarter, you’re in the right place. Nothing lasts forever, not even stocks. During a 2018 all-hands meeting, Amazon (NASDAQ:AMZN) founder and then CEO Jeff Bezos famously said: “I predict one day Amazon will fail. Amazon will go bankrupt.” Apple (NASDAQ:AAPL) was on the verge of going bankrupt in 1997 before rival Microsoft (NASDAQ:MSFT) saved the then struggling company with a $150 million investment. History is littered with once famous companies and stocks that no longer exist.
Since the turn of the century, a number of once high-flying stocks have gone the way of the dodo bird. Names such as Blockbuster Video, Pets.com, and Enron, to cite only a few. These companies, and others, failed after losing their competitive edge, being mismanaged or engaging in fraud. So, which stocks are next to disappear? What companies are most in danger of ceasing operations in the near-term. There are plenty of concerns to choose from. Here are seven stocks that could be heading six-feet under.
Stocks to Sell: Tilray Brands (TLRY)
Cannabis producer Tilray Brands (NASDAQ:TLRY) is awash in red ink. The company recently reported a quarterly loss of $105 million and lowered its forward guidance as its sales continue to crumble. The company said that it lost 12 cents a share for the fiscal quarter ended Feb. 29. Revenue totalled $188.3 million. While the latest results were better than a loss of $1.20 billion and revenue of $145.6 million recorded a year earlier, the latest earnings print shows that Tilray Brands remains in financial straits.
In terms of guidance, Tilray said that it expects earnings of only $60 million to $63 million for its entire 2024 financial year as its cannabis sales dry up. The newest guidance is down from earlier estimates of $78 million in earnings. Insult to injury, management at Tilray said that they no longer expect positive free cash flow this financial year. TLRY stock continues to slide lower, with the share price dropping 21% after its latest financial results and guidance were made public.
The stock is now down 97% over the last five years and trading at less than two bucks.
Trump Media & Technology Group (DJT)
Aside from its association with former president Donald Trump, there’s not much to recommend Trump Media & Technology Group (NASDAQ:DJT). The company is barely afloat, having reported a 2023 net loss of $58 million on just $4.1 million in revenues. Since going public in late March of this year through a special purpose acquisition company (SPAC) deal, DJT stock has largely collapsed. The share price is currently 60% below its 52-week high and has fallen 50% since March 27 of this year.
Complicating matters is the huge allotment of stock given to former president Trump. In all, Donald Trump’s stake in the media company stands at $4 billion based on the current share price. He owns more than 100 million. The shares that Donald Trump owns are subject to a lock-up period that prevents him from selling them during the first six months following the company going public. But there is speculation that he will sell his stake in the media company as soon as possible. What happens to DJT stock then?
Stocks to Sell: Paramount Global (PARA)
It’s never good when board members resign from a company en masse. But that’s what recently happened at Paramount Global (NASDAQ:PARA) when four board directors announced their departure together. Dawn Ostroff, a former Spotify (NYSE:SPOT) executive; Nicole Seligman, former president of Sony Entertainment (NYSE:SONY); Frederick Terrell, an investment banker; and Rob Klieger, an attorney, are each leaving the board. The resignations come as Paramount Global tries to sell itself.
Since the start of the year, Paramount has been involved in aborted merger talks with Warner Bros. Discovery (NYSE:WBD), received a $26 billion all-cash takeover offer from private-equity firm Apollo Global Management (NYSE:APO) that the board declined, and, most recently, entered into exclusive discussions with privately held Skydance Media about a potential takeover or merger. Skydance has entered into a 30-day exclusive negotiating period with Paramount’s board, though a deal is not guaranteed.
If all goes well, Paramount Global will be purchased, taken private, and its stock delisted. Or, a merged company could survive as different publicly traded entity. What is clear at this point is that Paramount’s future looks tentative at best. PARA stock is down 75% over the last five years, including a 43% decline in the last 12 months.
Nordstrom (JWN)
Speaking of going private, the family behind U.S. department store chain Nordstrom (NYSE:JWN) has created a special committee to evaluate bids aimed at taking the department store chain private. This as the 123-year-old company struggles with a decline in sales as shopping increasingly moves online. Last summer, Nordstrom closed all of its locations in Canada after less than a decade in the country, shutting down multiple outlets following huge liquidation sales.
The special committee has been set-up to evaluate proposals aimed at taking Nordstrom private, delisting JWN stock in the process. The company has been down this road before. In 2017, private-equity firm Leonard Green & Partners came close to taking Nordstrom private but the deal fell through because of a dispute over price. The latest take private action comes after Nordstrom-issued weak guidance for the year ahead amid soft demand, lagging sales, bloated inventory levels, and increasing markdowns.
JWN stock is down 52% over the past five years.
Stocks to Sell: GameStop (GME)
It wasn’t long ago that video game retailer and meme stock favorite GameStop (NYSE:GME) was talking about becoming the “Amazon of gaming.” Such talk has since faded amid a failed turnaround strategy, successive earnings misses, and ongoing share price declines. Despite repeated efforts, GameStop has not managed to move its business online and meaningfully shrink its retail chain of video game stores that are seeing less foot traffic.
At the end of March, GME stock plunged 18% after the company reported weak financial results for the final quarter of 2023 that included the year-end holiday shopping season. GameStop announced earnings of 22 cents and revenue of $1.79 billion. Analysts on Wall Street had expected earnings of 30 cents per share and sales of $2.05 billion. Hardware and accessories sales fell 12% year-over-year while software sales declined 31% in the quarter. The company’s sales have steadily eroded as consumers purchase games online.
The newest turnaround plan will see GameStop CEO Ryan Cohen invest the company’s excess cash in stocks and cryptocurrencies, a move that has made more than a few analysts and investors cringe. In the last 12 months, GME stock has fallen 49%, including a 39% pullback so far in 2024.
Canopy Growth (CGC)
Canopy Growth (NASDAQ:CGC) is another cannabis producer that is in dire straits and has landed itself on this stocks to sell list. In recent months, the company has sold its corporate headquarters, issued more stock to raise money, and placed part of its business under creditor protection. Canopy Growth’s latest earnings showed a net loss of $216.8 million. That compares with a net loss of $264.4 million a year earlier. Revenue for what was the company’s fiscal third quarter totalled $78.5 million, down 8% from $84.9 million a year earlier.
Canopy Growth continues to struggle with declining sales and a loss of market share. Over the past five years, CGC stock has plunged 98%. Last December, the company executed a reverse stock split to artificially raise its share price. The company consolidated its shares on a one-for-10 basis on Dec. 15. Reverse stock splits are, rightfully, seen by markets as an act of desperation by companies that are trying to artificially boost their share price, often to avoid being delisted from a stock exchange, in this case the Nasdaq.
Express (EXPRQ)
Clothing retailer Express (OTC:EXPRQ), a fixture at American shopping malls, has filed for Chapter 11 bankruptcy and plans to close more than 100 stores. The company, whose portfolio of brands includes Bonobos and UpWest Express, listed assets of $1 billion against liabilities of $10 billion in its bankruptcy filing. As part of the bankruptcy process, the company is closing 95 Express retail stores and about a dozen UpWest stores. In all, the company operates 530 Express retail and Express Factory Outlet stores nationwide.
In business since 1980, Express has struggled with slowing consumer spending and a shift to online shopping. The company said that it has received a commitment for $35 million in new financing from existing lenders and plans to conduct business as usual while it goes through a restructuring process. Privately held brand management firm WHP Global, which owns fashion label Anne Klein, took a 7.4% stake in Express last year. But to look at the stock price, it appears to be only a matter of time for Express.
This year alone, EXPRQ stock has fallen 90% and now trades deep down on the penny stock league tables, making it one of those stocks to sell ASAP.
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.