‘Story’ stocks are smoking hot in 2025. This is how it could end badly for investors.

Market Extra

Markets can stay frothy for longer than many might expect. But when the crash comes, it could be painful.

Last Updated: July 13, 2025 at 8:38 p.m. ET
First Published: July 12, 2025 at 7:30 a.m. ET

Unprofitable “story” stocks are smoking hot this year. But it could end badly for investors. Photo: MarketWatch photo illustration/iStockphoto

In the U.S. stock market in 2025, a company’s ability to reliably generate profits has been taking a back seat to its ability to tell a good story.

Of the 10 stocks in the Russell 3000 index RUA with the biggest year-to-date gains, many of the companies have one ominous thing in common: a spotty or nonexistent record of generating profit.