U.S. Markets closed

How Much Did Luokung Technology's(NASDAQ:LKCO) Shareholders Earn From Share Price Movements Over The Last Year?

Simply Wall St
·3 min read

It is a pleasure to report that the Luokung Technology Corp. (NASDAQ:LKCO) is up 39% in the last quarter. But that isn't much consolation to those who have suffered through the declines of the last year. Like a receding glacier in a warming world, the share price has melted 57% in that period. So the bounce should be viewed in that context. Arguably, the fall was overdone.

View our latest analysis for Luokung Technology

Given that Luokung Technology didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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 the last year Luokung Technology saw its revenue grow by 43%. We think that is pretty nice growth. Unfortunately it seems investors wanted more, because the share price is down 57% in that time. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

While Luokung Technology shareholders are down 57% for the year, the market itself is up 24%. 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 39%, 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 Luokung Technology better, we need to consider many other factors. Take risks, for example - Luokung Technology has 4 warning signs (and 2 which shouldn't be ignored) we think you should know about.

We will like Luokung Technology better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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 (at) simplywallst.com.