Yahoo Finance The one-year earnings decline has likely contributed toSharecare's (NASDAQ:SHCR) shareholders losses of 57% over that period
Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that Sharecare, Inc. (NASDAQ:SHCR) stock has had a really bad year. The share price is down a hefty 57% in that time. We wouldn't rush to judgement on Sharecare because we don't have a long term history to look at. Furthermore, it's down 39% in about a quarter. That's not much fun for holders.
If the past week is anything to go by, investor sentiment for Sharecare isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
View our latest analysis for Sharecare
Given that Sharecare didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Sharecare saw its revenue grow by 15%. We think that is pretty nice growth. Unfortunately it seems investors wanted more, because the share price is down 57% in that time. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
This free interactive report on Sharecare's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
While Sharecare shareholders are down 57% for the year, the market itself is up 21%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 39% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Sharecare , and understanding them should be part of your investment process.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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.
