Yahoo Finance Investors in PLAYSTUDIOS (NASDAQ:MYPS) have unfortunately lost 14% over the last year
It's understandable if you feel frustrated when a stock you own sees a lower share price. But sometimes a share price fall can have more to do with market conditions than the performance of the specific business. The PLAYSTUDIOS, Inc. (NASDAQ:MYPS) share price is down 14% in the last year. But that actually beats the market decline of 24%. PLAYSTUDIOS may have better days ahead, of course; we've only looked at a one year period. Even worse, it's down 10% in about a month, which isn't fun at all. However, we note the price may have been impacted by the broader market, which is down 4.7% in the same time period.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
View our latest analysis for PLAYSTUDIOS
PLAYSTUDIOS isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last twelve months, PLAYSTUDIOS increased its revenue by 1.2%. That's not a very high growth rate considering it doesn't make profits. While the stock is down 14% over the last twelve months, that's not bad in this market. So it looks like shareholders aren't caving in to fear at this time. This can be a sign that they are confident profits will flow. Are you?.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think PLAYSTUDIOS will earn in the future (free profit forecasts).
A Different Perspective
It's not great that PLAYSTUDIOS shares failed to make money for shareholders in the last year, but the silver lining is that the loss of 14%, wasn't as bad as the broader market loss of about 24%. On the plus side, the share price has bounced a full 2.3% in the last three months. The recent uptick could be an early suggestion that the prior falls were too extreme; but we'll need to see how the business progresses. It's always interesting to track share price performance over the longer term. But to understand PLAYSTUDIOS better, we need to consider many other factors. For example, we've discovered 1 warning sign for PLAYSTUDIOS that you should be aware of before investing here.
PLAYSTUDIOS is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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