1 Unprofitable Stock Worth Your Attention and 2 We Turn Down

Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth.

Finding the right unprofitable companies is difficult, which is why we started StockStory - to help you navigate the market. Keeping that in mind, here is one unprofitable company with the potential to become an industry leader and two that may never reach the Promised Land.

Two Stocks to Sell:

Blink Charging (BLNK)

Trailing 12-Month GAAP Operating Margin: -119%

One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.

Why Are We Wary of BLNK?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.9% annually over the last two years
2. Negative free cash flow raises questions about the return timeline for its investments
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $0.77 per share, Blink Charging trades at 0.7x forward price-to-sales. Read our free research report to see why you should think twice about including BLNK in your portfolio.

Applied Digital (APLD)

Trailing 12-Month GAAP Operating Margin: -32%

Pivoting from its origins in cryptocurrency mining to become a key player in the AI infrastructure boom, Applied Digital (NASDAQ:APLD) designs and operates specialized data centers that provide high-performance computing infrastructure for artificial intelligence and blockchain applications.

Why Is APLD Not Exciting?

1. Flat earnings per share over the last three years underperformed the sector average
2. Free cash flow margin shrank by 79.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Applied Digital is trading at $30.66 per share, or 60.7x forward EV-to-EBITDA. To fully understand why you should be careful with APLD, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

Rumble (RUM)

Trailing 12-Month GAAP Operating Margin: -109%

Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ:RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.

Why Should RUM Be on Your Watchlist?

1. Impressive 85.5% annual revenue growth over the last four years indicates it’s winning market share this cycle
2. Exciting sales outlook for the upcoming 12 months calls for 202% growth, an acceleration from its two-year trend

Rumble’s stock price of $6.61 implies a valuation ratio of 35.6x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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