Is Phun is a high risk stock

Phunware (PHUN) is a high-risk stock, and here are the key points to support this assessment:

1. High Volatility: Phunware has a beta of 2.57, indicating that its share price is 158% more volatile than the S&P 500. This high volatility is a characteristic of a high-risk stock.

2. Unstable Financial Performance: Phunware has experienced a significant decline in revenue, with a revenue growth rate of -21.93%, and a net loss of $2.6 million for the quarter. These financial indicators suggest instability and higher risk.

3. Stock Price Fluctuations: The stock has experienced significant price fluctuations, with a 52-week low of $3.09 and a closing price of $6.77 as of October 18, 2024. These wide price swings are typical of high-risk stocks.

4. Market Challenges: Phunware has faced significant headwinds, reflected in its stock performance, amid challenges in the technology sector. This adds to the risk associated with the stock.

5. Financial Leverage: The company has a high debt-to-equity ratio of 2.57, which increases the risk of default if the company's financial performance does not improve.

6. Lack of Positive Earnings: Phunware has a negative earnings per share and a price-to-earnings ratio of -1.51, which typically indicates a lack of positive earnings and higher risk.

7. Risk Factors: There are 74 identified risk factors associated with Phunware, with the majority falling under the Finance & Corporate category. These risk factors contribute to the overall high-risk profile of the stock.

In conclusion, Phunware's high volatility, unstable financial performance, stock price fluctuations, market challenges, financial leverage, lack of positive earnings, and significant risk factors all contribute to it being a high-risk stock. Investors should be prepared for the possibility of significant losses and have a high-risk tolerance.