Investors believe the company will underperform due to its shrinking revenue, justifying its low P/S ratio. If recent revenue trends persist, the share price is unlikely to see significant movement.
The company's underperformance in revenue growth could lead to a further drop in P/S ratio. Current investor sentiment and future expectations are mirrored in the P/S ratio. The potential for revenue improvement doesn't justify a higher P/S ratio, and unless medium-term conditions improve, they will continue to hinder the share price.
Red Phase INC. Stock Forum
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