If You Had Bought Cardlytics (NASDAQ:CDLX) Stock A Year Ago, You Could Pocket A 118% Gain Today
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 business to buy shares in, you can make more than you can lose. For example, the Cardlytics, Inc. (NASDAQ:CDLX) share price had more than doubled in just one year - up 118%. And in the last month, the share price has gained 8.7%. Cardlytics hasn't been listed for long, so it's still not clear if it is a long term winner.
View our latest analysis for Cardlytics
Cardlytics 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 year Cardlytics saw its revenue grow by 19%. We respect that sort of growth, no doubt. The revenue growth is decent but the share price had an even better year, gaining 118%. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. So it makes a lot of sense to check out what analysts think Cardlytics will earn in the future (free profit forecasts).
A Different Perspective
It's nice to see that Cardlytics shareholders have gained 118% over the last year. That's better than the more recent three month gain of 14%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). It's always interesting to track share price performance over the longer term. But to understand Cardlytics better, we need to consider many other factors. For instance, we've identified 3 warning signs for Cardlytics that you should be aware of.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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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