Wall Street analysts are often criticized for being preternaturally upbeat. Buy ratings for top companies are abundant, and sell ratings are rare from the so-called “sell side” crowd.
But analysts occasionally do issue critical comments. In fact, J.P. Morgan put out a report last week that highlighted some of the firm’s most “high-conviction” Underweight (meaning Sell) and Neutral (or Hold) recommendations, saying that they are “compelling structural and tactical short ideas.”
In other words, the analysts think the prices of these stocks will go down from current levels.
J.P. Morgan identified a group of 40 stocks that the bank’s analysts are bearish on at current prices. Barron’s took a look at eight on the list cited as short candidates. Two of those eight,Intel and Circle Internet Group, said they had no comment about the J.P. Morgan report. The other six didn’t respond to requests for comment.
Tesla and electric-vehicle rival Rivian Automotivewere two of the stocks that J.P. Morgan noted as short candidates. Analyst Ryan Brinkman cited Tesla’s “sky-high valuation”—despite the stock dropping nearly 25% this year—compared with the rest of the Magnificent Seven. Brinkman added that he expects continued earnings declines and thinks that “reduced EV subsidies threaten already marginal profitability.” He also believes the company’s widely hyped robo-taxi initiative is “likely to disappoint.”
As for Rivian, Brinkman argued that the company’s ability to cut large losses and reduce its free cash outflows “will likely [be] hampered by reduced EV subsidies and tariffs.” Rivian’s stock is flat this year.
J.P. Morgan analysts also, interestingly enough, suggest shorting Circle Internet Group, the stablecoin company that the bank helped bring public in June. J.P. Morgan was one of the lead underwriters for Circle’s initial public offering.
Despite that, analyst Kenneth Worthington noted that while “Circle is a market leader in stablecoins with amazing technology, we view competition emerging and its current valuation as excessive.” Circle’s stock is up more than 500% from its IPO price.
The J.P. Morgan team also still sees more downside for some prominent social media stocks, which it considers shorting plays. Analyst Doug Anmuth said Snapchat owner Snap faces numerous challenges, including “volatile” spending from big brand advertisers and a “poor track record on execution.”
Meanwhile, analyst Cory Carpenter is bearish onBumble, saying that “the online dating category remains structurally challenged” and that “Bumble is early in its turnaround effort.” Both Snap and Bumble have fallen more than 15% this year.
But some of J.P. Morgan’s short recommendations have actually done well in 2025, making them potentially more ripe for a fall. Shares of struggling chip company Intel have rebounded this year, gaining more than 15%.
However, J.P. Morgan semiconductor analyst Harlan Sur isn’t buying the comeback. He thinks Intel “continues to navigate through a challenging period” and is trying to stabilize market share in chips for personal computers and servers, an area in which rival Advanced Micro Devices has more momentum. Intel is also playing catch-up to Nvidia, which has a massive lead in producing chips for artificial intelligence.
Analysts at J.P. Morgan suggest shorting two restaurant stocks that have enjoyed solid years so far: Shake Shack and Cheesecake Factory. Rahul Krotthapalli is concerned that Shake Shack, whose stock is up 8% this year, relies “on heavy marketing support for same store traffic growth.”
As for Cheesecake Factory, which has surged 35% so far in 2025, J.P. Morgan’s John Ivankoe argues that the stock is “more than fully valued.” It trades at about 17 times earnings estimates for this year, slightly above its five-year average. That may be too rich, given that Ivankoe thinks the company’s namesake restaurants have “already achieved peak margins.”
With the broader market back at all-time highs, it’s even more crucial for top Wall Street firms to find companies that are trading at unreasonable valuations and/or have fundamental problems. The aforementioned eight stocks are just a small part of J.P. Morgan’s broader list.
