Should You Buy Stocks with Negative Earnings?

In the past, some companies with negative earnings, which later went positive, have gone on to be darlings of Wall Street.

Amazon (AMZN - Free Report) is one of the best performing S&P 500 stocks of the last 30 years but it started off its first few years with negative earnings.

Tesla (TSLA - Free Report) only went earnings positive last year, in 2020.

Still in the Negative in 2021

Some companies that currently have negative earnings have been the hottest on Wall Street.

1.       Twilio (TWLO - Free Report) is up 229% over the last year to new 5-year highs. But it’s had negative earnings every year since it’s 2016 IPO.

2.       Roku, Inc. (ROKU - Free Report) has also been hot, gaining 259% in the last year. In 2020, it was expected to lose $0.78 and analysts expect it to lose $0.50 again in 2021.

3.       Uber Technologies (UBER - Free Report) has a plan to get earnings positive. Analysts expect it to happen by 2023. Will it?