Investors Cautioned Against Buying Struggling Stocks

Investors should exercise caution in buying stocks, particularly Tilray Brands, Moderna, and Plug Power, which are highlighted in a new report as poor investment choices. These companies face significant challenges that may hinder stock performance.

Date: 08-02-2025

AI Rating: 4

Investment Viability Issues

The report highlights three companies—Tilray Brands, Moderna, and Plug Power—as stocks to avoid for investors. Each company faces unique challenges impacting their financial viability and potential for future growth.

Tilray Brands

Tilray has seen a drastic decline of over 94% in its share price over five years, primarily due to the stagnant progress in U.S. marijuana legalization. Despite attempts to diversify into alcohol, the company continues to face significant cash burn and mounting losses. Investors are cautioned against the likelihood of further valuation declines.

Moderna

Moderna generated substantial revenue from its COVID vaccine but has missed opportunities to diversify its product portfolio. Expectations for this year's revenue have been dramatically reduced to between $1.5 billion to $2.5 billion, significantly lower than previous projections. This situation raises concerns regarding profit margins and sustained revenue growth, making it hard for investors to identify potential recovery catalysts.

Plug Power

Plug Power's stock has plummeted from highs exceeding $70 to under $2, accompanied by alarming operational losses exceeding $720 million in the first nine months of 2024. With only $94 million in cash remaining, the company's financial situation is dire, overshadowing potential growth in hydrogen fuel technologies.

Given the gloomy outlook for these companies, investors would be wise to seek alternatives in healthier stocks that exhibit more stable fundamentals.

Stocks: TLRY MRNA PLUG