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Opinion
John Authers

How the Market Is Severely Punishing Growth Traps

The great expectations laid on companies at the outset of the pandemic have turned into pitiless correction over any weakness.

Markets aren’t in the mood for catch-and-release.

Markets aren’t in the mood for catch-and-release.

Photographer: Harold M. Lambert/Archive Photos/Getty

Corrected

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Stock-pickers are used to the concept of “value traps.” Many a stock that looks cheap turns out to be cheap for good reason. Fewer column inches have been devoted to “growth traps” — companies whose growth entices you in, only to disappoint. But that is changing in the month of May