Yahoo Finance BigCommerce Holdings (NASDAQ:BIGC) investors are sitting on a loss of 61% if they invested a year ago
The nature of investing is that you win some, and you lose some. And unfortunately for BigCommerce Holdings, Inc. (NASDAQ:BIGC) shareholders, the stock is a lot lower today than it was a year ago. To wit the share price is down 61% in that time. BigCommerce Holdings may have better days ahead, of course; we've only looked at a one year period. Even worse, it's down 10% in about a month, which isn't fun at all.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
See our latest analysis for BigCommerce Holdings
Given that BigCommerce Holdings 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year BigCommerce Holdings saw its revenue grow by 27%. We think that is pretty nice growth. Unfortunately it seems investors wanted more, because the share price is down 61% 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 company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
BigCommerce Holdings is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think BigCommerce Holdings will earn in the future (free analyst consensus estimates)
A Different Perspective
We doubt BigCommerce Holdings shareholders are happy with the loss of 61% over twelve months. That falls short of the market, which lost 12%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 2.2%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that BigCommerce Holdings is showing 4 warning signs in our investment analysis , you should know about...
But note: BigCommerce Holdings 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 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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