Two Stocks I'd Avoid at All Costs
Investing in stocks is a great way to grow your wealth overtime. Consider, for instance, that over the past five years, the S&P 500 index is up by about 50%. It would be difficult to earn such returns by putting your money in a savings account. Despite the potential for significant capital appreciation, though, the stock market obviously presents some risks. Indeed, not all stocks are created equal, and some stocks are best avoided. Let's consider two such stocks: eBay (NASDAQ: EBAY) and Canopy Growth (NYSE: CGC).
eBay was one of the pioneers of the growing e-commerce industry, and to this day, the company remains a major player in that industry. However, as competition has gotten stiffer, eBay's prospects have looked increasingly murky, for two major reasons. First, the company seems to be losing some of its market share. Over the past two years, eBay's gross merchandise volume (GMV), the total dollar value of transactions conducted on its platform, has decreased. eBay's GMV was $24.4 million in the fourth quarter of 2017. During its most recent quarter -- the third quarter of 2019 -- eBay's GMV was $21.7 million. Why does this matter? eBay described GMV as a "significant factor" that affects its net revenue, and as this figure drops, the company's top-line growth is likely to be unimpressive.
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Source Fool.com
