Been watching these two stocks and honestly, they both look like they could sink even deeper from here. Not the kind of investment thesis you want to be holding right now.

Let me break down what's happening. Sarepta Therapeutics got absolutely hammered last year - down over 80% - and there's a solid reason for it. Their main product Elevidys, which was supposed to be a game-changer for Duchenne muscular dystrophy patients, ran into serious trouble. Two patients died from liver failure after treatment, which is obviously a massive red flag. The company had to slap a black box warning on it and restrict who can even get the drug. Demand predictably collapsed.

The numbers tell the story. They're guiding for $1.86 billion in revenue for 2025, down from $1.9 billion the year before. Without the Elevidys safety issues, they should have grown meaningfully. Instead they're flat or declining. Here's what concerns me though - another pipeline candidate also had patient deaths from liver failure. Even though they killed that program, it signals a deeper issue. When you've got two separate therapies causing similar fatal outcomes, investors are right to be nervous. The stock could easily sink further as reality sets in that this isn't just an Elevidys problem.

Their newer candidates in early-stage studies might eventually pan out, but we're talking years away, not near-term catalysts. For 2026 specifically, I don't see the catalyst that turns this around.

Now look at Teladoc Health - this one's been a slow-motion disaster. Remember when telemedicine was the hot narrative during the pandemic? Teladoc was supposed to own that space. But here's what actually happened: every major healthcare system and insurance company just built their own telehealth platforms. Why use Teladoc when you've already got your own infrastructure? Market share got carved up fast.

Their flagship product BetterHelp, which was supposed to be the growth engine, is actually losing paying members. That's not a minor headwind - that's a fundamental problem with unit economics or competitive positioning. They've done acquisitions trying to fix this, including UpLift for mental health coverage, but nothing's moved the needle yet. Broad insurance coverage for BetterHelp remains elusive, which means they can't scale it.

International expansion is their latest hope, and yeah, revenue growth has been slightly better overseas in recent quarters. But here's the thing - they're going to run into the exact same competitive pressures abroad that crushed them domestically. Local players will build competing platforms. It's not like the telemedicine moat got wider, it got narrower. The stock looks positioned to sink further as these expansion hopes fade.

Both of these companies have real structural problems, not just temporary headwinds. Sarepta's safety issues aren't going away, and Teladoc's competitive advantages have eroded. Neither one looks like a compelling value play at current levels. If anything, the risk is downside from here.