Stocks to sell

3 AI Stocks I Wouldn’t Touch With a 10-Foot Pole

Every sector has clear winners and losers, a reality that holds even in the dynamic realm of artificial intelligence (AI). With the release of groundbreaking technologies, including ChatGPT, earlier this year, AI has taken the market by storm. This surge has made it challenging to sift through the hype and identify stocks that offer sustainable growth opportunities at a reasonable price. As we gear up for a potential bull run, it’s crucial to separate the wheat from the chaff by knowing which AI stocks to sell.

To aid in this endeavor, I’m here to guide you through the murky waters of AI investments. The goal is to save you time and, more importantly, spare you the heartache by spotlighting these underperformers. Stay tuned as we dive into the depths of AI stocks, ensuring your investment decisions pay many dividends over the long term.

BlackLine (BL)

Source: Gmx Pixel /

BlackLine (NASDAQ:BL) has been one of the top players in the realm of financial automation solutions. However, its journey as a mid-cap software company seems to have entered a mature phase, marked by limited catalysts and an exceptionally competitive market landscape. Moreover, it’s one of the AI stocks to sell because its attempts to rejuvenate itself through AI might be a tough sell in a rapidly evolving and competitive market.

BlackLine’s prospects remain somewhat dim, facing tough competition from industry titans such as SAP (NYSE:SAP) and Workday (NASDAQ:WDAY). More worrisome is that it relies mainly on deals from resellers, a strategy that could dilute its long-term revenue potential. It also relies heavily on SAP, which accounts for a quarter of its revenue, despite being a direct competitor. Coupled with a substantial debt load, these factors significantly impede BlackLine’s financial maneuverability.

Veritone (VERI)

Source: Sarah Holmlund /

Veritone (NASDAQ:VERI), a generative AI company, ambitiously claims its aiWARE suite can effectively revolutionize a myriad of sectors with actionable insights. This sector is ripe for innovation, yet the sector’s performance suggests a mismatch between ambition and execution. Underwhelming financial outcomes mar Veritone’s narrative. In the third quarter, it delivered a  concerning 6% dip in revenues to $35.1 million, raising eyebrows about the company’s operational efficiency.

Furthermore, software sales, the lion’s share of Veritone’s business, experienced an alarming 29% slump. This decline is particularly disconcerting, given the high expectations from enterprise AI applications. Most notably, the net loss ballooning from $4.9 million to a staggering $20.9 million year-over-year remains a stark indicator of the challenges ahead. Veritone, despite its optimistic mission statement and broad applicability claims, struggles to translate its vision into tangible success, leaving its investors pondering its future trajectory. (AI)

Source: ArtemisDiana/Shutterstock (NYSE:AI), an enterprise software firm specializing in AI, exemplifies the volatility and risks inherent in the AI-driven market. Initially recognized as a true leader in AI applications, its stock experienced a meteoric rise in 2023, soaring in value from just $11 to $44 within months. The growing excitement over AI applications in many sectors, including healthcare, fueled this surge.

The stock’s swift climb gave way to an equally rapid descent, with it plummeting from its 52-week high. Moreover, the skepticism is compounded by the company’s recent performance. Despite earlier predictions of non-GAAP profitability by the end of the current fiscal year, CEO Thomas Siebel had to backtrack on these forecasts following the September earnings release. This development has further fueled doubts over the company’s financial stability and growth prospects.’s story is a cautionary tale over the perils of market hype, especially in the AI sector. Investors are advised to exercise caution and consider the rising costs and uncertainties before building a position in the company.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.