Importance of earnings....No doubt we would all rather invest in a company that is profitable or has a near term path to profitability, it validates their business model. If cleantech stocks showed rev growth and profits in 2021, would they have been hit with the correction in share prices? Stock prices do eventually follow earnings. That's why the sentiment sucks for a lot of the cleantech players. They disappointed, including XBC who has been put in the penalty box while investors wait to see further traction towards profitable rev growth. Some of us are looking forward to Q4 to see if rev and positive EBITDA will meet guidance.
A lot of the cleantech names that were to show rev growth in 2021 have not, and this has been compounded by heavy losses. Some of the losses almost equaled their revenues.
One needs to discriminate which clean tech players they may want to keep or add to their portfolio. Those who have revenue growth and a path to near term profitablity will do much better than others. Indiscriminant selling in the cleantech space can lead to undervalued shares. Someone asked if XBC was a value or growth stock now, at this price could it be both?
Over the long term, earnings do matter (Buffet and many successful investors can explain the importance of earnings), you're kidding yourself if you think otherwise.
https://mastersinvest.com/newblog/2018/3/28/stock-prices-follow-earnings