What happened Vuzix (NASDAQ: VUZI) took a tumble on Tuesday after the company reported disappointing earnings results. Shares of the augmented reality glasses company were down as much as 18.4% on the news. As of 12:14 p.m. EDT, the stock is down 13.3% for the day. So what Vuzix announced its second-quarter 2021 earnings after the close on Monday, Aug. 9. Earnings per share came in at a loss of $0.14, which was worse than the $0.10 loss analysts were expecting. This earnings miss is likely a big reason Vuzix stock was down on Tuesday. Image source: Getty Images. The rest of the report did not look great, either. Revenue was down 4% year over year to $2.9 million in the quarter, while gross margin decreased to 20%. Sales of Vuzix's smart glasses actually rose 21% in the quarter, but it lost almost all of its engineering services revenue, which caused revenue growth to turn negative in the period. Now what At a market cap of around $733 million, investors are betting on huge growth from Vuzix over the next few years. The stock trades at a trailing price-to-sales ratio (P/S) above 50, making it one of the most expensive stocks on the market. If its revenue continues to stagnate with decreasing gross margin, shareholders risk losing all of their investment in this stock, and unless you think a turnaround is in store, it is probably smart to stay far away from this company at the moment. 10 stocks we like better than VuzixWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Vuzix wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source