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If You Had Bought LiveRamp Holdings (NYSE:RAMP) Shares Five Years Ago You'd Have Earned142% Returns

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When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term LiveRamp Holdings, Inc. (NYSE:RAMP) shareholders would be well aware of this, since the stock is up 142% in five years. In more good news, the share price has risen 0.02% in thirty days. But this could be related to good market conditions -- stocks in its market are up 5.9% in the last month.

Check out our latest analysis for LiveRamp Holdings

LiveRamp 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last half decade LiveRamp Holdings' revenue has actually been trending down at about 26% per year. Given that scenario, we wouldn't have expected the share price to rise 19% per year, but that's what it did. It just goes to show tht the market is forward looking, and it's not always easy to predict the future based on past trends. Still, this situation makes us a little wary of the stock.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

LiveRamp 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

LiveRamp Holdings' TSR for the year was broadly in line with the market average, at 22%. Most would be happy with a gain, and it helps that the year's return is actually better than the average return over five years, which was 19%. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. It's always interesting to track share price performance over the longer term. But to understand LiveRamp Holdings better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for LiveRamp Holdings you should be aware of.

But note: LiveRamp Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.