Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
Just because a business has cash doesn’t mean it’s a good investment. Luckily, StockStory is here to help you separate the winners from the losers. Keeping that in mind, here is one company with a net cash position that can continue growing sustainably and two best left off your watchlist.
Two Stocks to Sell:
Amplitude (AMPL)
Net Cash Position: $203.2 million (13.1% of Market Cap)
Born from the realization that companies were flying blind when it came to understanding user behavior in their digital products, Amplitude (NASDAQ:AMPL) provides a digital analytics platform that helps businesses understand how people use their digital products to improve user experiences and drive revenue growth.
Why Does AMPL Fall Short?
- Products, pricing, or go-to-market strategy may need some adjustments as its 9.9% average billings growth over the last year was weak
- Struggled to drive increased usage of its software, demonstrated by its subpar 100% net revenue retention rate
- Persistent operating margin losses suggest the business manages its expenses poorly
Amplitude is trading at $11.44 per share, or 4.3x forward price-to-sales. If you’re considering AMPL for your portfolio, see our FREE research report to learn more.
Rivian (RIVN)
Net Cash Position: $1.17 billion (7.8% of Market Cap)
The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.
Why Does RIVN Give Us Pause?
- Negative 49.3% gross margin means it loses money on every sale and must pivot or scale quickly to survive
- Cash-burning history makes us doubt the long-term viability of its business model
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $12.44 per share, Rivian trades at 2.5x forward price-to-sales. Read our free research report to see why you should think twice about including RIVN in your portfolio.
One Stock to Watch:
SmartRent (SMRT)
Net Cash Position: $105 million (37.2% of Market Cap)
Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
Why Do We Like SMRT?
- ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Market share is on track to rise over the next 12 months as its 22.2% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings per share grew by 27.6% annually over the last two years and trumped its peers
SmartRent’s stock price of $1.55 implies a valuation ratio of 1.5x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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