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THE MONEY IDEA💡
4 Stocks to Sell This Holiday Season
Welcome, we are {{active_subscriber_count}} Money Masters and counting!
Wall Street is entering the holiday stretch with fading momentum, stretched valuations, and rising uncertainty around the Fed’s next move, creating the perfect environment to clean up your portfolio before volatility returns. With help from Morningstar’s latest research, we identified four widely held stocks that now look overvalued, vulnerable, or ideal for tax loss harvesting so you can position smarter for 2026.
Let’s dive in.
Tax-loss harvesting sounds much better.
THE MONEY IDEA💡
4 Stocks to Sell This Holiday Season
Bottom Line: A long-time market favorite now trading well above fair value while losing strength into Q4.
Valuation Stretch: Netflix trades at a 37 percent premium despite maturing subscriber growth and rising content spend.
Momentum Shift: Shares are up 19 percent YTD but down 12 percent this quarter, signaling a clear rollover.
Competitive Pressure: Ad-tier competition is intensifying globally, limiting pricing power in 2026 and beyond.
Margin Limits: Profit expansion looks capped as content inflation outpaces efficiency gains.
Star Rating: Still a 2-star stock with no margin of safety as markets rotate away from mega-cap streamers.
Do This Next: Lock in gains and rotate into undervalued AI or infrastructure names with clearer upside.
Bottom Line: Down sharply this year and still overvalued, making it a clean tax-loss harvesting candidate.
Negative Trend: Wingstop is down 20 percent YTD and another 10 percent in Q4, showing accelerating weakness.
Premium Pricing: Shares still sit at a 26 percent premium even as discretionary spending softens into 2026.
Macro Risk: Restaurant chains face cost pressure as wage growth normalizes and food input costs remain volatile.
Cycle Sensitivity: Slowing economic momentum puts fast-casual operators at risk as households tighten budgets.
Portfolio Fit: One of the clearest opportunities to capture losses and offset gains before December 31.
Do This Next: Harvest tax losses now and reallocate into higher-quality income or AI infrastructure plays.
Bottom Line: A volatile growth name with a widening valuation gap and a shaky profitability roadmap.
Q4 Slide: Roblox is up 58 percent YTD but down 34 percent this quarter, one of the steepest declines among major tech names.
Overvaluation: Shares remain 41 percent above fair value despite weaker engagement and slowing time-spent metrics.
Growth Uncertainty: Monetization remains inconsistent, especially internationally where user behavior is harder to predict.
Execution Risk: Expansion into older demographics is flattening, raising questions about long-term revenue durability.
Morningstar View: A firm 2-star rating and one of the clearest examples of a popular stock the market mispriced.
Do This Next: Reduce exposure to speculative software until fundamentals stabilize.
Bottom Line: A crypto-correlated stock with outsized downside risk as bitcoin volatility returns.
Premium Risk: Coinbase still trades at a 16 percent premium even after sliding into 3-star territory.
Q4 Weakness: Shares are down 29 percent this quarter as crypto sentiment cools into year end.
Long-Term Surge: The stock remains up 570 percent since late 2022, leaving room for a healthy correction.
Correlation Problem: Coinbase acts like a leveraged play on bitcoin rather than a stable long-term operator.
Portfolio Impact: As we expect more volatility in Q1, Coinbase is one of the clearest trim candidates across growth portfolios.
Do This Next: If you want crypto exposure, Morningstar suggests considering direct BTC rather than COIN.
Why Coinbase has downside risk.
ACTION PLAN✅
Let’s Make Money Today!
Rebalance Smart: Rotate out of stretched consumer and speculative tech names as holiday volatility picks up.
$NFLX ( ▲ 1.36% ) Trim profits while Netflix trades far above fair value and loses momentum into Q1.
$WING ( ▲ 2.18% ) Harvest tax losses using Wingstop’s deep year-to-date decline to offset gains across your portfolio.
$RBLX ( ▲ 2.48% ) Cut exposure to high-beta software as Roblox remains overvalued despite its sharp Q4 drop.
$COIN ( ▲ 2.96% ) Reduce Coinbase positions and consider more stable ways to gain crypto exposure heading into 2026.
If you’re looking for more smart, actionable ideas beyond this week’s picks, we’ve gathered a short list of other high-quality newsletters worth your time.
See our curated picks here — practical insights on money, work, and life from trusted sources.
QUOTE CORNER📄
Quote of The Week
-Stoic Wisdom
Last Time the Market Was This Expensive, Investors Waited 14 Years to Break Even
In 1999, the S&P 500 peaked. Then it took 14 years to gradually recover by 2013.
Today? Goldman Sachs sounds crazy forecasting 3% returns for 2024 to 2034.
But we’re currently seeing the highest price for the S&P 500 compared to earnings since the dot-com boom.
So, maybe that’s why they’re not alone; Vanguard projects about 5%.
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*Investing involves risk. Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.
The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.