Investors know that what is bad news for the economy can often be good news for stocks. That’s usually the case when companies announce layoffs. But usually, does not mean always. And in a volatile market, it’s a good time to look at stocks to sell after layoffs.

Remember, a company will prioritize shareholder value over retaining employees. And “cutting the fat” is a way to boost earnings. However, sometimes, even a short-term boost to the bottom line isn’t enough. Some companies have a combination of acute or systemic problems affecting the business. That’s the case with the three companies in this article.

If you’re so inclined, this may be a time to take a short position in these companies. Otherwise, the best advice is to let the dust settle. In some cases, you can revisit these stocks at a better price. But for now, there are reasons why each of these companies fit into the category of stocks to sell after layoffs.

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Alphabet (GOOGL, GOOG)

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In February, Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) launched its long-awaited Gemini AI model. To say it could have gone better is an understatement. Many users quickly found that Gemini generated historically inaccurate images, such as a female Pope.

After offering a “mistakes were made” defense that fell short of an apology, Alphabet paused the image generation feature for a few weeks and promised to retrain the AI model. This process should take a few months. Count Elon Musk, one of the loudest critics, as a skeptic.

However, the larger issue from an investing standpoint is that this is an unforced error at a time when any slip-up is going to be treated harshly. Analysts don’t necessarily agree. However, it’s worth noting that GOOGL stock was near the top of analysts’ estimates before the recent sell-off. That may generate some buyers, but would the bounce be sustainable?

In the long run, Alphabet is likely to be fine, particularly after the ongoing layoffs the company has announced. Still, controversies like these have a way of hanging around, especially during an election year. Traders may have some fun here, but there will likely continue to be downward pressure on the stock.

Bumble (BMBL)

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Dating apps such as Bumble (NASDAQ:BMBL) have revolutionized the dating scene. But revolutions often lead to counterrevolutions, which may be taking place in the online dating world.

A recent study from Hinge shows that Gen-Z—a coveted demographic of an app like Bumble—is increasingly losing interest in dating apps or choosing to use them sparingly. The irony is that Gen-Z is the first truly digitally native generation, yet they are the ones citing a desire for authentic human connection.