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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here are two volatile stocks that could reward patient investors and one that could just as easily collapse.
One Stock to Sell:
Vimeo (VMEO)
Rolling One-Year Beta: 1.69
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 Is VMEO Not Exciting?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Revenue base of $415.4 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Push for growth has led to negative returns on capital, signaling value destruction
Vimeo’s stock price of $7.78 implies a valuation ratio of 41.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why VMEO doesn’t pass our bar.
Two Stocks to Watch:
FTAI Infrastructure (FIP)
Rolling One-Year Beta: 1.61
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ: FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
Why Do We Like FIP?
- Annual revenue growth of 57.1% over the last four years was superb and indicates its market share increased during this cycle
- Projected revenue growth of 69.2% for the next 12 months is above its two-year trend, pointing to accelerating demand
At $5.11 per share, FTAI Infrastructure trades at 1.9x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Reddit (RDDT)
Rolling One-Year Beta: 2.13
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE: RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
Why Will RDDT Outperform?
- Has the opportunity to boost monetization through new features and premium offerings as its domestic daily active visitors have grown by 33.7% annually over the last two years
- Earnings per share grew by 38.6% annually over the last three years, massively outpacing its peers
- Free cash flow margin increased by 35.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Reddit is trading at $208 per share, or 54.1x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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