Tesla Motors Inc (TSLA), Netflix, Inc. (NFLX) & Herbalife Ltd. (HLF): Avoid These Hated Stocks

In all honestly, most investors should probably avoid these stocks. Although they are flashy and exciting, they are equally as risky — both from the long and the short side.

Their recent runs are testament enough to the dangers of betting against a stock that’s already heavily shorted — and given that short interest remains relatively high, their incredible runs could easily continue.

But at the same time, investors buying them are playing the lottery: Tesla’s business model remains fundamentally unproven, Netflix’s stock is trading at an absurd valuation, and Herbalife could see significant downside risks in the off chance Ackman happens to be right.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Netflix and Tesla Motors (NASDAQ:TSLA) . The Motley Fool owns shares of Netflix and Tesla Motors and has the following options: Long Jan 2014 $50 Calls on Herbalife Ltd. (NYSE:HLF).

The article Avoid These Hated Stocks originally appeared on Fool.com.

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