Why do analysts recommend stocks that have are gaining revenue but losing earnings?


Relative noob to investing and valuation here. I notice a lot of professionals (and people on here) really high on companies, especially newer companies, that have rising revenue but falling earnings.

Why are people favoring these companies? Isn’t this a bad sign? SNOW would be a company that comes to mind.

I’m a relative simpleton when it comes to this stuff, so please help educate me.


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