3 Popular Stocks That Could Wipe Out a $100,000 Nest Egg

Popular stocks can feel like a warm blanket. Everyone talks about it, headlines keep coming, and you start to think a big drawdown cannot happen because “so many people own it.” That is exactly how a nest egg gets crushed. The real danger isn’t popularity, but a mix of high expectations, fragile balance sheets, and stories that need perfect execution. If revenue slows, margins disappoint, or financing dries up, a stock can fall fast and stay down for years. So let’s look at some to watch.

LSPD

Lightspeed Commerce (TSX:LSPD) sells payments and point-of-sale software to retailers and restaurants. It looks like a simple “modern commerce” story, but the last year has reminded investors that software names live and die by trust in the growth curve. Lightspeed has worked hard to tighten its focus and prove it can grow without burning cash, yet the stock still swings hard on sentiment. When the market gets nervous, it tends to punish anything that feels optional, even if the product stays sticky.

The latest results show progress, but also explain the risk. In its fiscal second quarter 2026 update, Lightspeed reported revenue of $319 million, up 15% year over year, and it generated $25.5 million in cash flow from operations with adjusted free cash flow of $18 million. It also raised its fiscal 2026 outlook, which helped the story. However, the wipeout scenario comes from a simple problem: if growth slows or margins wobble, the market can re-rate it quickly. Even with a much more reasonable valuation than in the boom years, it still needs clean execution.

ATZ

Aritzia (TSX:ATZ) meanwhile sells fashion, and that can be both a growth driver and a trap. When demand hits, it prints cash and the stock rips. When demand fades, inventory builds, discounting rises, and sentiment flips overnight. Over the past year, the stock has leaned into boutique growth and digital momentum, and investors have rewarded it because the brand has stayed hot in Canada and the United States. That popularity can lull people into forgetting how quickly apparel cycles change.

Aritzia’s most recent quarter looked strong. It delivered record net revenue of $1 billion in fiscal Q3 2026, up 43% year over year, and net income rose to $138.9 million, or $1.16 per diluted share. Those numbers explain why it feels unstoppable right now. The wipeout risk sits in the expectations. Aritzia trades like a premium growth name. If a warm winter, weaker consumer spending, or a fashion miss hits at the wrong time, that multiple can compress fast, even if the company stays solid.

GLXY

Galaxy Digital (TSX:GLXY) looks popular for a different reason. It gives investors a liquid way to bet on crypto activity, plus it has been building a data-centre business that could become a second engine. That mix can sound like the best of both worlds, but it can also become the worst of both worlds if crypto turns down while infrastructure spending ramps up.

In its fourth quarter and full year 2025 release, Galaxy reported a net loss of $482 million and diluted earnings per share (EPS) of negative $1.08 for Q4, alongside revenue of $10.2 billion. That is not a small bruise, and can permanently change investor confidence. The “hope” side of the story sits in the data-centre build. Reports say it aims to deliver 133 megawatts of capacity to CoreWeave in the first half of 2026, and it has approval for additional capacity that brings total authorization to 1.6 gigawatts. Yet the wipeout scenario is simple. If crypto stays cold, losses could continue, and the tech stock could get ugly in a hurry.

Bottom line

Could these be buys anyway? Yes, but only for the right person. Lightspeed can work if you believe in the turnaround. Aritzia can work if you accept that fashion wins are never permanent. Galaxy can work if you want a leveraged bet on crypto plus a real infrastructure pivot. If your goal is to protect a $100,000 nest egg, you don’t need to avoid these stocks forever. You just need to treat each one like a power tool. Useful, but unforgiving if you get careless.

The post 3 Popular Stocks That Could Wipe Out a $100,000 Nest Egg appeared first on The Motley Fool Canada.

Should you invest $1,000 in Aritzia Inc. right now?

Before you buy stock in Aritzia Inc., consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Aritzia Inc. 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

• 2 Overhyped Stocks That Could Turn $100,000 Into Nothing
• 2 Exceptional Stocks for Your $7,000 TFSA Contribution in 2026
• Momentum Is High, and These 3 Stocks Could Benefit the Most in 2026
• 2 No-Brainer Growth Stocks to Buy Right Now for Less Than $500
• Up 123% in 3 Years, Can Aritzia Stock Continue to Beat the TSX Index in 2026?

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.