BigCommerce Holdings, Inc. (NASDAQ:BIGC) shareholders will doubtless be very grateful to see the share price up 47% in the last quarter. 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 24% in the last year, well below the market return.
BigCommerce Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. 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 twelve months, BigCommerce Holdings increased its revenue by 39%. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 24%. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
BigCommerce Holdings is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
While BigCommerce Holdings shareholders are down 24% for the year, the market itself is up 36%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. It's great to see a nice little 47% 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 BigCommerce Holdings better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for BigCommerce Holdings you should know about.
We will like BigCommerce 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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