2 Unprofitable Stocks to Target This Week and 1 Facing Challenges

Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around. Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.

A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. That said, here are two unprofitable companies that could turn today’s losses into long-term gains and one best left off your radar.

One Stock to Sell:

Clover Health (CLOV)

Trailing 12-Month GAAP Operating Margin: -2.6%

Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health CLOV provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.

Why Does CLOV Fall Short?

• Annual sales declines of 18.1% for the past two years show its products and services struggled to connect with the market during this cycle
• Subscale operations are evident in its revenue base of $1.61 billion, meaning it has fewer distribution channels than its larger rivals
• Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

Clover Health’s stock price of $2.80 implies a valuation ratio of 17.4x forward P/E. Check out our free in-depth research report to learn more about why CLOV doesn’t pass our bar.

Two Stocks to Watch:

Fiverr (FVRR)

Trailing 12-Month GAAP Operating Margin: -3.9%

Based in Tel Aviv, Fiverr FVRR operates a fixed price global freelance marketplace for digital services.

Why Does FVRR Stand Out?

• Customer spending is rising as the company has focused on monetization over the last two years, leading to 20.5% annual growth in its average revenue per buyer
• Additional sales over the last three years increased its profitability as the 59.8% annual growth in its earnings per share outpaced its revenue
• Free cash flow margin increased by 13 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Fiverr is trading at $22.40 per share, or 9x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

DraftKings (DKNG)

Trailing 12-Month GAAP Operating Margin: -6.2%

Getting its start in daily fantasy sports, DraftKings DKNG is a digital sports entertainment and gaming company.

Why Do We Like DKNG?

• Rapid growth in monthly unique players demonstrates strong market adoption
• Expected revenue growth of 26.2% for the next year suggests its market share will rise
• Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 22.2% annually

At $34.45 per share, DraftKings trades at 24.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. 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-micro-cap company Kadant (+351% five-year return).

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.