Blade Air Mobility, Inc. (NASDAQ:BLDE) shareholders should be happy to see the share price up 14% in the last month. But that doesn't change the fact that the returns over the last year have been disappointing. During that time the share price has sank like a stone, descending 61%. Some might say the recent bounce is to be expected after such a bad drop. You could argue that the sell-off was too severe.
Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.
Blade Air Mobility 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. 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 Blade Air Mobility saw its revenue grow by 156%. That's a strong result which is better than most other loss making companies. Meanwhile, the share price slid 61%. This could mean hype has come out of the stock because the bottom line is concerning investors. Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
This free interactive report on Blade Air Mobility'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 1.4% in the last year, Blade Air Mobility shareholders might be miffed that they lost 61%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 20% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for Blade Air Mobility that you should be aware of.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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.