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High Price/Sales Ratios Signal Major Investment Risks

2/18/2025

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Story summary
  • Investing in stocks with a price/sales ratio above 100 carries significant risk.
  • Notable examples include Strategy Inc. (139), IonQ (210), and Revolution Medicines (8,000).
  • Trump Media's ratio exceeds 1,600, while AST SpaceMobile surpasses 1,800.
  • Historical data indicates that 60 of 84 warned stocks experienced an average decline of 22.2%.