From Yahoo Finance: 2025-04-01 14:30:00

In a recent list, we highlighted the “10 Best Debt-Free IT Stocks to Buy Under $10.” One company under the spotlight is Vimeo Inc. (NASDAQ:VMEO), which is compared to other top debt-free IT stocks. Debt accumulation by companies has various reasons, such as cost-effectiveness and the ability to fund expansion without giving up control.

Debt can also pose significant threats to a company’s operations, potentially leading to foreclosure if not managed properly. With harsh macroeconomic conditions and increasing bankruptcies, investing in financially stable companies becomes crucial. Ray Dalio highlighted a growing supply-demand imbalance in the U.S. debt market, emphasizing the need for fiscal adjustments.

Investing in debt-free, affordable stocks might be the right move during volatile times, especially considering the surge in corporate bankruptcies in the U.S. CNBC reported a rise in bankruptcies, attributing it to the increasing interest rates making it more expensive for companies to manage their debt. This trend may necessitate a shift towards stable companies with low or no debt.

Vimeo Inc. (NASDAQ:VMEO) stands out as an attractive option, ranking 6th in the list of best debt-free IT stocks under $10. With a focus on AI-led enhancements and growth investments, the company aims to achieve double-digit growth by the end of the year. Ending 2024 with $325 million in cash and no debt, VMEO presents a promising opportunity for investors looking for growth potential.

Read more: Is Vimeo Inc. (VMEO) the Best Debt-Free IT Stock to Buy Under $10?