3 AI Stocks to Sell in June Before They Crash and Burn

Investors are being advised to sell shares in three leading AI-driven companies based on the shaky nature of their financials, as concerns mount over a potential bubble in the sector and overvaluation of some stocks. The three under-performing firms are AI-driven insurer Lemonade, Buzzfeed, known for its content produced using AI, and Veritone, which specialises in AI-driven media and advertising solutions. Despite strong annual growth in its insurance business last year, Lemonade posted alarmingly weak financial metrics, and is expected to remain in the red over the coming years. Similarly, Buzzfeed has been burning through its cash reserves, leading to a cash balance decline of more than 45%, and a report that suggested bankruptcy could be imminent. Veritone, which has yet to translate its popular narrative in AI into financial success, has had diminishing organic revenue growth over recent years, with up to 30% of its sales dependent upon Amazon. The company is now seeking to cut costs by introducing belt-tightening measures, potentially hindering growth, with forward revenue growth estimates standing at only 10.3%.