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Introducing AGM Group Holdings (NASDAQ:AGMH), The Stock That Dropped 15% In The Last Year

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Simply Wall St
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The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. For example, the AGM Group Holdings Inc. (NASDAQ:AGMH) share price is down 15% in the last year. That contrasts poorly with the market return of 12%. Because AGM Group Holdings hasn't been listed for many years, the market is still learning about how the business performs. There was little comfort for shareholders in the last week as the price declined a further 1.2%.

View our latest analysis for AGM Group Holdings

Because AGM Group Holdings is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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.

In just one year AGM Group Holdings saw its revenue fall by 90%. That looks like a train-wreck result to investors far and wide. Meanwhile, the share price dropped by 15%. It's always work digging deeper, but we'd probably need to see a strong balance sheet and bottom line improvements to get interested in this one.

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

NasdaqCM:AGMH Income Statement, November 6th 2019
NasdaqCM:AGMH Income Statement, November 6th 2019

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of AGM Group Holdings's earnings, revenue and cash flow.

A Different Perspective

Given that the market gained 12% in the last year, AGM Group Holdings shareholders might be miffed that they lost 15%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. Putting aside the last twelve months, it's good to see the share price has rebounded by 29%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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.

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. Thank you for reading.