Investors in Kaltura (NASDAQ:KLTR) from a year ago are still down 79%, even after 15% gain this past week
Kaltura, Inc. (NASDAQ:KLTR) shareholders will doubtless be very grateful to see the share price up 50% in the last quarter. But that is meagre solace when you consider how the price has plummeted over the last year. To wit, the stock has dropped 79% over the last year. So it's not that amazing to see a bit of a bounce. The bigger issue is whether the company can sustain the momentum in the long term.
While the stock has risen 15% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
See our latest analysis for Kaltura
Kaltura 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last twelve months, Kaltura increased its revenue by 28%. That's definitely a respectable growth rate. However, it seems like the market wanted more, since the share price is down 79%. It could be that the losses are too much for investors to handle without losing their nerve. It seems that the market has concerns about the future, because that share price action does not seem to reflect the revenue growth at all.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
If you are thinking of buying or selling Kaltura stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We doubt Kaltura shareholders are happy with the loss of 79% over twelve months. That falls short of the market, which lost 14%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 50%, 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). It's always interesting to track share price performance over the longer term. But to understand Kaltura better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Kaltura .
Of course Kaltura may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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