3 Stocks to Sell in 2026

Market Overview - The stock market is experiencing a positive start in 2026, with the S&P 500 up 1.3% in the first week, largely influenced by the U.S. government's removal of Venezuelan President Nicholas Maduro [1] - However, there are underlying issues as some high-growth stocks face competitive pressures, valuation challenges, and business growth risks [1] Sector Analysis - The technology sector, particularly high-earnings-multiple tech stocks, is under scrutiny due to increased volatility and wider distribution of outcomes [2][3] - Institutional investors are likely to pull back from long-duration equities when safer investment opportunities arise, especially in a rising interest rate environment [2] Company-Specific Insights Uber Technologies - Uber's stock has declined by 4.65% over the past month, facing significant challenges from the rise of autonomous vehicles, which could disrupt the ride-sharing industry valued at $273.75 billion in 2025, projected to grow to nearly $4,450.34 billion by 2034 at a CAGR of 36.30% [5][6] - Competitors like Tesla, Waymo, and Zoox are heavily investing in robo-taxis, which could undermine Uber's market position and profitability [6] - Melius Research downgraded Uber's stock to Sell from Hold, reducing its price target from $100 to $73 due to intensified competition in autonomous vehicles [7] Rivian - Rivian's stock has seen a price increase of 10.59% over the past month, but it is recommended for investors to sell due to its unprofitable business model [8] - Rivian is described as a "capital incinerator," losing money on every vehicle sold and needing constant capital raises, which dilutes shareholder value [9] - The company faces significant competition from legacy automakers and market leader Tesla, which can afford to engage in price wars [9] Affirm - Affirm's stock has also increased by 10.59% over the past month, but it is viewed negatively due to rising delinquency rates in consumer credit [10][11] - The company, along with other "Buy Now, Pay Later" firms, is at risk as borrowing costs rise and default rates increase, lacking the competitive advantages of major banks [11] Investment Recommendations - Investors are advised to consider trimming or selling positions in Uber, Rivian, and Affirm due to the potential for downside risks as the market progresses into 2026 [12][13]