2 Consumer Stocks I Wouldn't Touch With a 10-Foot Pole

Core Viewpoint - The current stock market environment, driven by an AI boom and technology profits, resembles the speculative atmosphere of 2021, posing risks for investors in growth stocks [1] Company Summaries Opendoor Technologies - Opendoor has never been profitable, reporting a net income of negative $283 million on a gross profit of $431 million over the last 12 months [3] - Revenue declined by 62% year over year in Q1 2024 as the company reduced operations to remain viable [3] - The business model of buying and selling real estate online is flawed, exacerbated by rising interest rates, and requires significant capital investment [4] - Opendoor's book value per share has decreased by 68% from all-time highs to $1.30, while the stock trades at $2.50, nearly double its book value [4] - There are no redeeming qualities in Opendoor's business model, indicating potential further downside [5] Beyond Meat - Beyond Meat has experienced declining revenue for multiple years, with an 18% year-over-year revenue drop last quarter and gross margins at only 4.9% [6] - The company has reported negative net income since 2020, with the stock down 96% from all-time highs [7] - Consumer interest in plant-based meat products is waning, suggesting a bleak outlook for Beyond Meat's future growth [7]