When looking at growth stocks it is uncommon to be looking for growth stocks to sell. Companies that experience impressive revenue growth tend to excite investors based on the potential for significant returns that continue. This generally makes growth stocks a vital addition to a solid portfolio. They allow for the possibility of a substantial increase in their underlying stock price due to more and more investors looking to be a part of a company’s growth.
On the other hand, growth stocks also have their downfall, particularly the ones mentioned below. In that, a company may be experiencing impressive revenue growth from their products or services selling very well, but still need to be more profitable overall. These growth stocks to sell have seen consistent revenue growth but continue to see expanding net losses. That digs them deeper into unprofitability and gives investors hesitation towards investing in these companies for the long term.
Lucid Group (LCID)
Lucid Group (NASDAQ:LCID) is an automotive production company. They build luxury electric vehicles, batteries and powertrains. The company produces three Lucid Air models, the Grand Touring, Pure and Touring. And their Lucid Gravity model, a luxury electric SUV, is expected to roll out in 2024.
Since early September of 2022, Lucid Group’s share price has fallen by 59%. Partially due to interest rate increases and a challenging market at this time for luxury vehicles. On August 7, they released their second quarter earnings for 2023. Revenue increased by 55% compared to the second quarter of 2022. They reported a significant net loss increase that more than tripled from $220 million in Q2 2022 to $764 million in Q2 2023. The company has seen impressive revenue growth but with their net losses continuing to compound leaves investors unsure of their future.
They only delivered 1,404 vehicles for Q2 2023.
Affirm Holdings (AFRM)
Affirm Holdings (NASDAQ:AFRM) is a finance company specializing in payment processing. They offer a mobile app that allows customers in North America and internationally to make purchases through their platform, select payment installments that go up to 12 months and offer interest-free and interest-applied payment plans.
Affirm Holdings started trading publicly back in January of 2021. And over the last year, they saw a 5% drop in their overall share price. Back on August 25, the company released its earnings results for the fourth quarter of the fiscal year 2023. It stated an increase in overall revenue for the full year 2023 grew by 18% compared to the full year 2022. Within the same time period the company also announced their net loss expanded from $707 million to $985 million an increase of 39%. Similar to Lucid, AFRM has strong revenue growth, but they are struggling to become profitable.
Plug Power (PLUG)
Plug Power (NASDAQ:PLUG) provide hydrogen fuel cells for logistics application, electric vehicles and the power market. They offer products such as GenDrive, which are hydrogen fuel cell systems made for material handling equipment and GenSure, which uses fuel cells for grid support applications.
Over the past year, the company has seen its share price fall by approximately 68%. On August 9, they released their second quarter results for 2023. Plug Power stated an increase in total revenue of 72%, and their net loss has expanded by 36% to $236 million.
Like other companies on this list, Plug Power has seen significant growth in overall revenue recently but still is not profitable, and their margin keeps getting thinner each quarter.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publishing Guidelines.
