7 Worst Vertical Farming and Hydroponic Stocks to Buy

5. Agrify Corporation (NASDAQ:AGFY)

Short % of Float: 2.26%

Number of Hedge Fund Holders: N/A

Agrify Corporation (NASDAQ:AGFY) provides software and hardware solutions for the cannabis and hemp industries, offering vertical farming units, cultivation software, and LED grow lights. The company also provides engineers, consulting, and construction services along with alcohol, hydrocarbon, and solventless extraction equipment. Agrify plans to optimize indoor farming and extraction processes by using technology-driven innovations, serving both large-scale and independent operators.

Agrify Corporation (NASDAQ:AGFY) reported a revenue of $1.9 million and a gross profit of $0.2 million for the third quarter that ended September 30, 2024. However, primarily due to a $15 million change in the fair value of warrant liabilities, the company recorded a net loss of $18.6 million. It secured $20 million in convertible note financing to solidify its financial position, with an initial $10 million draw from Green Thumb Industries in early November.

Moreover, Agrify Corporation (NASDAQ:AGFY) has announced leadership transitions, with Ben Kovler taking on the Chairman and Interim CEO positions. Its recent non-binding letter of intent to acquire the Señorita brand of hemp-derived THC beverages demonstrates its shift in focus toward consumer-oriented products. This move reflects the company’s effort to diversify its business, yet the cannabis and hemp sectors remain highly competitive, with regulatory and economic hurdles impacting profitability.

However, the company faces challenging market conditions, with a year-to-date share price reduction of over 45%. Agrify Corporation (NASDAQ:AGFY) ranks among the worst agriculture stocks due to the ongoing financial challenges and shifting business strategies, as uncertainties around profitability and execution risks remain a concern for investors.