2 Struggling Stocks Trading Below Their IPO Prices That Investors Should Tread Cautiously
Growth companies that have failed to deliver strong results over the last twelve months have taken a beating in the current bear market as investors want more than just promises of future growth. Two businesses that are struggling and haven't impressed investors this year are GoodRx Holdings (NASDAQ: GDRX) and Beyond Meat (NASDAQ: BYND). As a result, they are now trading well below the prices they first went public, and long-term investors should tread carefully with these stocks.
GoodRx Holdings, a company that provides customers with coupons on prescription medication, went public in September 2020. It, unfortunately, didn't take long for investors to turn bearish on the stock as Amazon would announce the launch of Amazon Pharmacy just a few months later, signifying more of a presence in healthcare and potentially going head to head with GoodRx. Amazon, a low-cost option for consumers, had acquired online pharmacy PillPack a few years earlier.
Although GoodRx has generated sales growth, and the Amazon threat hasn't derailed its business just yet, the company's mounting losses have given investors another reason to be skeptical about its future. The bottom line has been in the red in three of the past four quarters, with net losses totaling $47.1 million during the trailing 12 months on sales of $803.5 million.
Source Fool.com
