Unprofitable Stocks Are Soaring in 2025 – Should You Join the Rally?

YOLO-trading is back, as 2025 has so far offered twists and turns that usually span an entire market cycle, all in just a few months. Since the market bottomed on April 8, stocks with no earnings have been leading the charge. Of the 14 Russell 3000 (IWV) companies that more than tripled in that window, 10 are unprofitable. On average, these 858 no-earnings names have gained 36%, outpacing profitable peers. Names like Avis Budget (CAR), Aeva Technologies (AEVA), and Carvana Co (CVNA) are catching fire, echoing the 2021 meme-stock playbook.

Market Flows Are Reshaping

It’s not just about speculative energy. At platforms like Interactive Brokers, high-volume trading names include Cyngn (CYN), a small-cap self-driving vehicle stock with under $5 million in revenue. Its shares are up nearly 230% since April 7, even though they are still down almost 90% year-to-date. Despite its impressive rise, no new analyst rating was issued. Moreover, its beta of 4.69 makes the stock highly speculative, even in a YOLO-trading environment.

Some retail investors are rotating into these names out of FOMO, hoping for short-term upside. Others are seeing opportunity in the recovery of last year’s biggest laggards. Either way, the sudden momentum in unprofitable stocks has reshaped market flows, taking attention away from traditional large caps like Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA).

TipRanks data can help filter noise for retail investors. Among the rallying unprofitable names, few show improving analyst sentiment or Smart Scores above 7. However, CVNA has shifted from a “Hold” to a “Moderate Buy” in recent weeks, earning a Smart Score of 9. This makes it helpful to distinguish between momentum trades and recovery stories with long-term upside potential. Another beneficial stock is AEVA, which also scores a 9 Smart Score and a Strong Buy analyst consensus. However, it also carries a high risk due to negative margins and limited sales visibility.

The Retail Investors’ Rally

Retail traders have been instrumental in fueling 2025’s market rally, with a record $155 billion poured into U.S. stocks and ETFs this year, according to VandaTrack, surpassing even the 2021 meme-stock frenzy. Their unwavering commitment to dip-buying, even through volatility triggered by President Trump’s tariff blitz, has delivered standout gains. A Bank of America model shows that simply buying the Nasdaq 100 after a down session would have returned 31% year-to-date, compared to 7.8% for a standard long position in the index.

Analysts at BofA and Visdom Investment Group note that this “buy-the-dip belief” has become deeply ingrained, with some metrics pointing to behavior even more aggressive than during the late-90s tech bubble. Still, professionals are more cautious, citing concerns over fiscal policy and volatility. As Rob Arnott of Research Affiliates puts it, “Dip-buying works brilliantly until it doesn’t.”

Last Words of Advice

TipRanks’ Smart Portfolio Tracker also helps clarify whether these bets fit your strategy. For YOLO-style traders, timing is key. For long-term investors, examining future revenue projections and insider confidence can help assess whether a turnaround is underway or if it’s merely hype.

Meanwhile, those who prefer quality may want to wait out the froth. The S&P 500 (SPY) and Nasdaq recently hit new records, but large-cap investing volume has slowed as cash rotates to small and speculative names. For now, the market rewards those who take risks. That can work, until it doesn’t. Whether chasing breakouts or riding momentum, aligning each trade with data-backed signals remains your best edge.

Using TipRanks’ comparison tool, we’ve assembled and compared the small and large-cap tickers appearing in the piece. This helps investors gain a proper perspective on each stock’s performance and the industry as a whole.