3 Stocks to Avoid in 2024: Snap, Etsy, and Cava

The stock market has been on a rollercoaster ride in 2024, with some tech giants reporting strong earnings while others are facing challenges. As investors navigate through the market, it’s important to be aware of stocks that may not be the best choices for their portfolios.

One such stock to consider avoiding is Snap (SNAP). Despite a recent 28% gain following a positive earnings report, Snap is still facing significant challenges. The company’s net loss remains high, and its debt levels are a cause for concern. While revenue growth and user numbers have increased, Snap’s path to profitability is still unclear.

Another stock to be cautious of is Etsy (ETSY). The e-commerce platform saw a decline in consolidated gross merchandise sales in Q4 2023, and the company is expecting further declines in the near future. With shares down significantly over the past year, Etsy’s growth prospects are uncertain, especially in the face of an economic downturn.

Lastly, Cava (CAVA) is another stock that investors may want to approach with caution. While the Mediterranean restaurant chain has seen strong growth in recent years, its high P/E ratio and slowing expansion plans for fiscal 2024 raise red flags. With decelerating sales expected, Cava’s stock may face pressure in the coming months.

As investors evaluate their portfolios and make decisions for the future, it’s important to consider the potential risks and rewards of each stock. By staying informed and aware of the challenges facing certain companies, investors can make more informed decisions about where to put their money in the ever-changing stock market.