Reflecting on Stealth BioTherapeutics' (NASDAQ:MITO) Share Price Returns Over The Last Year
It's not a secret that every investor will make bad investments, from time to time. But it should be a priority to avoid stomach churning catastrophes, wherever possible. We wouldn't blame Stealth BioTherapeutics Corp (NASDAQ:MITO) shareholders if they were still in shock after the stock dropped like a lead balloon, down 84% in just one year. While some investors are willing to stomach this sort of loss, they are usually professionals who spread their bets thinly. Stealth BioTherapeutics hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. The falls have accelerated recently, with the share price down 17% in the last three months. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
View our latest analysis for Stealth BioTherapeutics
Because Stealth BioTherapeutics made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong 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.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
If you are thinking of buying or selling Stealth BioTherapeutics stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Given that the market gained 22% in the last year, Stealth BioTherapeutics shareholders might be miffed that they lost 84%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 17%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand Stealth BioTherapeutics better, we need to consider many other factors. Case in point: We've spotted 5 warning signs for Stealth BioTherapeutics you should be aware of, and 1 of them is a bit unpleasant.
But note: Stealth BioTherapeutics 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.
