Yahoo Finance Full Truck Alliance (NYSE:YMM) adds CN¥621m to market cap in the past 7 days, though investors from a year ago are still down 46%
It is doubtless a positive to see that the Full Truck Alliance Co. Ltd. (NYSE:YMM) share price has gained some 53% in the last three months. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 46% in the last year, significantly under-performing the market.
While the stock has risen 6.7% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
See our latest analysis for Full Truck Alliance
Given that Full Truck Alliance 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 twelve months, Full Truck Alliance increased its revenue by 74%. That's well above most other pre-profit companies. Given the revenue growth, the share price drop of 46% seems quite harsh. Our sympathies to shareholders who are now underwater. On the bright side, if this company is moving profits in the right direction, top-line growth like that could be an opportunity. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
Full Truck Alliance shareholders are down 46% for the year, even worse than the market loss of 16%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's great to see a nice little 53% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand Full Truck Alliance better, we need to consider many other factors. Take risks, for example - Full Truck Alliance has 2 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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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