The 10 worst stocks of 2025

Quick Overview

The video analyzes the 10 worst-performing stocks of 2025 based on a hypothetical list, highlighting that investor behavior during capex booms—specifically the AI boom—often mirrors past bubbles like the railway and internet booms, leading to asset price peaks before investment declines and subsequent market sentiment shifts.

Key Points: The video reviews a list of the "10 Worst Stocks of 2025," starting with Fiserv (FISV, down 67% YTD) and The Trade Desk (TTD, down 66% YTD). The speaker notes that Lululemon Athletica (LULU, down 51% YTD) is facing an identity crisis due to a conflict between the founder's vision (Super Girl focus) and the CEO's vision (Mindful Athlete focus). The analysis draws five lessons from historical capex booms (Railway, Electrification, Internet, Oil), noting that current AI spending patterns follow a similar S-shaped adoption curve, suggesting a peak in capex spending may be near. Lesson #3 highlights that debt is now an increasingly important source of financing for AI capex, citing Meta's $27B data center financing deal and Oracle tapping the bond market for $18B. Lesson #4 warns that asset prices peaked before investment declined in past booms, suggesting current AI stock valuations might be premature as capex rolls over. The speaker is personally shifting his portfolio to be more defensive, advising viewers to put product/brand back at the center, empower creative leadership, and stop chasing Wall Street at the expense of customers (Lululemon's alleged mistake). The presenter also mentions that he is personally avoiding apparel companies like Deckers (DECK, down 54% YTD) due to perceived quality issues and competition from Hoka, and is staying away from Fintech (Fiserv) due to intense competition.

Context: The presenter is reviewing a hypothetical list titled "The 10 Worst Stocks of 2025," which appears to be derived from an analysis of S&P 500 companies that have performed the hardest year-to-date. The discussion centers on applying lessons learned from historical capital expenditure (capex) booms—such as the railway, electrification, internet, and oil booms—to the current Artificial Intelligence (AI) boom, emphasizing that past booms often end in busts when investment peaks before actual technology adoption plateaus.