JPMorgan has named 40 stocks on which it recommends taking short positions, despite the continued positivity in the markets. The report, which is at Oninvest's disposal, presents the results of a survey of the bank's leading analysts on U.S. securities. They selected "compelling shorting ideas" for the second half of 2025 - in terms of both fundamental reasons and short-term market conditions. Which stocks made the list?

Tesla

JP Morgan analysts note that Tesla's disproportionately high, "exorbitant" valuation creates significant correction risks. The multiplier, reflecting the ratio of the carmaker's price to expected earnings,  is 142 against the average for the "Magnificent Seven" of 25.2. The ambitious robotaxi rollout project, the bank predicted, is likely to disappoint investors as it requires significant investment in sensor systems with no guarantee of a quick payback. In addition, the company faces the threat of reduced subsidies for electric cars, which could lead to a decline in its already weak margins: Tesla's profit margin before interest and tax expenses is already inferior to that of General Motors and Ford, and the bank's forecast for 2025 suggests a third consecutive drop in earnings per share. 

JPMorgan's target price on Tesla shares is $115, which implies a 64% collapse of quotes relative to the closing level of trading on July 14.

Rivian

Rivian, a niche player in premium and commercial electric trucks and SUVs, will face obstacles in implementing plans to cut operating losses and free cash flow outflows, according to analysts at JPMorgan. As in the case of Tesla, the company will be hindered by the reduction of government subsidies for the purchase of electric vehicles, as well as the introduction of import duties on auto components, the investment bank warns;

He expects Rivian shares to fall 22% to the closing price on July 14.

Circle

Circle, which issues the second most popular USDC steibloin, also looks overvalued, according to JPMorgan, given the slowdown in issuance growth in early 2025 and the uncertain regulatory backdrop. The expectation of the adoption of the law on stablecoins in the U.S. supports Circle's share price, but any deviation from expectations in this matter or further intensification of competition from other issuers may become a catalyst for the quotations to fall. Analysts warn that even a strong technological position and a broad ecosystem around USDC do not guarantee that the current valuation will be maintained in the event of a drawdown in activity in the digital currencies segment.

Investment Bank forecasts Circle's stock to fall to $80, a 61% drop from its July 14 closing price.

Snap

Snap, which owns a messenger of the same name with a key share among the youth audience, is having trouble monetizing its growing user base. According to JPMorgan, the shift to ads targeting direct sales and specific user actions remains a challenge for the company, especially on a foundation of volatile brand spending. Chat and communication features provide the bulk of engagement, but they convert poorly into revenue, the investment bank points out. And reminds that Snap has a weak history of realizing its stated plans.

In May this year, JPMorgan lowered its target price on Snap shares to $7, which implies a 27% drop from current quotes.

Intel

Despite the recovery of Intel shares this year, the company is still going through a difficult period, trying to reduce the gap in the field of technological processes and at the same time stabilize market share in the segments of chips for personal computers and servers, said analysts JPMorgan. In this area - client and server processors - competitor Advanced Micro Devices is demonstrating higher rates, besides Intel is still trying to catch up with Nvidia, which is a strong leader in the production of chips for artificial intelligence, Barron's reminds;

Investment Bank set a $20 target price on Intel stock, which is 14% below the current market price.

Moderna

Moderna, one of the largest biotech companies, is facing a revenue drain from coronavirus vaccine sales and a lack of new popular drugs. According to JPMorgan, the company has no obvious growth drivers for the rest of 2025: programs to develop vaccines against influenza or other viruses are still in the early stages. The constant cash burn, combined with regulatory hurdles and legal risks, prevents a positive valuation in the short term, the analysts pointed out. 

They forecast the company's value to decline 22% based on a target price of $25.8 per share.

What other stocks are included in the list

In the industrial sector: Werner Enterprises, Kennametal, Middleby.

In the consumer sector: Beyond Meat, Choice Hotels International, Installed Building Products, LGI Homes, NVR, Stanley Black & Decker, Whirlpool, Cheesecake Factory, Shake Shack.

In Energy: Canadian Solar, ChargePoint Holdings, Nabors Industries, Vital Energy.

In the financial sector: Lincoln National, Lineage, Howard Hughes Holdings, Comerica, Texas Capital Bancshares.

In healthcare: Precigen, Myriad Genetics, Integra LifeSciences Holdings.

In the basic materials sector: CF Industries Holdings.

In Media: SBA Communications, Bumble, Paramount Global, Altice USA.

In the technology sector: Mobileye Global, Super Micro Computer, Lightspeed Commerce, Western Union, Skyworks Solutions.

This article was AI-translated and verified by a human editor

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