JPMorgan Identifies Top Short Stock Picks for H2 2025

In a recent analysis, JPMorgan Chase & Co. (NYSE: JPM) has unveiled its list of top short sale recommendations for the second half of 2025, highlighting nine stocks it anticipates will decline in value. This selection encompasses various sectors, including technology, consumer goods, healthcare, and financial services, underscoring JPMorgan's cautious view on current market conditions.

Among the most notable stocks identified for short selling are Tesla Inc. (NASDAQ: TSLA) and Moderna Inc. (NASDAQ: MRNA). Tesla, valued at approximately $1.01 trillion, has experienced a decline of around 22% year-to-date. Analysts at JPMorgan express concerns regarding Tesla's elevated valuation compared to its peers, even as the automaker is projected to see a third consecutive year of declining earnings. Key factors contributing to this pessimism include diminished electric vehicle (EV) subsidies and underwhelming operating margins. Furthermore, skepticism surrounds Tesla’s ambitious robotaxi initiative, which JPMorgan analysts argue lacks essential sensor redundancy.

Similarly, Moderna has seen a drop of 19% in 2025, despite a recent recovery of over 20%. Analysts cite ongoing cash burn issues, regulatory challenges, and a lack of clear growth catalysts as reasons for their bearish outlook. Although data from TipRanks indicates that the average price target for Moderna suggests a potential upside of 40%, analysts remain unconvinced about a substantial rebound in the stock.

Other stocks included in JPMorgan's short list are Whirlpool Corporation (NYSE: WHR), which has been rated as Neutral but is perceived to carry downside risk following a significant rally of 38% since June. Analyst Michael Rehaut notes that Whirlpool's current valuation exceeds its historical averages by over 15%, raising concerns about sustainability. Despite potential benefits from U.S. tariffs due to its domestic manufacturing, Rehaut believes the stock's performance has outpaced its fundamentals.

Also flagged for short selling are Shake Shack Inc. (NYSE: SHAK), trading at an astonishing 467 times earnings; Mobileye Global Inc. (NASDAQ: MBLY); Intel Corporation (NASDAQ: INTC); Bumble Inc. (NASDAQ: BMBL); Comerica Incorporated (NYSE: CMA); and Rivian Automotive Inc. (NASDAQ: RIVN). Each of these stocks carries an Underweight rating from JPMorgan due to sector-specific challenges or valuation risks.

This report emerges at a time when major market indexes, including the S&P 500 and Nasdaq, have rebounded to record highs. Despite this overall market strength, JPMorgan's identified short positions reflect ongoing concerns regarding policy uncertainty and profit outlooks. Investors can utilize TipRanks' analytical tools to track these recommendations, including consensus ratings, price target forecasts, and Smart Score data, aiding them in navigating potential risks as the latter half of 2025 unfolds.

As the financial landscape continues to evolve, JPMorgan's bearish stock picks serve as a crucial watchlist, highlighting companies where analysts foresee limited upside potential and increasing risks in a turbulent market environment. The implications of these recommendations could influence investor sentiment and trading strategies going forward, particularly as economic indicators and global market trends fluctuate.

In conclusion, the identification of these top short candidates by JPMorgan not only reflects the firm’s cautious stance amid a recovering market but also illuminates the complexities and uncertainties facing investors in the current economic climate. Stakeholders are advised to monitor these developments closely as they could signify broader market trends and investment opportunities in the near future.