Strong week for 908 Devices (NASDAQ:MASS) shareholders doesn't alleviate pain of one-year loss
908 Devices Inc. (NASDAQ:MASS) shareholders will doubtless be very grateful to see the share price up 43% in the last month. But in truth the last year hasn't been good for the share price. In fact, the price has declined 32% in a year, falling short of the returns you could get by investing in an index fund.
The recent uptick of 16% could be a positive sign of things to come, so let's take a look at historical fundamentals.
Check out our latest analysis for 908 Devices
Because 908 Devices 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. 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 twelve months, 908 Devices increased its revenue by 59%. That's a strong result which is better than most other loss making companies. Given the revenue growth, the share price drop of 32% seems quite harsh. Our sympathies to shareholders who are now underwater. On the bright side, if this company is moving profits in the right direction, top-line growth like that could be an opportunity. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
We doubt 908 Devices shareholders are happy with the loss of 32% over twelve months. That falls short of the market, which lost 8.1%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 21% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand 908 Devices better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with 908 Devices .
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.
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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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