3 Unprofitable Stocks Walking a Fine Line

July 11, 2025 at 00:36 AM EDT

JAMF Cover Image

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.

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 three unprofitable companiesto avoid and some better opportunities instead.

Jamf (JAMF)

Trailing 12-Month GAAP Operating Margin: -8.1%

Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ: JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.

Why Does JAMF Give Us Pause?

Annual revenue growth of 17.7% over the last three years was below our standards for the software sector
Offerings struggled to generate meaningful interest as its average billings growth of 8.9% over the last year did not impress
Poor expense management has led to operating margin losses

At $8.70 per share, Jamf trades at 1.7x forward price-to-sales. To fully understand why you should be careful with JAMF, check out our full research report (it’s free).

AMC Networks (AMCX)

Trailing 12-Month GAAP Operating Margin: -3.6%

Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ: AMCX) is a broadcaster producing a diverse range of television shows and movies.

Why Should You Sell AMCX?

Annual sales declines of 4.6% for the past five years show its products and services struggled to connect with the market
Sales were less profitable over the last five years as its earnings per share fell by 17.7% annually, worse than its revenue declines
Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

AMC Networks is trading at $6.04 per share, or 2x forward P/E. If you’re considering AMCX for your portfolio, see our FREE research report to learn more.

Rocket Lab (RKLB)

Trailing 12-Month GAAP Operating Margin: -44.2%

Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ: RKLB) offers rockets designed for launching small satellites.

Why Are We Hesitant About RKLB?

Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
Negative free cash flow raises questions about the return timeline for its investments
Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Rocket Lab’s stock price of $39.16 implies a valuation ratio of 31.2x forward price-to-sales. Check out our free in-depth research report to learn more about why RKLB doesn’t pass our bar.

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3 Unprofitable Stocks Walking a Fine Line

Jamf (JAMF)

AMC Networks (AMCX)

Rocket Lab (RKLB)

High-Quality Stocks for All Market Conditions

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