The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. For example, the Blue Apron Holdings, Inc. (NYSE:APRN) share price has soared 100% in the last year. Most would be very happy with that, especially in just one year! And in the last week the share price has popped 29%. In contrast, the longer term returns are negative, since the share price is 87% lower than it was three years ago.
Given that Blue Apron Holdings 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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 year Blue Apron Holdings saw its revenue shrink by 32%. We're a little surprised to see the share price pop 100% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
If you are thinking of buying or selling Blue Apron Holdings stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's nice to see that Blue Apron Holdings shareholders have gained 100% (in total) over the last year. What is absolutely clear is that is far preferable to the dismal 50% average annual loss suffered over the last three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Blue Apron Holdings , and understanding them should be part of your investment process.
We will like Blue Apron Holdings 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.
This article by Simply Wall St is general in nature. 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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