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Imagine Owning Verb Technology Company (NASDAQ:VERB) And Taking A 95% Loss Square On The Chin

Simply Wall St
·3 min read

Some stocks are best avoided. It hits us in the gut when we see fellow investors suffer a loss. Spare a thought for those who held Verb Technology Company, Inc. (NASDAQ:VERB) for five whole years - as the share price tanked 95%. And it's not just long term holders hurting, because the stock is down 89% in the last year. More recently, the share price has dropped a further 40% in a month. But this could be related to poor market conditions -- stocks are down 29% in the same time.

While a drop like that is definitely a body blow, money isn't as important as health and happiness.

View our latest analysis for Verb Technology Company

Verb Technology Company isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

NasdaqCM:VERB Income Statement, March 19th 2020
NasdaqCM:VERB Income Statement, March 19th 2020

This free interactive report on Verb Technology Company's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We regret to report that Verb Technology Company shareholders are down 89% for the year. Unfortunately, that's worse than the broader market decline of 16%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 45% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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 5 warning signs for Verb Technology Company (2 don't sit too well with us) that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.