Three Stocks That Former Congressman Tom Suozzi Was Wrong to Buy
Former Congressman Tom Suozzi regularly trades the stock market. He had reported over 320 trades in the past three years, including some transactions like buying $100,000 - $250,000 worth of Morgan Stanley (MS:US) shares in November 2021.
However, Mr. Suozzi was also betting on some high-growth stocks that took a beating last year as the Fed was forced to aggressively raise interest rates to curb decades-high inflation. For instance, the former Congressman Suozzi was buying Upstart Holding Inc (UPST:US) stock on May 05 when it closed at $89.04.
Upstart shares closed at $13.22 after falling about 97% from their all-time high in October 2021. Upstart is a lending platform that uses artificial intelligence (AI) to provide consumer loans. Given that business conditions significantly deteriorated in the environment of rising interest rates, Upstart shares crashed to an all-time low of $12.01 in December of 2022.
Similarly, Mr. Suozzi, who served as the U.S. Representative for New York's 3rd congressional district from 2017 to 2023, also invested between $15,000 - $50,000 in Affirm Holdings (AFRM:US).
The San Francisco-based company provides buy now pay later (BNPL) services and was also affected by rising rates. Mr. Suozzi was buying AFRM stock on the day it closed at $146.13 while shares closed in the year 2022 at $9.67.
Another stock that Mr. Suozzi was wrong to buy Spotify (SPOT:US). The audio-streaming giant saw its stock fall over 65% in 2022 with Mr. Suozzi buying shares in 2021 when they were trading above $200 per share, and on some occasions, above $300. Spotify stock closed the last year at $78.95.
