tl;dr
JPMorgan Chase has adopted a bearish outlook on several prominent tech and restaurant stocks despite record highs in the S&P 500. Analysts warn that Tesla and Rivian face valuation and subsidy challenges, while Circle Internet Group may correct due to competition and overvaluation. Snapchat and Bumb...
JPMorgan Chase has shifted to a bearish stance on several high-profile tech and restaurant stocks, even as the S&P 500 reaches record highs. Analysts from the financial giant identify these stocks as potentially overvalued and suggest they could be attractive shorting opportunities for investors.
Ryan Brinkman of JPMorgan highlights Tesla (TSLA) as having a "sky-high valuation," warning of significant earnings declines following cuts to government EV subsidies. He also doubts the success of Tesla's robo-taxi plans. Rivian Automotive (RIVN), Tesla’s competitor, is also under scrutiny, with Brinkman noting that efforts to enhance its balance sheet might be hindered by lowered subsidies and tariffs.
Kenneth Worthington points to Circle Internet Group (CRCL), a leader in stablecoins, as ripe for correction due to emerging competition and an inflated current valuation despite its strong technology.
In the social media space, Doug Anmuth criticizes Snapchat (SNAP) for ongoing challenges such as erratic spending by key advertisers and a history of execution issues. Cory Carpenter places a bearish rating on Bumble (BMBL), citing structural challenges in the online dating sector and an early-stage turnaround for the company.
Additionally, JPMorgan identifies Cheesecake Factory (CAKE), Intel (INTC), and Shake Shack (SHAK) as stocks likely to face downward corrections, reflecting caution across varied market segments.