Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead.
fuboTV (FUBO)
Share Price: $3.63
Originally launched as a soccer streaming platform, fuboTV (NYSE: FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
Why Are We Wary of FUBO?
- Performance surrounding its domestic subscribers has lagged its peers
- Suboptimal cost structure is highlighted by its history of operating losses
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 10.8 percentage points over the next year
At $3.63 per share, fuboTV trades at 143.4x forward EV-to-EBITDA. To fully understand why you should be careful with FUBO, check out our full research report (it’s free).
Soho House (SHCO)
Share Price: $6.59
Boasting fancy locations in hubs such as NYC and Miami, Soho House (NYSE: SHCO) is a global hospitality brand offering exclusive private member clubs, hotels, and restaurants.
Why Are We Hesitant About SHCO?
- Performance surrounding its members has lagged its peers
- Cash burn makes us question whether it can achieve sustainable long-term growth
- 16× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Soho House is trading at $6.59 per share, or 7.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SHCO doesn’t pass our bar.
Vimeo (VMEO)
Share Price: $4.34
Originally launched in 2004 as a platform for filmmakers seeking a high-quality alternative to YouTube, Vimeo (NASDAQ: VMEO) provides cloud-based video creation, editing, hosting, and distribution software that helps businesses and creators make, manage, and share professional-quality videos.
Why Does VMEO Give Us Pause?
- Annual sales declines of 1.5% for the past two years show its products and services struggled to connect with the market during this cycle
- Subscale operations are evident in its revenue base of $415.1 million, meaning it has fewer distribution channels than its larger rivals
- Negative returns on capital show that some of its growth strategies have backfired
Vimeo’s stock price of $4.34 implies a valuation ratio of 24.3x forward EV-to-EBITDA. If you’re considering VMEO for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
