JPMorgan Identifies Stocks to Sell Short Ahead of New Year

Finance News

JPMorgan Identifies Stocks to Sell Short Ahead of New Year
SHORT SELLINGSTOCK MARKETJPMORGAN

JPMorgan Chase & Co. has released a list of stocks it believes are likely to decline in value heading into the new year, citing factors such as rising interest rates, a strengthening dollar, and investor pessimism towards Big Tech. The list includes a range of companies across various sectors, such as healthcare, technology, consumer goods, and industrials.

  • 📰 CNBC
  • ⏱ Reading Time:
  • 158 sec. here
  • 13 min. at publisher
  • 📊 Quality Score:
  • News: 97%
  • Publisher: 72%

Major stock market averages have faced difficulties over the past two weeks as Treasury yields have climbed and the dollar has strengthened. This broader investor pessimism has seeped into the market, with traders losing confidence in the Big Tech stocks that have fueled much of the market's gains in recent years. Against this backdrop, JPMorgan has issued a list of stocks to avoid, predicting they are likely to experience further losses.

JPMorgan's co-head of Americas research, Claudia Hueston, consulted with the firm's top-ranked U.S. equity research analysts to identify their 'most compelling structural and tactical short ideas' for 2025. These ideas span various sectors, including industrials, healthcare, consumer stocks, and technology. Among the stocks JPMorgan advises against are Novavax, a vaccine manufacturer, and Airbnb, a vacation rental company. Novavax shares dropped as much as 10% on Monday after the company informed investors of expected 2024 revenue between $650 million and $700 million, falling short of the $724.1 million anticipated by analysts. JPMorgan analyst Eric Joseph explained that recent gains driven by bird flu headlines are likely to diminish, refocusing attention on the company's phase 3 Covid + flu program, which faces uncertain execution timelines and regulatory prospects.JPMorgan also expresses reservations about Airbnb, whose stock has struggled since August. While the company reported a modest revenue beat in its third quarter, earnings missed analysts' expectations. Airbnb is currently prioritizing expansion beyond its core markets. JPMorgan analyst Doug Anmuth maintains a neutral rating on Airbnb, acknowledging mixed sentiment and substantial short interest in the stock. He believes shares will decline further due to their elevated valuation, citing margin compression stemming from new initiatives and increased marketing spending as potential risks. Anmuth warns that near-term challenges could arise if Airbnb's 'business reinventions' fail to gain traction and core growth continues to slow. Intel, another stock JPMorgan recommends shorting, has already fallen out of favor with Wall Street, shedding 60% of its value in 2024, marking its largest decline in its 53 years as a public company. Intel has encountered sudden management changes and market losses in several key businesses, failing to keep pace with competitors in the artificial intelligence chip sector.Its shares have continued to decline in 2025, losing approximately 6% so far this year. JPMorgan analyst Harlan Sur rates Intel underweight, stating that the Santa Clara, California-based tech giant is 'navigating through a challenging period as it right-sizes the company while continuing to move forward with its technology/manufacturing product roadmaps.' Other stocks facing JPMorgan's negativity include SiriusXM, a satellite music company, and D.R. Horton, a homebuilder. SiriusXM is grappling with consumer skepticism regarding its value proposition and investor doubts about its ability to foster long-term subscription growth, considering demographic shifts and persistent declines in conversion rates. This could lead to lower earnings before interest, taxes, depreciation, and amortization, along with higher capital expenditures for SiriusXM, according to JPMorgan. SiriusXM shares have already shed more than 8% this year. D.R. Horton, whose customers have been impacted by rising mortgage rates, is predicted to underperform its peers over the next 12 months, primarily due to its relatively high valuation, JPMorgan stated

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

CNBC /  🏆 12. in UK
 

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Citi Identifies Top Stocks to Watch for 2025Citi Identifies Top Stocks to Watch for 2025Citigroup analysts are highlighting stocks poised for strong performance in 2025, emphasizing earnings growth convergence and opportunities in smaller-cap companies. The firm's updated focus list includes AT&T and Boston Scientific, while excluding names like Cheniere Energy and Atlassian.
Read more »

Auto parts stocks outlook for 2025, according to JPMorganAuto parts stocks outlook for 2025, according to JPMorganAuto parts stocks outlook for 2025, according to JPMorgan
Read more »

Quantum computing stocks sell-off accelerates as Zuckerberg becomes latest tech CEO to temper sector enthusiasmQuantum computing stocks sell-off accelerates as Zuckerberg becomes latest tech CEO to temper sector enthusiasmQuantum computing stocks sold off Monday after Meta Platforms CEO Mark Zuckerberg cautioned that quantum computing uses remain years away.
Read more »

Bitcoin Price Drops Over 5%, Joins Sell-Off in U.S. StocksBitcoin Price Drops Over 5%, Joins Sell-Off in U.S. StocksBitcoin experienced a significant price drop of over 5% in the last 24 hours, reaching a low of $96,105. This decline coincided with a sell-off in U.S. stocks, driven by positive economic data.
Read more »

Insurance stocks sell off sharply as potential losses tied to LA wildfires increaseInsurance stocks sell off sharply as potential losses tied to LA wildfires increaseAllState, Chubb and Travelers are the most exposed carriers to insured losses in the wildfires, according to JPMorgan.
Read more »

CNBC Investing Club with Jim Cramer: Stocks Sell Off, Home Depot Rallies, Constellation Brands DropsCNBC Investing Club with Jim Cramer: Stocks Sell Off, Home Depot Rallies, Constellation Brands DropsJim Cramer discusses key market movements, including the impact of a strong December jobs report on Fed rate expectations. He also highlights Home Depot's resilience amidst the market downturn and analyzes Constellation Brands' disappointing earnings report.
Read more »



Render Time: 2025-01-16 14:25:55