Key Takeaways
- JPMorgan analysts this week suggested a long list of ideas for bets that some stocks will fall.
- The suggestions covered companies ranging from restaurants to airlines, dating apps and tech.
With stocks not far from their recent highs, are you looking to bet on which ones might fall?
Some investors look to profit from share prices they consider elevated by making short bets, borrowing shares to sell that they then seek to repurchase when they’re less expensive, pocketing the difference.
Earlier this week, JPMorgan asked its analysts to pick their favorite short ideas headed into the start of the fourth quarter. They handed back a list of 27 stocks, which included those of a major airline and a burger chain. Here are summaries of a few of those picks.
Why This Matters to Investors
Short-selling is a possible tactic for investors who think stocks are more likely to fall than rise. A recent collection of short ideas from analysts at JPMorgan shows that those ideas can be inspired by a range of companies—and reasons.
Southwest Airlines (LUV): The stock is down about 7% this year through Friday’s close, compared to the S&P 500’s roughly 12% climb.
The airline, JPMorgan wrote, is in the early innings of a transformative shift away from its core long-standing brand” and has issued “ambitious” fourth-quarter guidance. Demand trends are promising, the analysts wrote, but they were also concerned about the stock’s valuation.
Visible Alpha’s mean price target, around $31, would suggest little change from Friday’s close.
Shake Shack (SHAK): The burger chain’s shares have lost about a third of their value this year.
JPMorgan raised questions about high menu prices that could limit its growth opportunity, possibly shrinking both its addressable market and the frequency with which people visit.
Visible Alpha’s average price target, at $133, would suggest an over 50% gain from Friday’s close near $87.
Bumble (BMBL): Shares of the digital dating company have fallen nearly 40% in 2025.
JP Morgan analysts worried about declines in the use of the Bumble app and the possibility that marketing expenditures will hurt margins.
The mean price target of analysts tracked by Visible Alpha is about $7, up $2 or 40% from Friday’s close.
Rivian (RIVN): The EV maker’s stock is down close to 4% this year.
JPMorgan expects the recent expiration of federal EV tax credits to weigh on demand, with changes associated with President Donald Trump’s “One Big Beautiful Bill” seen as hitting its ability to sell profitable regulatory credits to other automakers, pressing overall margins.
Visible Alpha’s mean price target on Rivian’s shares is around $14, a 9% rise from yesterday’s close.
Other picks shared by the bank’s analysts included Krispy Kreme (DNUT), which it said was pressed by balance-sheet issues that would hamper its turnaround; insurance company Travelers (TRV), which it said was facing “overly optimistic” consensus estimates; Snapchat operator Snap (SNAP), which it said would struggle to compete for business with social platforms that use AI more effectively; and self-driving auto systems company Mobileye Global (MBLY), which it said had a “premium valuation” unsupported by its revenue growth expectations.
