3 Struggling Stocks Down More Than 50% This Year That Look Cheap But Come With Plenty of Risk

Core Viewpoint - The stock market is experiencing volatility, leading to concerns about the economy, and while buying stocks during downturns can be beneficial for long-term investors, not all struggling stocks will recover. Group 1: SoundHound AI - SoundHound AI has seen its stock price decline over 55% since the beginning of the year after a significant rise of 836% last year, primarily due to Nvidia selling its stake in the company [3][4] - The company reported a revenue increase of 85% to $84.7 million last year, but also posted an adjusted net loss of$69.1 million, which is 19% higher than the previous year, raising questions about its future growth potential [5] - There are concerns regarding SoundHound's ability to compete in a crowded AI market, which may hinder its organic growth despite its current revenue generation [4][5] Group 2: Maravai LifeSciences - Maravai LifeSciences' stock has also dropped around 55% this year, following a surge in demand for its products during the pandemic, particularly for mRNA vaccine development [6] - The company reported a revenue of $202.8 million for the nine months ending September 30, 2024, which is a 6$197.5 million, including significant goodwill impairment charges [7] - With uncertain future profitability and a lack of positive indicators, the stock may continue to decline as the year progresses [8] Group 3: Victoria's Secret & Co. - Victoria's Secret has experienced a 59% decline in stock price so far in 2025, attributed to disappointing earnings and a bleak outlook [9] - The company projects sales for the current fiscal year to be between $6.2 billion and$6.3 billion, indicating minimal growth compared to the previous year, where sales were $6.2 billion, reflecting less than 1% growth [10] - Management's optimistic forecast assumes improving economic conditions, which may not materialize, potentially leading to even lower sales figures if the economic environment does not improve [11][12]