Yahoo Finance BARK (NYSE:BARK shareholders incur further losses as stock declines 12% this week, taking one-year losses to 67%
Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of BARK, Inc. (NYSE:BARK) have suffered share price declines over the last year. The share price is down a hefty 67% in that time. Because BARK hasn't been listed for many years, the market is still learning about how the business performs. Shareholders have had an even rougher run lately, with the share price down 49% in the last 90 days.
If the past week is anything to go by, investor sentiment for BARK isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
Check out our latest analysis for BARK
BARK 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year BARK saw its revenue grow by 61%. That's a strong result which is better than most other loss making companies. In contrast the share price is down 67% over twelve months. Yes, the market can be a fickle mistress. This could mean hype has come out of the stock because the bottom line is concerning investors. We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on BARK's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Given that the market gained 18% in the last year, BARK shareholders might be miffed that they lost 67%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 49% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand BARK better, we need to consider many other factors. Even so, be aware that BARK is showing 2 warning signs in our investment analysis , you should know about...
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.
