3 Cash-Burning Stocks in the Doghouse

EdenBusiness2025-07-014067

Rapid spending isn’t always a sign of progress. Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable.

Negative cash flow can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here are three cash-burning companies to avoid and some better opportunities instead.

C3.ai (AI)

Trailing 12-Month Free Cash Flow Margin: -11.4%

Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.

Why Do We Think Twice About AI?

  1. Sales trends were unexciting over the last three years as its 15.5% annual growth was below the typical software company

  2. Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue

  3. Suboptimal cost structure is highlighted by its history of operating margin losses

C3.ai’s stock price of $24.60 implies a valuation ratio of 7.1x forward price-to-sales. Check out our free in-depth research report to learn more about why AI doesn’t pass our bar.

3D Systems (DDD)

Trailing 12-Month Free Cash Flow Margin: -15.9%

Founded by the inventor of stereolithography, 3D Systems (NYSE:DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.

Why Is DDD Risky?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.9% annually over the last five years

  2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

3D Systems is trading at $1.53 per share, or 0.5x forward price-to-sales. If you’re considering DDD for your portfolio, see our FREE research report to learn more.

Sphere Entertainment (SPHR)

Trailing 12-Month Free Cash Flow Margin: -5.3%

Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE:SPHR) hosts live entertainment events and distributes content across various media platforms.

Why Do We Think SPHR Will Underperform?

  1. Sales trends were unexciting over the last five years as its 2.4% annual growth was below the typical consumer discretionary company

  2. Earnings per share fell by 7.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

  3. Cash burn makes us question whether it can achieve sustainable long-term growth

Story Continues

At $41.80 per share, Sphere Entertainment trades at 8.3x forward EV-to-EBITDA. To fully understand why you should be careful with SPHR, check out our full research report (it’s free).

Stocks We Like More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

Post a message
Tate

Three cash-burning stocks languishing in disgrace, casting a shadow over investor confidence.

2025-07-02 13:42:57 reply
Kaizen

3 Stocks Currently Ignored by Investors Despite Nominal Potential: A Cash-Burning Disappointment in the Doghouse of Investment Opportunities.

2025-07-04 01:57:48 reply
Micah

These 3 Cash-Burning Stocks sit uncomfortably in the Doghouse, with investors seeking to avoid their dwindling returns and looming debts like a night watch' em durn rope.

2025-07-04 01:57:57 reply
Jamari

Three Cash-Burning Stocks in the Doghouse are currently under scrutiny for their poor financial performance, weak business models that may have serious implications on longevity and sustainability.

2025-07-06 11:14:15 reply
Diora

With three stocks that seem to have incinerated cash like a dog returning home from the vet, investors must tread carefully before diving in.

2025-07-11 20:58:22 reply
Castor

Discover the three cash-burning stocks currently in hot water for investors, leaving many portfolio doghouse dwellers fretting over their prospects.

2025-07-15 09:15:10 reply
Jessamine

The three cash-burning stocks that have found themselves in hot water with investors, making a paradoxical yet urgent case for prudence amidst the unyielding competition of dog trading on these markets.

2025-07-22 02:32:28 reply
Marshall

With the clock ticking down on three pocket-burners that have put FinTech in a hot seat, investors are cautiously backing away from these cash consumption stocks while wagging fingers signaling caution for Doghouse moments to come.

2025-07-22 02:32:42 reply

您暂未设置收款码

请在主题配置——文章设置里上传