Yahoo Finance Shareholders in MYT Netherlands Parent B.V (NYSE:MYTE) have lost 53%, as stock drops 9.4% this past week
The nature of investing is that you win some, and you lose some. Anyone who held MYT Netherlands Parent B.V. (NYSE:MYTE) over the last year knows what a loser feels like. The share price has slid 53% in that time. MYT Netherlands Parent B.V hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. The falls have accelerated recently, with the share price down 45% in the last three months.
After losing 9.4% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
View our latest analysis for MYT Netherlands Parent B.V
MYT Netherlands Parent B.V isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last year MYT Netherlands Parent B.V saw its revenue grow by 35%. We think that is pretty nice growth. Meanwhile, the share price tanked 53%, suggesting the market had much higher expectations. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. For us it's important to consider when you think a company will become profitable, if you're basing your valuation on revenue.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on MYT Netherlands Parent B.V'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 5.9% in the last year, MYT Netherlands Parent B.V shareholders might be miffed that they lost 53%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 45%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for MYT Netherlands Parent B.V that you should be aware of before investing here.
We will like MYT Netherlands Parent B.V 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.
