unprofitable companies

Applied Digital stock fell 19.5% in February as Nvidia exited its 7.7M share stake, amid investor skepticism over the unprofitable AI firm's expensive 26x P/S valuation and $2.6B debt.

Lemonade stock plunged 36% in February despite solid Q4 results showing 23% customer growth and 53% revenue increase, reflecting investor impatience with unprofitable AI companies.

Quantum computing stocks Rigetti and D-Wave trade at steep valuations despite minimal revenue and losses, betting heavily on long-term commercialization potential rather than current financial performance.