It is doubtless a positive to see that the Kuaishou Technology (HKG:1024) share price has gained some 32% in the last three months. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact the stock is down 42% in the last year, well below the market return.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
View our latest analysis for Kuaishou Technology
Because Kuaishou Technology made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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 twelve months, Kuaishou Technology increased its revenue by 34%. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 42%. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
SEHK:1024 Earnings and Revenue Growth July 18th 2022Kuaishou Technology is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Kuaishou Technology stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
We doubt Kuaishou Technology shareholders are happy with the loss of 42% 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. Putting aside the last twelve months, it's good to see the share price has rebounded by 32%, in the last ninety days. 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 Kuaishou Technology better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Kuaishou Technology .
We will like Kuaishou Technology 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 HK 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.