7 Must-Sell Stocks Before the Mother of All Bear Markets

Market Overview - The Nasdaq and S&P 500 experienced their worst days since 2022 due to disappointing earnings from major companies, with recession indicators showing concerning trends [1] - Corporate bond spreads indicate an economic slowdown, and consumer debt delinquencies are increasing [1] GoPro (GPRO) - GoPro is considered a declining company as the handheld camera market diminishes due to the rise of smartphones with advanced cameras [2] - Revenue fell 8% to $1 billion in 2023, with a further 11% drop to $155 million in Q1 2024 [2] - The company is unlikely to see significant revenue growth, with projections suggesting annual sales may dip below $900 million in the next few years [2] ChargePoint (CHPT) - ChargePoint operates the largest EV charging network in the U.S. but has seen shares drop over 70% in the past year due to stalled revenue growth and increasing losses [4] - Revenue declined 18% year-over-year to $107 million, with a net loss of $71.8 million reported [4] - The company faces intense competition and is burning cash rapidly, leading to skepticism about its future viability [4] Nikola (NKLA) - Nikola is in a challenging position, having executed a 1-for-30 reverse stock split to avoid Nasdaq delisting, yet the stock remains low at around $9 [5] - The company reported a net loss of $147.7 million in Q1 2024 and an annual loss of $966 million in 2023 [5] - Cash reserves are dwindling, with only $345 million available at the end of Q1, raising concerns about its financial sustainability [5] Terran Orbital (LLAP) - Terran Orbital is on the brink of bankruptcy, having signed a precarious $2.4 billion deal with Rivada Space Networks, a company with uncertain financial backing [8][9] - The company reported a net loss of $53.2 million in Q1 on revenue of $27.2 million, indicating severe cash flow issues [9] - The withdrawal of a $500 million acquisition offer from Lockheed Martin further complicates Terran's financial situation [9] LanzaTech (LNZA) - LanzaTech, a carbon recycling company, reported disappointing Q1 2024 earnings, missing both revenue and profit expectations [10] - The company has a significant cash burn of $106 million over the past year and is not expected to break even until at least 2026 [10][11] - Concerns exist regarding the sustainability of its international projects and the potential impact of political changes on green tech subsidies [11] GameSquare Holdings (GAME) - GameSquare's acquisition of FaZe Clan raises questions about its strategic direction, as FaZe's relevance has declined [12] - Q1 2024 revenue was $23.5 million, down from $24.1 million a year ago, with gross margins slipping to 15.7% [13] - The company is perceived as chasing trends without a clear path to profitability, suggesting a need to refocus its strategy [13] Beyond Meat (BYND) - Beyond Meat reported a net loss of $54.4 million in Q1 2024, with an 18% year-over-year revenue decline [14][15] - Gross margins remain low at under 5%, and analysts have become increasingly bearish on the stock [14] - The company struggles to achieve profitability even in its home market of California, raising doubts about its broader business model viability [15]