These 3 Stocks Might Not Survive in 2019

Posted On November 6, 2018 2:44 pm
By: admin

Source: Shutterstock.com/g/bylove

2018 was a lackluster year for stocks due to escalating fears about trade wars and rising interest rates. However, investors should think in terms of decades instead of single quarters or years, and realize that businesses with solid fundamentals usually outperform other types of investments over the long term.

But this doesn’t mean investors should assume companies with deteriorating fundamentals will rebound. Let’s examine three companies with damaged business models, and why their stocks could struggle to survive in 2019.

Blue Apron

Meal kit maker Blue Apron (NYSE:APRN) went public last June at $10 per share. The IPO was poorly timed since it came shortly after Amazon announced its takeover of Whole Foods and started selling its own meal kits. Meanwhile, other big retailers — including Walmart and Kroger –– launched meal kits, and aggressive rivals like HelloFresh fragmented the market.

Blue Apron replaced its CEO, laid off a large portion of its workforce, and signed various promotional and distribution partnerships, but none of those moves prevented the company’s growth from decelerating. A glimpse at Blue Apron’s growth in customers and revenue over the past year explains why the stock now trades around $1.50 per share…

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