Investors in Tuya (NYSE:TUYA) from a year ago are still down 47%, even after 17% gain this past week
Tuya Inc. (NYSE:TUYA) shareholders will doubtless be very grateful to see the share price up 217% in the last quarter. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 47% in the last year, significantly under-performing the market.
On a more encouraging note the company has added US$226m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.
See our latest analysis for Tuya
Tuya wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Tuya's revenue didn't grow at all in the last year. In fact, it fell 18%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 47% in that time. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on Tuya's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Tuya shareholders are down 47% for the year, even worse than the market loss of 11%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. Putting aside the last twelve months, it's good to see the share price has rebounded by 217%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Tuya better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Tuya you should know about.
We will like Tuya better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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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