2 Toxic Stocks to Sell Right Now

Shares in Alibaba Group Holding (NYSE: BABA) and AMC Entertainment Holdings (NYSE: AMC) are popular among retail investors, ranking among the top 100 widely held on the Robinhood Markets platform. But despite the hype, both companies carry a high level of risk that could leave investors badly burned. Let's explore how aggressive regulation in China and poor fundamentals could put downside pressure on both companies. 

I was previously bullish about Alibaba stock because of its dominant position in Chinese e-commerce and compelling valuation (now just 18 times forward earnings). However, the collapse of China's second-biggest property developer, China Evergrande Group, highlights an alarming level of regulatory uncertainty in the country, and Alibaba is already on the chopping block. 

Image source: Getty Images.

Continue reading

Source Fool.com