Strong week for AEye (NASDAQ:LIDR) shareholders doesn't alleviate pain of one-year loss
AEye, Inc. (NASDAQ:LIDR) shareholders will doubtless be very grateful to see the share price up 116% in the last month. But that hardly compensates for the shocking decline over the last twelve months. Indeed, the share price is down a whopping 83% in the last year. So the rise may not be much consolation. The real question is whether the company can turn around its fortunes. We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
On a more encouraging note the company has added US$33m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.
See our latest analysis for AEye
Because AEye 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
AEye's revenue didn't grow at all in the last year. In fact, it fell 15%. That's not what investors generally want to see. The share price fall of 83% in a year tells the story. That's a stern reminder that profitless companies need to grow the top line, at the very least. Of course, extreme share price falls can be an opportunity for those who are willing to really dig deeper to understand a high risk company like this.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on AEye's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Given that the market gained 12% in the last year, AEye shareholders might be miffed that they lost 83%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Putting aside the last twelve months, it's good to see the share price has rebounded by 115%, 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 AEye better, we need to consider many other factors. Case in point: We've spotted 6 warning signs for AEye you should be aware of, and 3 of them are a bit unpleasant.
Of course AEye 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 American 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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