Two Weakened Tech Stocks That Could Sink Further in 2026

The investment landscape in 2025 was brutal for certain names. Sarepta Therapeutics (NASDAQ: SRPT) and Teladoc Health (NYSE: TDOC) both experienced significant declines, as investors fled these beaten-down equities. While steep selloffs sometimes create buying opportunities, these two companies face persistent headwinds that suggest their downward trajectory may continue. Neither represents a compelling investment case heading into 2026.

Teladoc Health: Competitive Pressures Mount

Teladoc Health’s struggle with the remote healthcare sector has become increasingly apparent. After riding a wave of enthusiasm during the pandemic’s early stages, the company now battles formidable competition. Established healthcare networks and major tech ecosystems quickly replicated Teladoc’s telemedicine model, fragmenting the market and eroding the company’s competitive moat.

The deterioration is most visible in the company’s BetterHelp virtual therapy platform, once positioned as a growth catalyst. Instead, the platform has experienced declining paying members and stagnant revenue. Management has pursued acquisitions—most notably UpLift—and broader insurance partnerships to reverse course, yet results have remained disappointing. International expansion efforts, while showing modest revenue acceleration, will likely encounter the same competitive dynamics that weakened domestic performance.

Revenue growth remains anemic, profitability eludes the company, and accumulated losses continue mounting. The structural challenges facing telemedicine are not easily solved through M&A or geographic expansion alone. Investors should expect Teladoc’s shares to continue their southbound trajectory throughout 2026.

Sarepta Therapeutics: Safety Shadows Loom

Sarepta Therapeutics presents a different but equally troubling narrative. After plunging more than 80% in 2025, the biotech firm grapples with serious safety setbacks surrounding its flagship product Elevidys. This gene therapy, designed to address the root causes of Duchenne muscular dystrophy (DMD), initially represented genuine promise in treating a devastating rare disease.

However, multiple patient deaths linked to liver failure forced the company to implement a boxed warning and restrict access to higher-risk populations, including non-ambulatory DMD patients. The consequence was immediate: demand collapsed. For 2025, the company projects revenue of $1.86 billion, essentially flat compared to 2024’s $1.9 billion—a stalling growth trajectory that would have expanded significantly absent these safety clouds.

Management is developing next-generation therapies with potential clinical readouts expected this year. These pipeline candidates could eventually provide growth catalysts. Yet crucially, one of those candidates also faced safety concerns tied to liver failure, which Sarepta abandoned. This troubling parallel does nothing to restore investor or patient confidence in the company’s therapeutic approach.

Elevidys remains marred by uncertainty, and Sarepta’s medium-term prospects look murky at best. The stock may not have found a bottom, making it prudent to remain on the sidelines.

The Investment Takeaway

Both Sarepta and Teladoc illustrate why fallen angels don’t always represent value. Sometimes stocks sink for legitimate reasons. The persistence of those challenges—safety concerns in Sarepta’s case, structural competitive losses for Teladoc—suggests that 2026 may bring further disappointment. Cautious investors should look elsewhere for opportunities, avoiding these names until concrete evidence of turnaround emerges.