The last three months have been tough on Kingsoft Cloud Holdings Limited (NASDAQ:KC) shareholders, who have seen the share price decline a rather worrying 41%. But that doesn't change the fact that the returns over the last year have been respectable. Indeed the stock is up 57% over twelve months, compared to a market return of about 52%.
Kingsoft Cloud Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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 year Kingsoft Cloud Holdings saw its revenue grow by 66%. That's a head and shoulders above most loss-making companies. While the share price gain of 57% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at Kingsoft Cloud Holdings. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Kingsoft Cloud Holdings is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Kingsoft Cloud Holdings will earn in the future (free analyst consensus estimates)
A Different Perspective
Kingsoft Cloud Holdings shareholders have gained 57% over twelve months, which isn't far from the market return of 52%. Unfortunately the share price is down 41% over the last quarter. It may simply be that the share price got ahead of itself, although you might want to check for any weak results. It's always interesting to track share price performance over the longer term. But to understand Kingsoft Cloud Holdings better, we need to consider many other factors. Even so, be aware that Kingsoft Cloud Holdings is showing 1 warning sign in our investment analysis , you should know about...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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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