Yahoo Finance Shareholders in 23andMe Holding (NASDAQ:ME) are in the red if they invested a year ago
Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of 23andMe Holding Co. (NASDAQ:ME) have suffered share price declines over the last year. To wit the share price is down 62% in that time. Because 23andMe Holding hasn't been listed for many years, the market is still learning about how the business performs. More recently, the share price has dropped a further 18% in a month. However, we note the price may have been impacted by the broader market, which is down 11% in the same time period.
Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.
See our latest analysis for 23andMe Holding
23andMe Holding isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
In the last year 23andMe Holding saw its revenue grow by 8.6%. That's not a very high growth rate considering it doesn't make profits. It's likely this muted growth has contributed to the share price decline of 62% in the last year. Like many holders, we really want to see better revenue growth in companies that lose money. When a stock falls hard like this, it can signal an over-reaction. Our preference is to wait for a fundamental improvements before buying, but now could be a good time for some research.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at 23andMe Holding's financial health with this free report on its balance sheet.
A Different Perspective
We doubt 23andMe Holding shareholders are happy with the loss of 62% over twelve months. That falls short of the market, which lost 22%. 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 1.4% rebound in the last three months. 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 23andMe Holding better, we need to consider many other factors. For instance, we've identified 4 warning signs for 23andMe Holding (1 makes us a bit uncomfortable) that you should be aware of.
We will like 23andMe Holding 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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