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Bit Digital, Inc. (NASDAQ:BTBT) shareholders might be concerned after seeing the share price drop 25% in the last month. But that doesn't change the fact that the returns over the last year have been spectacular. Indeed, the share price is up a whopping 825% in that time. Arguably, the recent fall is to be expected after such a strong rise. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).
Anyone who held for that rewarding ride would probably be keen to talk about it.
Given that Bit Digital only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
In the last year Bit Digital saw its revenue grow by 536%. That's a head and shoulders above most loss-making companies. But the share price seems headed to the moon, up 825% as previously highlighted. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. But if the share price does moderate a bit, there might be an opportunity for high growth investors.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
This free interactive report on Bit Digital's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Pleasingly, Bit Digital's total shareholder return last year was 825%. That gain actually surpasses the 42% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Bit Digital on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Bit Digital better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Bit Digital (including 2 which are significant) .
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.
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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