3 Growth Stocks to Sell in July Before They Crash & Burn

Core Insights - Declining revenue, excessive valuation, and rising net losses are indicators suggesting that certain growth stocks should be sold to avoid further losses [1] Company Summaries Zoom (NASDAQ: ZM) - Zoom experienced significant growth during the pandemic, with stock prices soaring over 700% in less than a year, but has since faced a 14% year-to-date decline as competition increases [2][3][15] - The company reported only a 3.2% year-over-year revenue increase in Q1 of fiscal 2025, indicating a slowdown in growth [8] - Currently, Zoom's stock is approximately 90% below its all-time high, and despite a P/E ratio of 22, the financials suggest a troubling outlook [8] Workhorse (NASDAQ: WKHS) - Workhorse saw a remarkable 1,500% gain during the pandemic, but the electric vehicle bubble has burst, leading to a 78% year-to-date decline and a 97% drop over the past five years [4][10] - The company reported a 21% year-over-year revenue decline from $1.7 million to $1.3 million in Q1 of 2024, with net losses growing to $29.2 million [17] - Workhorse's financial situation raises concerns about its viability, as it lacks a solid investment thesis given its significant losses relative to revenue [17] Etsy (NASDAQ: ETSY) - Etsy's stock has declined by 27% year-to-date as the company struggles to maintain high growth rates post-pandemic [6] - The company reported a 3.7% year-over-year drop in gross merchandise sales in Q1, with only 0.8% revenue growth attributed to increased fees and advertisements [18] - Net income for Etsy decreased by 15.5% year-over-year, indicating challenges in sustaining its growth trajectory [18]