2022 has been a disaster. Over the past 11 months, inflation has reached its highest level in 40 years. There were fears of recession. Nearly 63% of American consumers were living paycheck to paycheck. The markets were crushed. Home sales have begun to fall at the fastest rate in decades. Consumer spending plummeted. Russia invaded Ukraine. China has seen rare turmoil over COVID mandates. North Korea rocked the cage. The Federal Reserve has become far too aggressive in the fight against inflation. Congress has split. All the while, investors panicked, leaving many of us in the worst case. While we can’t tell you with absolute certainty what 2023 has in store for us, we can share our list of the best stocks to sell.
Stocks for sale: Bumble (BMBL)
Bumblebee (NASDAQ:BMBL) is a booming online dating app and one of the best selling stocks. In the third quarter, the company increased its total number of paying users, average total revenue per user, and net revenue. However, he only earned 14 cents per share. Bumble blames larger macro uncertainties for the weakness. It’s also not confident that its product roadmap will accelerate growth enough to outweigh rising costs ahead. Unless it has a strong marketing philosophy to grow its user base, investors are paying too much for uncertain growth.
The Bumble app owes its success to its powerful messaging channel. However, clients must manage inflation, which reduces their disposable income. People will spend less on drinks and going to bars with those they meet online. This will hurt Bumble’s subscription revenue in the coming months.
Stocks for sale: Credit Suisse (CS)
Swiss credit (NYSE:CS) damaged its reputation months before the 2022 bear market. In July 2021, an independent external firm investigated the Archegos scandal. Archegos has accumulated huge bets on various stocks using swaps, a risky derivative. Those bets didn’t pan out, forcing Archegos to liquidate over $20 billion.
After the investigation, the company learned that it had failed to effectively manage risk in prime service businesses. It had no risk escalation process necessary to avoid huge losses. A year later, wealthy investors withdraw funds from Credit Suisse. This will result in a loss of approximately $1.6 billion in the fourth quarter. The Swiss lender has more net outflows of assets than deposits. As of November 11, 2022, Credit Suisse had lost approximately 6% of its assets under management.
CS will cut 5% of its workforce to cut costs. He sells 889 million shares to raise billions of dollars. This will punish the shareholders. CS stock is one of the best stocks to sell.
Stocks for sale: DocuSign (DOCUMENT)
DocuSign (NASDAQ:DOCUMENT) flourished when the volume of e-signatures for contracts skyrocketed during the pandemic. These days, business costs are too high as the company rebuilds its operations.
DocuSign will reduce its workforce by approximately 9%. It will take a charge of $30 million to $40 million in its third and fourth quarters of fiscal 2023. This will align the business with the challenging macroeconomic environment ahead. Still, the software company has questionable leadership. Additionally, DocuSign’s cost reduction efforts will slow the company’s growth. This is causing investors to avoid equities as activity slows. Additionally, customers will no longer purchase DocuSign CLM (contract lifecycle management) solutions when their business deteriorates.
carpooling company Lyft (NASDAQ:LYFT) continues to lose money. In the third quarter, it lost $1.18 per share, or $422 million, on a GAAP basis. Although the loss includes an impairment charge of $135.7 million, investors should avoid this stock. Low profit margins are going to get worse from here.
Drivers compensate for higher cost pressures by imposing surcharges on customers. For example, Lyft projects an $82 million increase in its cost of revenue due to insurance. Since Lyft has a shallow moat, customers will easily find a substitute. This includes walking, cycling or hailing a taxi instead.
Lyft is investing in a rewards program to retain drivers and reduce customer churn. For example, he increased the cash back on gas rewards associated with his Lyft debit card. Drivers have access to cash back on gas. Additionally, those with gold and platinum levels get higher rewards. Lyft’s rewards program adds costs. As it loses more customers, its investors will suffer more losses.
Match Group (MTCH)
Matching group (NASDAQ:MTCH) saw a 2% increase in the number of payers in the third quarter, to 16.5 million. Still, he reported earnings per share of 44 cents. Shares of MTCH trade at a price-earnings ratio of 133 times. Chances are extremely high that the owner of multiple dating apps will disappoint investors.
Match recognizes ever-changing market conditions. He is convinced that Match is agile enough to retain its customers. CEO Bernard Kim said Tinder could diagnose and react to such changes. However, it will need to increase its marketing spend to support new product launches. For now, investors are wary. After MTCH stock rebounded from the low of $40.23, the rally stumbled. Speculators took profits when the shares peaked at $52.
Sofi Technologies (SOFI)
Sofi Technologies (NASDAQ:SOFI) is a fintech the bears are strongly betting against. The short free float is 11.4% while the short ratio stands at 2.12. SOFI stock traded at a 52-week low last week. President Biden’s extension on the federal student loan payment suspension for another six months has added more uncertainty.
Moreover, the decrease in Bitcoin (BTC-USD) in November due to the bankruptcy of FTX, hurt Sofi’s addressable market. As of November 25, SoFi was still offering up to $100 in Bitcoin to contestants. Already, a group of lawmakers are urging financial regulators to review SoFi’s crypto trading activities. Any new regulations or restrictions against SoFi will hurt its addressable market.
Fintech companies have fewer assets and fewer regulations than traditional banks. Amid the coming economic downturn, investors will be betting on the latter instead of speculating on unproven emerging fintech. Speculators will no longer rely on SoFi’s vertical integration and new product launches for unproven growth. Investors should sell the stock before it risks falling further from here.
Enlarge video (ZM)
Enlarge video (NASDAQ:ZM) is the poster of the pandemic. With no flukes and declining video calls, ZM stock is at risk of losing value. The Zoom calendar can be useful in helping its customers schedule meetings. But Office 365 is one of many cloud software services that offers email and calendar apps. Customer renewal rates could weaken in the next quarter. Business customers may be hesitant to work from home or in a hybrid work environment. This would reduce the need for Zoom meetings. This would reduce the Zoom subscription demand.
As of the date of publication, Chris Lau had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.