Trading

2 Risky Stocks That Could Send Your $100,000 Investment to $0

Alex Smith

Alex Smith

1 week ago

4 min read 👁 6 views
2 Risky Stocks That Could Send Your $100,000 Investment to $0

A $100,000 portfolio can vanish when you buy businesses that need perfect timing. Risky stocks often lean on fresh capital, optimistic forecasts, and investor mood. Before you swing, stress-test the boring stuff. Check cash burn, debt, and when bills come due. Look for customer concentration and one-product risk. Assume a recession, higher rates, or one bad quarter. If the company cannot survive that, the share price can collapse, and dilution can finish the job. That risk deserves respect, not hype. So let’s look at where these three stack up.

HUT

Hut 8 (TSX:HUT) matters right now because it links two feverish themes: Bitcoin and artificial intelligence (AI) compute. It runs power, data-centre, and mining operations, so the risky stock moves with crypto prices and big infrastructure headlines. In Q3 2025, it generated US$83.5 million in revenue and US$109 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). Those numbers show operating leverage, but also reflect a quarter that benefited from favourable digital-asset conditions and fast sentiment swings.

The bullish pitch says Hut 8 can monetize scarce power and land for large-load data centres, while it keeps optionality in crypto. Recent AI-infrastructure partnership news has added fuel to the story. The bear case stays simple: execution costs money and delays hurt. A bad financing window or a sharp Bitcoin drawdown can squeeze liquidity and sentiment at the same time. When traders set the valuation, the downside can hit fast and stay painful.

ACB

Aurora Cannabis (TSX:ACB) is staying relevant by shifting focus toward higher-margin medical markets, where it can price products better than on Canadian recreational shelves. In fiscal Q2 2026, it delivered $90.4 million in net revenue and $15.4 million in adjusted EBITDA. Investors like that progress, as the sector has rarely produced steady profitability. Medical growth abroad has helped, and the risky stock also runs a plant propagation business that can smooth seasonality. It trimmed debt and focused on cash discipline.

Still, Aurora carries real “hitting $0” risk as the cannabis industry punishes mistakes. Pricing pressure can return, regulators can shift rules, and competition can squeeze shares. Aurora reported a net loss from continuing operations of $53.2 million in the same quarter, which shows how fast revaluations and other charges can swamp operating gains. Management expects year-over-year revenue growth next quarter, driven by 8% to 12% growth in global medical cannabis. If that growth stalls, the market can punish the stock quickly.

Bottom line

Some investors will buy these risky stocks anyway, and that choice can make sense in a small, intentional slice of a portfolio. Hut 8 can outperform when crypto rallies and management lands durable compute contracts without overpaying for power. Aurora can rerate if it keeps turning medical demand into repeatable cash generation and keeps costs tight. Treat these as optional bets, not retirement anchors. Write down your catalyst, set a hard loss limit, and plan an exit before you enter. The market rarely gives a second chance. You can win, but you must survive first.

The post 2 Risky Stocks That Could Send Your $100,000 Investment to $0 appeared first on The Motley Fool Canada.

Should you invest $1,000 in Aurora Cannabis right now?

Before you buy stock in Aurora Cannabis, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Aurora Cannabis wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,827.88!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of January 15th, 2026

More reading

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Related Articles