Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here are three volatile stocks to steer clear of and a few better alternatives.
Olaplex (OLPX)
Rolling One-Year Beta: 1.44
Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ: OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.
Why Do We Think Twice About OLPX?
- Annual sales declines of 17.3% for the past three years show its products struggled to connect with the market
- Sales were less profitable over the last three years as its earnings per share fell by 50.8% annually, worse than its revenue declines
- Free cash flow margin shrank by 14.7 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
Olaplex’s stock price of $1.18 implies a valuation ratio of 11.9x forward P/E. If you’re considering OLPX for your portfolio, see our FREE research report to learn more.
AMC Networks (AMCX)
Rolling One-Year Beta: 1.08
Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ: AMCX) is a broadcaster producing a diverse range of television shows and movies.
Why Should You Sell AMCX?
- Products and services aren't resonating with the market as its revenue declined by 3.9% annually over the last five years
- Free cash flow margin is anticipated to expand by 1.5 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
AMC Networks is trading at $8.95 per share, or 6.3x forward P/E. To fully understand why you should be careful with AMCX, check out our full research report (it’s free for active Edge members).
Liberty Broadband (LBRDK)
Rolling One-Year Beta: 1.16
Operating across the United States, Liberty Broadband (NASDAQ: LBRDK) is a provider of high-speed internet, cable television, and telecommunications services across various markets.
Why Does LBRDK Give Us Pause?
- Muted 3.1% annual revenue growth over the last two years shows its demand lagged behind its business services peers
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
At $46.34 per share, Liberty Broadband trades at 3.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why LBRDK doesn’t pass our bar.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
