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This AI stock surged 776% in 12 months, beating Nvidia and Palantir. But I refused to buy it.
On the surface, it looked like an obvious winner: rising profits, a strong balance sheet and an undervalued price. Deeper research revealed 3 red flags: negative free cash flow, past accounting violations and a weak competitive moat. Eight months after its peak, the stock had plunged 86%.
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